3. Consumer and Producer Theory

Utility Basics — Quiz

Test your understanding of utility basics with 5 practice questions.

Practice Questions

Question 1

If a consumer's total utility from consuming 3 units of a good is 45 utils, and the marginal utility of the 4th unit is 10 utils, what is the total utility from consuming 4 units?

Question 2

A consumer has a budget of $80 to spend on two goods: Good A at $10 each and Good B at $5 each. If the consumer buys 5 units of Good A, how many units of Good B can they afford with their remaining budget?

Question 3

If the marginal utility of Good X is 30 utils and its price is $6, while the marginal utility of Good Y is 20 utils and its price is $4, what should the consumer do to maximize utility?

Question 4

According to the Law of Diminishing Marginal Utility, what happens as a consumer consumes more units of a good?

Question 5

If a consumer's income increases, assuming prices remain constant, how does this affect their ability to achieve utility maximization?