Econ 101 - Microeconomics » Fall 2022 » Consumer Choice Quiz

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Question #1
A bottle of wine costs $8 and a quiche, $5. At Robert's present levels of consumption, he spends all his income and receives marginal utility of $10 from the last bottle of wine and marginal utility of $4 from the last quiche. To maximize his total utility, Robert should
A.   spend all of his money on wine.
B.   change his spending pattern until he buys 8/5ths as much wine as quiche.
C.   buy less wine and more quiche.
D.   buy more wine and less quiche.
Question #2
Consumer's surplus is a measure of how much
A.   a change in price induces a consumer to substitute other goods.
B.   a consumer's marginal utility differs from his total utility.
C.   more utility a consumer receives from his purchases than he has to pay for them.
D.   less than his income a consumer spends on goods.
Question #3
If the marginal utility to Juan of sleeping an extra hour (from 8 a.m. to 9 a.m.) is negative,
A.   Juan is better off getting up at 8 a.m.
B.   Juan's total utility from sleeping must be negative.
C.   Juan is better off getting up at 9 a.m.
D.   Juan's average utility from every hour he sleeps must be negative.
Question #4
Market demand curves are found by
A.   vertically summing individual demand curves.
B.   summing individual demand curves in a parallel fashion.
C.   adding the slopes of individual demand curves.
D.   horizontally summing individual demand curves.
Question #5
Which of the following factors is always present in consumer decision making?
A.   scarcity
B.   changing consumer tastes
C.   taxes
D.   high prices
Question #6
Total utility can be thought of as the
A.   additional satisfaction a consumer receives from the marginal unit of a good.
B.   minimum amount of money a consumer is willing to spend on a bundle of goods.
C.   total satisfaction derived from a bundle of goods.
D.   willingness to pay for the marginal unit of a good.
Question #7
The optimal purchase rule is stated as
A.   MU = 0.
B.   MU = P.
C.   TU = MU.
D.   TU = P.
Question #8
The theory of consumer choice is based on the hypothesis that each consumer wants to
A.   minimize the rate at which her marginal utility diminishes.
B.   minimize the percentage of her consumption diverted to inferior goods.
C.   maximize her marginal utility.
D.   maximize her total utility.
Question #9
For most goods and most people, marginal utility probably
A.   is negative after the first unit of a good is purchased.
B.   plummets after the first few units but soon begins to rise.
C.   declines as consumption increases.
D.   continues to increase as larger quantities are purchased.
Question #10
An inferior good is one
A.   whose quantity demanded falls when the purchaser's income rises.
B.   suitable for a garage sale.
C.   ordinarily bought by college students from college-town merchants.
D.   produced by American industries.

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