Consumer Behaviour
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Question 1
Free
Multiple Choice
In economics,the term "utility" is defined as the
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system of basing the price of a good on its usefulness to society.
usefulness of a good.
total consumer satisfaction received from consumption of a good.
usefulness of a theory to explain price determination.
a service such as sewer and water or electricity.
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Question 2
Free
Multiple Choice
Economists usually assume that consumers
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are motivated to maximize their profit.
are poor judges of what is best for them.
spend all of their current income.
usually save as much as possible of their income.
are motivated to maximize their utility.
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Question 3
Free
Multiple Choice
Economists use the term "marginal utility" to describe the
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change in total satisfaction caused by consumption of an additional unit of a good.
average utility of each unit of a good consumed.
inverse of the measure of total utility.
total satisfaction received from consumption of a good.
price paid for every unit consumed.
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Question 4
Free
Multiple Choice
The idea that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases is known as
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the paradox of value.
the utility theory of demand.
utility maximization.
diminishing marginal utility.
diminishing total utility.
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Question 5
Free
Multiple Choice
The "law" of diminishing marginal utility implies that the
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first unit of a good consumed will contribute most to the consumer's satisfaction.
last unit of a good consumed will contribute most to the consumer's satisfaction.
total utility is negative.
total utility is constant as more units are consumed.
marginal utility of a good diminishes over time.
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Question 6
Multiple Choice
If consumption of an extra unit of some good generates a marginal utility of zero,then consumption of that additional unit would mean that total utility would
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also be zero.
not change.
be increasing.
be decreasing.
be negative.
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Question 7
Multiple Choice
If total utility from the consumption of some product is increasing as more units are consumed,then marginal utility must be
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decreasing at an increasing rate.
negative.
increasing.
increasing at an increasing rate.
positive.
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Question 8
Multiple Choice
If total utility from the consumption of some product is decreasing as more units are consumed,then marginal utility must be
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positive.
negative.
decreasing.
decreasing at an increasing rate.
increasing at a decreasing rate.
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Question 9
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.The marginal utility of the second unit of the good consumed is
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10.
20.
30.
40.
50.
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Question 10
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.The total utility from consuming two units of the good is
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20.
40.
60.
80.
140.
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Question 11
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.The consumer's total utility is
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increasing at an increasing rate.
increasing at a decreasing rate.
decreasing at an increasing rate.
decreasing at a decreasing rate.
constant.
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Question 12
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.If this figure represents the utility obtained from consuming units of a good,how many units would this consumer consume if the good were free?
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1
2
3
4
at least 5
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Question 13
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.This figure illustrates the law of
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maximizing utility.
increasing total utility.
diminishing total utility.
diminishing marginal utility.
increasing marginal utility.
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Question 14
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.Marginal utility is zero when total utility is
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equal to zero.
is decreasing.
is increasing.
equal to marginal utility.
at its maximum.
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Question 15
Multiple Choice
FIGURE 6-1
-Refer to Figure 6-1.Total utility is at its maximum when marginal utility is
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equal to zero.
negative.
positive.
equal to total utility.
at the maximum.
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Question 16
Multiple Choice
If consumption of an extra unit of a product delivers a positive marginal utility,then consumption of that additional unit would mean
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that total utility is also zero.
that total utility would not change.
that total utility would be increasing.
that total utility would be decreasing.
that the consumer would no longer receive any satisfaction from any consumption of this good.
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Question 17
Multiple Choice
A basic hypothesis of marginal utility theory is that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases.This hypothesis is known as
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the paradox of value.
the utility theory of demand.
utility maximization.
the law of diminishing marginal utility.
the law of diminishing total utility.
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Question 18
Multiple Choice
Marginal utility theory is about
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the consumer behaviour that underlies the theory of demand.
proving that demand curves are always downward sloping.
the total satisfaction resulting from the consumption of some good by the consumer.
how producers allocate their scarce resources.
calculating consumer surplus.
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Question 19
Multiple Choice
The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
TABLE 6-1
-Refer to Table 6-1.If this consumer purchases 3 toffee bars and 4 bags of cashews per week,his/her total utility will be
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7.
23.
31.
54.
57.
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Question 20
Multiple Choice
The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
TABLE 6-1
-Refer to Table 6-1.The maximum utility that a consumer can obtain from toffee bars and bags of cashews per week is
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22.
54.
56.
64.
74.
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