1. Suppose that Dallas derives 40 utils of total utility from eating 3 hotdogs and 42 utils of total utility from eating 4 hotdogs. What is Dallas' marginal utility from eating the 4th hotdog?

Group of answer choices

2

6

7

6.67

2. A representative unit that measures the want-satisfying power of a good is

Group of answer choices

a margin.

purchasing power.

income.

a util.

3. Marginal utility is

Group of answer choices

the utility received from consuming one unit of a good.

the change in total utility due to a one-unit change in the quantity of a good consumed.

the total utility received from consuming a certain quantity of a good divided by the quantity.

the utility received by the last consumer of a good.

4. Marginal utility can be thought of as

Group of answer choices

the incremental change in a person's total satisfaction level from the consumption of a good.

the total change in satisfaction from buying a good.

the additional cost of that next good purchased.

the opportunity cost of buying the next good.

5. If marginal utility is zero,

Group of answer choices

a rational consumer will consume more units next time.

a rational consumer will consume fewer units next time.

a rational consumer will not consume additional units.

a rational consumer will consume more units if the price is zero.

6. The consumer optimum for consuming two goods is achieved when

Group of answer choices

the total utility from each good is equal.

the price of each good is equal.

the price multiplied by the marginal utility is equal for the two goods.

the marginal utility per last dollar spent is equal for the two goods.

7. A decrease in the price of a good causes

Group of answer choices

the utility of the good to decrease.

the marginal utility of the good to decrease.

purchasing power of a person's income to increase.

the nominal wealth of a person to increase.

8. An advantage of proprietorships is

Group of answer choices

the ease with which they can be formed and dissolved.

their ability to raise large amounts of equity capital.

the fact that their profits are not taxed.

the breadth of management expertise that comes from having a board of directors.

9. One disadvantage of a partnership is

Group of answer choices

limited liability.

lower monitoring costs.

difficulty raising funds.

it permits greater specialization.

10. The nominal rate of interest is

Group of answer choices

the same as the price level.

the real rate of interest minus the previous year's change in the price level.

the interest rate actually paid by the borrower.

lower than the real rate in a period of inflation.

11. The nominal rate of interest is 4% and the anticipated rate of inflation is 5%. What is the real rate of interest?

Group of answer choices

1%

-1%

4%

9%

12. Which of the following is TRUE about the long run?

Group of answer choices

All resources are variable.

All resources are fixed.

At least one resource is fixed.

none of these

13. Corporation A is planning on expanding the size of its factory given the amount they want to produce. Corporation A is now operating in the

Group of answer choices

production time.

corporation time.

long run.

short run.

14. Under perfect competition, the firm must decide

Group of answer choices

the best price to charge for its product.

the best rate of output it should produce.

the optimal level of advertising to engage in.

the optimal level of quality and the packaging that will maximize profits.

15. If a firm in a perfectly competitive market raises its price,

Group of answer choices

it will sell more products.

it will sell fewer products.

its sales will remain unchanged.

it will sell nothing.