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

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