Principles of Consumer Choice and Utility in Microeconomics Quiz
Test your understanding of utility, budget constraints, and consumer equilibrium with these microeconomics quiz questions!
#1
Which of the following best defines utility in microeconomics?
The measure of satisfaction derived from consuming a good or service
The total revenue earned by a firm
The amount of goods and services produced in an economy
The total cost of production for a firm
#2
What is the law of diminishing marginal utility in microeconomics?
As the quantity consumed of a good increases, the total utility also increases
As the quantity consumed of a good increases, the marginal utility also increases
As the quantity consumed of a good increases, the total utility decreases
As the quantity consumed of a good increases, the marginal utility decreases
#3
What is the formula for calculating total utility in microeconomics?
#4
In consumer choice theory, what does the term 'marginal utility' refer to?
The additional satisfaction gained from consuming one more unit of a good or service
The total satisfaction derived from consuming all units of a good or service
The price elasticity of demand for a good or service
The total utility derived from consuming all units of a good or service
#5
Which of the following represents the budget constraint equation in microeconomics?
P = MC
P = MR
P = TR/Q
P = Y - PxQx - PyQy
#6
What does the indifference curve represent in microeconomics?
A graph showing various combinations of two goods that yield the same level of satisfaction
A graph illustrating the relationship between price and quantity demanded
A curve representing the total utility derived from consuming a good or service
A curve depicting the relationship between income and consumption
#7
Which of the following best describes the concept of consumer surplus?
The additional satisfaction gained from consuming one more unit of a good or service
The difference between the maximum price a consumer is willing to pay for a good and the actual price paid
The total satisfaction derived from consuming all units of a good or service
The price elasticity of demand for a good or service
#8
What does the Engel curve illustrate in microeconomics?
The relationship between two goods that are substitutes
The relationship between two goods that are complements
The relationship between income and the quantity demanded of a good
The relationship between price and the quantity demanded of a good
#9
Which of the following is NOT an assumption of consumer behavior in microeconomics?
Consumers aim to maximize their utility
Consumers have perfect information about product prices and characteristics
Consumers face budget constraints
Consumers exhibit rational behavior
#10
Which of the following is a characteristic of a Giffen good?
The quantity demanded of the good decreases as income increases
The demand for the good increases as its price increases
The demand for the good decreases as its price decreases
The quantity demanded of the good increases as income decreases
#11
Which of the following represents the concept of diminishing marginal rate of substitution?
The rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction decreases
The rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction increases
The rate at which a consumer is willing to consume additional units of a good decreases as the price of that good decreases
The rate at which a consumer is willing to consume additional units of a good increases as the price of that good increases
#12
What is the Hicksian demand curve used to represent in microeconomics?
The relationship between income and consumption
The relationship between two goods that are complements
The relationship between price and quantity demanded
The relationship between price and quantity demanded while holding utility constant
#13
In consumer choice theory, what is the slope of the indifference curve?
The price of the good on the x-axis divided by the price of the good on the y-axis
The quantity of the good on the y-axis divided by the quantity of the good on the x-axis
The ratio of the change in quantity of one good to the change in quantity of the other good
The ratio of the change in utility to the change in quantity of one good
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Consumer Economics
Popular Quizzes in Economics
Report