ECON 2010 Quiz 2 (Doyle UVA) Test
Papers All Solved Correct 2025.
utility - Answer the pleasure or satisfaction people get from doing or consuming something
total utility - Answer the total satisfaction one gets from consuming a product
marginal utility - Answer the additional satisfaction one gets from consuming an additional
unit of a product above and beyond what has already been consumed up to this point
principle of diminishing marginal utility - Answer as you consume more of a good, after some
point, the marginal utility received from each additional unit of a good decreases with each
additional unity consumed, all other things equal
principle of rational choice - Answer spend your money on goods that give you the most
marginal utility (MU) per dollar
utility-maximizing rule - Answer when the ratios of the marginal utility to price of the two
goods are equal; you are maximizing utility and don't have to adjust your spending
income effect - Answer the reduction in quantity demanded because the increase in price
makes us poorer
substitution effect - Answer the reduction in quantity demanded because relative price has
risen
conspicious consumption - Answer the consumption of goods not for one's direct pleasure,
but simply to show off to others
real-income effect - Answer when the price of a good changes, your purchasing power
changes
total revenue - Answer the amount a firm receives from the sale of goods and services
, implicit costs - Answer opportunity costs of doing business or capital or time
accounting profit - Answer revenues - explicit costs
economic profit - Answer revenues - explicit costs - implicit costs (all costs)
production function - Answer the relationships between inputs and outputs
marginal product - Answer how much additional output is produced when an input is added
by a firm
diminishing marginal productivity - Answer less additional output from every additional
worker
diminishing marginal product - Answer increases in an input eventually cause output to
increase at a slower rate
variable costs - Answer costs that vary with the quantity of output produced (ex. food)
fixed costs - Answer costs that do not change as the level of outputs changes (ex. rent)
scale - Answer size of production process
efficient scale - Answer the scale to which average total cost is maximized
economies of scale - Answer ATC falls when production expands
diseconomies of scale - Answer ATC rises when production expands
constant returns to scale - Answer ATC remains constant as production expands
Papers All Solved Correct 2025.
utility - Answer the pleasure or satisfaction people get from doing or consuming something
total utility - Answer the total satisfaction one gets from consuming a product
marginal utility - Answer the additional satisfaction one gets from consuming an additional
unit of a product above and beyond what has already been consumed up to this point
principle of diminishing marginal utility - Answer as you consume more of a good, after some
point, the marginal utility received from each additional unit of a good decreases with each
additional unity consumed, all other things equal
principle of rational choice - Answer spend your money on goods that give you the most
marginal utility (MU) per dollar
utility-maximizing rule - Answer when the ratios of the marginal utility to price of the two
goods are equal; you are maximizing utility and don't have to adjust your spending
income effect - Answer the reduction in quantity demanded because the increase in price
makes us poorer
substitution effect - Answer the reduction in quantity demanded because relative price has
risen
conspicious consumption - Answer the consumption of goods not for one's direct pleasure,
but simply to show off to others
real-income effect - Answer when the price of a good changes, your purchasing power
changes
total revenue - Answer the amount a firm receives from the sale of goods and services
, implicit costs - Answer opportunity costs of doing business or capital or time
accounting profit - Answer revenues - explicit costs
economic profit - Answer revenues - explicit costs - implicit costs (all costs)
production function - Answer the relationships between inputs and outputs
marginal product - Answer how much additional output is produced when an input is added
by a firm
diminishing marginal productivity - Answer less additional output from every additional
worker
diminishing marginal product - Answer increases in an input eventually cause output to
increase at a slower rate
variable costs - Answer costs that vary with the quantity of output produced (ex. food)
fixed costs - Answer costs that do not change as the level of outputs changes (ex. rent)
scale - Answer size of production process
efficient scale - Answer the scale to which average total cost is maximized
economies of scale - Answer ATC falls when production expands
diseconomies of scale - Answer ATC rises when production expands
constant returns to scale - Answer ATC remains constant as production expands
