Question

1. What is the typical pattern for consumers when they make decisions on consumption?

A. As the consumption of a good increases, marginal utility rises.

B. As the consumption of a good increases, total utility falls but marginal utility rises.

C. As the consumption of a good increases, total utility falls.

D. As the consumption of a good increases, total utility rises, but marginal utility falls.

2. Implicit costs are ________.

A. a cost requiring actual money payment

B. the monetary value of all the inputs used for an activity

C. a foregone opportunity to do something else with your resources

Answer 1