Practice Theory Of Consumer Behaviour (2) - Theory of Consumer Behaviour

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8 questions

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6 questions · about 4 min · pass mark 70%. Hints available.
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2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is utility?
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Think about how you feel when you eat your favorite food.
Question 2.
Define Total Utility.
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Consider all the cookies you eat at a party.
3Question 3.
What does the term 'Marginal Utility' refer to?
- Total satisfaction from consumption
- Change in satisfaction from one additional unit
- None of the Above
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Think of adding one more slice of pizza on your plate!
4Question 4.
An indifference curve represents:
- True
- False
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Imagine you are satisfied with multiple options.
Question 5.
If a consumer's total utility from consuming 10 bananas is 50, and from 11 bananas is 53, what is the marginal utility of the 11th banana?
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Use the formula: MU = TU(n) - TU(n-1).
Question 6.
A consumer faces a budget constraint where the price of good X is 5 and good Y is 10. If their income is 50, calculate the maximum amount of good X they can purchase.
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Use the budget line formula to calculate maximum consumption.

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