Worksheetstopic 5 household behaviour and choice
Total questions: 10
Worksheet time: 5mins
What is the main reason people demand goods and services?
To show off their wealth
To increase the market supply
To receive satisfaction or pleasure
To reduce their expenses
What does the term “utility” refer to in economics?
The physical size of a product
The cost of producing a good
The satisfaction gained from consuming a good
The demand of a consumer
Which of the following best describes the Law of Diminishing Marginal Utility?
Utility increases with every additional unit consumed
Price decreases as quantity increases
Extra satisfaction decreases with each additional unit consumed
Marginal cost remains constant
If a good is free, when should a consumer stop consuming it?
When total utility is zero
When marginal utility becomes zero
When the good is no longer available
When the price increases
The Law of Equi-Marginal Utility states that utility is maximized when:
The cheapest product is always chosen
Total utility is equal across all goods
Every ringgit spent gives the same marginal utility
Marginal utility equals total utility
What is marginal utility?
The total satisfaction from all units consumed
The extra satisfaction from consuming one more unit
The utility from consuming no goods
The cost of buying a good
Which of the following is an example of the substitution effect?
A person chooses to buy more expensive goods
A person increases their savings
A person switches from buying Coke to Pepsi because Pepsi is cheaper
A person stops buying all soft drinks
According to Islamic perspective, what is considered israf?
Giving to charity
Buying basic necessities
Spending money wastefully or excessively
Saving money for future needs
What are the three types of human needs according to Al-Shatibi?
Basic, Necessary, Luxury
Food, Shelter, Clothes
Dharuriyyat, Hajiyyat, Tahsiniyyat
Primary, Secondary, Tertiary
In cardinal utility theory, how is utility measured?
With percentages
Using ranking only
Through numerical values (e.g., utils)
By comparing prices
