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Chapter 5 Consumer Behavior and Utility Maximization

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following statement is true for Theory of Consumer Behaviour?

a)

To reduce the risk in purchasing

b)

To maximize their benefits or sense of achievement

c)

To increase the awareness be a smart consumer

d)

To increase the income

2.

Which following is one of the Theory of Consumer Behavior?

a)

Cardinal Utility Theory

b)

Supply and Demand

c)

Marginal Utility

d)

Laissez-faire Capitalism

3.

The unit used to measure the utility is called...

a)

kilogram

b)

unit

c)

util

d)

RM

4.

The principle of the budget constraint...

a)

b)

c)

d)

5.

Factor which affect budget constraint are...

a)

Number of goods

b)

Price of goods

c)

Types of goods

d)

Market Need

6.

How many assumptions considered in the analysis of the indifference curve?

a)

Two

b)

Five

c)

None

d)

Four

7.

When Total Utility is increasing, Marginal Utility will be ________.

a)

zero

b)

negative

c)

positive

d)

one

8.

The following are the characteristics of indifference curves except...

a)

Sloping upward

b)

Bowed or convex to origin

c)

Does not cross

d)

Further from the origin is more preferable

9.

Consumer utility maximization occurs when the indifference curve is ________ to budget constraint.

a)

less

b)

tangent

c)

more

d)

zero

10.

Calculate the Marginal Utility per dollar (MU/P)

One milk tea costs RM8. Siva bought two and the Marginal Utility is 60 utils.

a)

7.5

b)

3.75

c)

30

d)

4