Consumer Choice and Utility Concepts

Consumer Choice and Utility Concepts

Assessment

Interactive Video

Created by

Emma Peterson

Business, Economics, Social Studies

10th - 12th Grade

Hard

This video tutorial explores the concept of consumer choice, focusing on how individuals decide which goods and services to purchase given their limited income and the prices they face. It introduces the budget line model to illustrate affordable and unaffordable combinations of goods, using movies and concerts as examples. The tutorial explains the concept of utility, a theoretical construct used to rank consumer preferences, and introduces marginal utility, which describes the additional satisfaction from consuming one more unit of a good. The video concludes by discussing how consumers maximize utility by balancing the marginal utility per dollar spent across different goods.

Read more

10 questions

Show all answers

1.

MULTIPLE CHOICE

30 sec • 1 pt

What is the main problem discussed in the video tutorial?

2.

MULTIPLE CHOICE

30 sec • 1 pt

What does the budget line represent?

3.

MULTIPLE CHOICE

30 sec • 1 pt

What is the slope of the budget line determined by?

4.

MULTIPLE CHOICE

30 sec • 1 pt

What is the purpose of assigning utility numbers to different bundles?

5.

MULTIPLE CHOICE

30 sec • 1 pt

What does a higher utility number indicate?

6.

MULTIPLE CHOICE

30 sec • 1 pt

What is marginal utility?

7.

MULTIPLE CHOICE

30 sec • 1 pt

What happens to marginal utility as more units of a good are consumed?

8.

MULTIPLE CHOICE

30 sec • 1 pt

How do consumers decide which bundle of goods to choose?

9.

MULTIPLE CHOICE

30 sec • 1 pt

What does the equality of marginal utility per dollar spent on different goods indicate?

10.

MULTIPLE CHOICE

30 sec • 1 pt

How can the model of consumer choice be extended?

Explore all questions with a free account

or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?