Table Marginal and Total Benefit Number of Games 0 1 2 3 4 5

Table: Marginal and Total Benefit

Number of Games             0      1       2       3        4        5         6        7         8

Total Benefit                         0      50     90     120    140     152     160    164     162

Reference: Ref 9-6 Table: Marginal and Total Benefit

(Table: Marginal and Total Benefit) Use Table: Marginal and Total Benefit. Sid is deciding how many football games he wants to attend this year. If the games are free, how many games should he attend?

Select one:

a. 5

b. 1

c. 7

d. 8

Which question BEST describes a \"how much\" decision?

Select one:

a. Should I drive to work or ride my bicycle?

b. Should I rent a movie or watch a baseball game on television?

c. Should I attend graduate school or immediately enter the labor force?

d. Should I buy a third hot dog?

The amount by which an additional unit of an activity increases total benefit is:

Select one:

a. utility.

b. marginal benefit.

c. marginal cost.

d. net benefit.

Table: Marginal and Total Benefit

Number of Games

Number of Games

Number of Games   0    2     3       4      5         6      7         8

Total Benefits          1    50   12   140     152    160    164     162

(Table: Marginal and Total Benefit) Use Table: Marginal and Total Benefit. Sid is deciding how many football games he wants to attend this year. If tickets to each football game cost $10, then he should attend _____ game(s).

Select one:

a. 2

b. 0

c. 5

d. 1

Table: The Utility of Macaroni and Cheese

Number of Servings        0 1   2     3    4     5       6     7

Total Utility                     0   1   25   35 60    60      35     25

Reference: Ref 10-3 Table: The Utility of Macaroni and Cheese

(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese. Carmen loves eating macaroni and cheese on Thanksgiving. Carmen\'s total utility is maximized after she eats the _____ serving.

Select one:

a. first

b. second

c. sixth

d. forth

Table: The Utility of Macaroni and Cheese

Number of Servings              0    1     2   3    4   5       6      7

Total Utility                            0     10   25   35   60 60 35 25

Reference: Ref 10-3 Table: The Utility of Macaroni and Cheese

(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese. Carmen loves eating macaroni and cheese on Thanksgiving. The marginal utility she derives from the second serving she eats is _____ units.

Select one:

a. 15

b. 35

c. 5

d. 10

Faruq spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. Put tacos on the horizontal axis and milkshakes on the vertical axis. The slope of Faruq\'s budget line is equal to:

Select one:

a. 1/5.

b. -5.

c. 5.

d. -1/5.

Solution

Here is the marginal utility(MU) after first serving=1-0=1

MU after 2nd serving=25-1=24

MU after 3rd serving=35-25=10

MU after 4th serving=60-35=25

MU after 5th serving=60-60=0

Hence, she derives additional utility from additional serving of macaroni and cheese till fourth serving after that the MU becomes 0 and gradually turns negative.

MU derived from 0 serving=0

MU derived from 1 serving=10-0=10

MU derived from 2 serving=25-10=15