Chapter 6

Question 1

The difference between the total value to the consumer of consuming a specific amount of a good and the amount the consumer must pay for that amount of the good.

Answer 1

consumer surplus

Question 2

As a consumer purchases more of a good in a specific time period, the additional satisfaction enjoyed from the additional unit of the good will diminish.

Answer 2

Law of diminishing marginal utility

Question 3

A consumer will maximize his or her total well-being if the last dollar spent on each good provide the same marginal (additional) utility

Answer 3

marginal analysis

Question 4

The change in total utility or satisfaction resulting from consuming one more unit of a good or service.

Answer 4

marginal utility

Question 5

Income adjusted for price changes. A measure of the amount of goods and services one can purchase.

Answer 5

real income

Question 6

The total amount of satisfaction enjoyed from consuming a specific amount of a good or service.

Answer 6

total utility

Question 7

The satisfaction gained from consuming a good or service.

Answer 7

utility

Question 8

An increase in price will always lead to a decrease in ___ since fewer people will consume the good.

Answer 8

consumer surplus

Question 9

The more a consumer is willing to pay, the higher the ___ will be

Answer 9

consumer surplus