Utility Quiz

What is utility?

• Measurement of dissatisfaction or lack of value from consuming a good or service

• The process of producing goods or services

• The amount of money spent on a good or service

• Measurement of satisfaction or value from consuming a good or service

Define utility in economics.

• The total amount of money a person has

• The cost of producing a good or service

• The amount of goods or services available in the market

• Satisfaction or usefulness obtained from consuming a good or service

What are the different types of utility?

• form utility, time utility, place utility, possession utility, and information utility

• physical utility, emotional utility, intellectual utility, and spiritual utility

• economic utility, social utility, cultural utility, and environmental utility

• form utility, time utility, place utility, possession utility, and information utility

Explain the concept of total utility.

• The total number of units of a good or service consumed.

• Overall satisfaction or benefit from consuming a certain quantity of a good or service.

• The average satisfaction or benefit from consuming a certain quantity of a good or service.

• The total amount of money spent on a good or service.

What is marginal utility?

• The cost of producing one additional unit of a good or service.

• The total satisfaction or benefit that a consumer derives from consuming a good or service.

• The price at which a good or service is sold in the market.

• The additional satisfaction or benefit that a consumer derives from consuming one additional unit of a good or service.

How is marginal utility calculated?

What is the law of diminishing marginal utility?

• The law of diminishing marginal utility states that as a person consumes more units of a good or service, the additional satisfaction or utility derived from each additional unit will eventually increase.

• The law of diminishing marginal utility states that as a person consumes more units of a good or service, the additional satisfaction or utility derived from each additional unit will remain constant.

• The law of diminishing marginal utility states that as a person consumes more units of a good or service, the additional satisfaction or utility derived from each additional unit will eventually decrease.

• The law of diminishing marginal utility states that as a person consumes more units of a good or service, the additional satisfaction or utility derived from each additional unit will fluctuate randomly.

What is consumer surplus?

• The difference between the maximum price a consumer is willing to pay for a product and the actual price they pay.

• The difference between the price a producer is willing to sell a product for and the actual price they receive.

• The total amount of money a consumer spends on a product.

• The difference between the minimum price a consumer is willing to pay for a product and the actual price they pay.

What is producer surplus?

• The difference between the price at which producers are willing to sell a good and the actual price they receive.

• The difference between the price at which producers are willing to sell a good and the actual price they pay.

• The difference between the price at which producers are willing to sell a good and the actual price consumers pay.

• The difference between the price at which producers are willing to sell a good and the actual cost of production.

How does utility affect consumer behavior?

• Utility primarily influences consumer behavior through advertising.

• Utility affects consumer behavior by influencing their preferences and choices.

• Utility only affects consumer behavior in certain situations.

• Utility has no impact on consumer behavior.