Question

h Not aximizing my utility (satisfaction) because I could have bought other jeans for a lower price b. Not maxim m utty tried, because they are in stvle Iam imizing my utility (satisfaction) because I could not get more enjoyment from a lower priced 35, I bu y designer jeans even though they are high-priced, because they are in style. I am jean c. Maximizing my uility satisfaction) because I derive utility not only from wearing jeans but from being in style the designer jean is d. e. Either maximizing my utility or not, depending on how much more expensive Not consuming rationally 36. The law of diminishing marginal utility states that a. Total utility decreases as more is consumed b. Total utility decreases as marginal utility increases c. Marginal d. Marginal utility decreases as total utility increases. e Marginal utility decreases as less is consumed tility increases as more is consumed. 37. Disposable income is a) The major determinant of consumption spending b) Total salary and wages less taxes and less transfer payments c) The income households have earned before taxes d) Aggregate income plus taxes and minus transfer payments e) A measure of income equivalent to GDP - 38. Marginal Utility a) Characterizes things of little use b) Is the additional utility derived from he last unit of a good consumed c) is defined by the law of demand d) Is always negative when total utility is positive and positive when total utility is negative -9. People who would buy a microwave oven tend to: a. Have a low opportunity cost of time. b. Have a high opportunity cost of time. c. Not maximize their utility d. Act irrationally. e. Value their money more than their time. 40. Which of the following is not an explicit cost: a. Wages b. Rent C. Utilities, such as gas and electricity d. Insurance e. Time of the firm's owner 41. Accounting profit is defined as total revenue: a. Minus opportunity costs. b. Plus opportunity costs c. Minus implicit costs. d. Minus explicit costs. e. Minus explicit costs minus implicit costs

Answer 1

35.
The answer is c.
c. Maximizing my utility(satisfaction) because I derive utility not only from wearing jeans but from being in style.
36.
The answer is d
d. Marginal utility decreases as total utility increases
The law of diminishing returns states that as more and more units of a good is consumed the marginal utility keeps on decreasing.
37.
The answer is a
a) the major determinant of consumption spending
Disposable income forms the major determinant of consumption spending
38.
The answer is b
b) is the additional utility derived from the last unit of a good consumed.
The marginal utility is the additional utility derived from the last unit of a good consumed.