#1
Which utility refers to the satisfaction obtained from consuming the last unit of a good or service?
Marginal utility
ExplanationSatisfaction from the last consumed unit
#2
Which type of utility is associated with the usefulness of a good in satisfying a particular want or need?
Total utility
ExplanationOverall satisfaction from consuming a good
#3
Which factor does NOT affect consumer utility?
The weather on the day of purchase
ExplanationExternal weather conditions
#4
What is the primary assumption behind the Law of Demand?
Consumers experience diminishing marginal utility
ExplanationDecreasing satisfaction
#5
Which utility concept emphasizes the ranking of preferences rather than the measurement of satisfaction?
Ordinal utility
ExplanationPreference ranking
#6
Which of the following is a characteristic of a Giffen good?
As price increases, demand decreases
ExplanationInverse relationship between price and demand
#7
According to the Law of Diminishing Marginal Utility, what happens as a consumer consumes more units of a good or service?
Marginal utility decreases at a decreasing rate
ExplanationDecreasing rate of decrease in satisfaction
#8
What is the Law of Substitution in the context of consumer choice?
Consumers will substitute one good for another to maximize total utility
ExplanationMaximizing utility through substitution
#9
What is the Law of Demand in economics?
As price decreases, quantity demanded increases
ExplanationInverse relationship between price and demand
#10
Which of the following is an example of an inferior good?
Generic brands
ExplanationLower quality, cheaper alternatives
#11
What is the Law of Equi-Marginal Utility?
Consumers will allocate their income in such a way that the marginal utility of each good is equal
ExplanationEqualizing marginal utility across goods
#12
In consumer theory, what does the term 'Indifference Curve' represent?
The combination of goods that provide the same level of satisfaction
ExplanationGoods combinations with equal satisfaction
#13
According to the concept of 'revealed preference,' how can a consumer's preferences be determined?
By observing the consumer's actions and choices
ExplanationPreferences inferred from actions
#14
What is the concept of 'Utility Maximization' in consumer theory?
Consumers seek to maximize marginal utility
ExplanationMaximizing satisfaction per unit
#15
In consumer choice theory, what is the significance of the budget line?
It shows all possible combinations of goods given the consumer's income and prices
ExplanationAffordable goods combinations