ECN 104 Final Exam Study Guide 2026 | Economics Review, Practice Questions &
Test Prep
Marginal utility is
a) Is the extra output a firm obtains when it adds another unit of labour
b) Explains why product supply curves slope upward
c) Typically rises as successive units of a good are consumed
d) Is the extra satisfaction from the consumption of one more unit of some good or service -
correct answer ✔✔D
When marginal utility is zero in panel (b), total utility in panel (a) is
a) Also zero
b) Neither rising nor falling
c) Negative
d) Rising but at a declining rate - correct answer ✔✔B
Suppose the person represented by these graphs experienced a diminished taste for tacos. As a
result the
, a) TU curve would get steeper
b) MU curve would get flatter
c) TU and MU curves would shift downward
d) MU curve, but not the TU curve, would collapse to the horizontal axis - correct answer ✔✔C
Which of the following is an assumption underlying these figures?
a) Firms first hire highly skilled workers and then hire less skilled workers.
b) Capital and labour are both variable, but labour increases more rapidly than capital.
c) Consumers will buy all the output (total product) produced.
d) Workers are of equal quality. - correct answer ✔✔D
Marginal product is
a) The change in total product divided by the change in the quantity of labour
b) Total product divided by the quantity of labour
c) Always positive
Test Prep
Marginal utility is
a) Is the extra output a firm obtains when it adds another unit of labour
b) Explains why product supply curves slope upward
c) Typically rises as successive units of a good are consumed
d) Is the extra satisfaction from the consumption of one more unit of some good or service -
correct answer ✔✔D
When marginal utility is zero in panel (b), total utility in panel (a) is
a) Also zero
b) Neither rising nor falling
c) Negative
d) Rising but at a declining rate - correct answer ✔✔B
Suppose the person represented by these graphs experienced a diminished taste for tacos. As a
result the
, a) TU curve would get steeper
b) MU curve would get flatter
c) TU and MU curves would shift downward
d) MU curve, but not the TU curve, would collapse to the horizontal axis - correct answer ✔✔C
Which of the following is an assumption underlying these figures?
a) Firms first hire highly skilled workers and then hire less skilled workers.
b) Capital and labour are both variable, but labour increases more rapidly than capital.
c) Consumers will buy all the output (total product) produced.
d) Workers are of equal quality. - correct answer ✔✔D
Marginal product is
a) The change in total product divided by the change in the quantity of labour
b) Total product divided by the quantity of labour
c) Always positive
