The extra utility from consuming one more unit of a good is called ?

Related Mcqs:

1. When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?

   A. less than the efficient level of output
   B. more than the efficient level of output
   C. so that consumer surplus is zero
   D. the efficient level of output

2. If marginal utility is zero ?

   A. Total utility is zero
   B. An additional unit of consumption will decrease total utility
   C. An additional unit of consumption will increase total utility
   D. Total utility is maximized

3. According to the law of diminishing utility ?

   A. Utility is at a maximum with the first unit
   B. Increasing units of consumption increase the marginal utility
   C. Marginal product will fall as more units are consumed
   D. Total utility will rise at a falling rate as more units are consumed

4. For economists, the word “utility” means:

   A. versatility and flexibility
   B. rationality
   C. pleasure and satisfaction
   D. purposefulness

   Submitted by: Mansoor Ul Haque

5. Utilitarianism suggests that the government should choose policies that maximize the total utility of everyone in society by ?

   A. redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance
   B. redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor
   C. allowing each individual to maximize their own utility without interference from the government
   redistributing income from rich to poor because this would maximize the well-being of the worst-off person in society

6. Which term is used for an addition to normal payment by a company or extra payment of gratuity to workers ?

   A. Bonus
   B. Overtime
   C. Prize
   D. Gift

7. When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?

   A. below the price because the price effect outweighs the output effect
   B. above the price because the output effect outweighs the price effect
   C. above the price because the price effect outweighs the output effect
   D. below the price because the output effect outweighs the price effect

8. If the price elasticity of demand is unit then a fall in price ?

   A. Reduces revenue
   B. Leaves revenue unchanged
   C. Increase revenue
   D. Reduces costs

9. The increase in total cost when one more unit is produced is known as ?

   A. marginal cost
   B. opportunity cost
   C. limited cost
   D. average cost

10. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?

    A. Should produce more units
    B. has maximized profits.
    C. is in a Nash equilibrium
    D. Should produce fewer units
    E. should exit the industry.