Eco08L1 1 The satisfaction that a person receives from consuming a good or service is called ______________. utility marginal utility marginal benefit total utility 2 Marginal utility theory assumes that when Sally consumes more of a good that she likes, her _________________. total utility is maximized marginal utility increases income increases total utility increases 3 Mark's marginal utility from reading books is the _______ when he reads ____________ . total utility he gets; one more book change in his total utility; more books change in his total utility; one additional book consumer surplus he gets; books 4 As you consume more and more of any good, you experience ___________________ utility. diminishing marginal negative marginal increasing marginal diminishing total 5 With a given income and prices of goods, Marcus will be in a consumer equilibrium if ______________________. he saves some of his income for the future he purchases the same amounts of all goods his marginal utility from all goods is the same he maximizes his total utility 6 The marginal utility per dollar spent is equal to the ______________ consumed divided by the price of the good. marginal utility from all units total utility from all units marginal utility from the last unit average utility from the units 7 Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good _________. is increasing is diminishing is maximized is the same 8 The relationship between total quantity demanded and the price is called the _________ demand. total equilibrium marginal market 9 The market demand curve for CDs is the _______ of all the individual demand curves for CDs. vertical sum sum horizontal product horizontal sum 10 Marginal utility theory shows us that a rare gem which we value highly has a _______marginal utility and a _______ total utility. large; large small; small small; large large; small Please enter your name and press the SEND button