Suppose You Are Consuming a Particular Good and You Could

question 173

Multiple Choice

Suppose you are consuming a particular good and you could somehow give back the last unit you consumed. What would happen to total and marginal utility (assuming that the marginal utility of the unit given back is positive) ?

• A)Both total and marginal utility would decrease.
• B)Both total and marginal utility would increase.
• C)Total utility would increase but marginal utility would decrease.
• D)Total utility would decrease but marginal utility would increase.
• E)There would be no change in marginal utility but total utility would decrease.

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Definitions:

Consensus Information

Information agreed upon by a group, often used in decision-making or predictions.

Stereotypes

Oversimplified, generalized beliefs about a group of people that do not account for individual differences.

Cooperate

To work or act together towards a common goal or benefit.

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as we forget its source or its source becomes less important over time.