Introduction to Microeconomics - Week 3 Tutorial Pre-Test

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Which of the following is NOT an assumption that we make about consumer preferences?

• Completeness

• Downward-sloping

• Non-satiation

• Transitivity

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How is marginal utility defined?

• The utility gained from consuming the first unit of a given good.

• The total utility gained from consuming a bundle of goods.

• The utility gained from consuming only one good.

• The utility gained from consuming more of a good.

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The table shows the total benefit Mang Oleh gained from consuming various quantities of odadings. What is the marginal benefit received from buying the 7^th odading?

• 4.7 utils

• 4.1 utils

• 3.7 utils

• 3.4 utils

• 3.2 utils

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How do we graphically represent the utility maximizing bundle that consumers can afford?

• The point of tangency between an indifference curve and the budget constraint.

• The point at which the indifference curve and the budget constraint cross.

• A point on the indifference curve that is to the right of the budget constraint.

• The point where the budget constraint crosses the X or Y axis.

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What happens to a consumer when the price of a good she consumes increases, or her income decreases?

• He is unambiguously worse off.

• He is better off if a good's price increases, but worse off if her income decreases.

• He is unambiguously better off.

• He may be better off or worse off, depending on her preferences.