Understanding Utility and Marginal Utility

Understanding Utility and Marginal Utility

Assessment

Interactive Video

Business, Economics

10th - 12th Grade

Hard

Created by

Aiden Montgomery

FREE Resource

The video explores the concept of utility, focusing on how it measures satisfaction from goods or services. It distinguishes between marginal utility and marginal benefit, explaining that they are conceptually similar but used differently in economics. The video uses chocolate bars and fruit to illustrate how utility can be measured in arbitrary units and how these measurements can inform spending decisions based on price and utility per dollar.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the concept of utility measure?

The environmental impact of a good or service

The benefit or satisfaction from a good or service

The cost of a good or service

The time taken to consume a good or service

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is marginal utility different from total utility?

Marginal utility is always higher than total utility

Marginal utility is measured in monetary terms only

Marginal utility is the satisfaction from the next unit consumed

Marginal utility is the total satisfaction from all units consumed

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main difference between marginal utility and marginal benefit?

Marginal utility is always higher than marginal benefit

Marginal utility is measured in absolute terms, while marginal benefit is often measured in dollars or other goods

Marginal utility applies only to services, while marginal benefit applies to goods

Marginal utility is a concept used only in macroeconomics

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to the marginal utility of chocolate bars as more are consumed?

It increases with each additional bar

It remains constant

It decreases with each additional bar

It becomes negative immediately

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a negative marginal utility indicate?

The consumer is willing to pay more for the good

The consumer derives no additional satisfaction from the good

The good is free

The good is harmful

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is total utility calculated?

By subtracting the cost from the total benefit

By dividing the total satisfaction by the number of units

By multiplying the price of the good by the quantity consumed

By adding up the marginal utilities of all units consumed

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might someone choose to buy fruit over chocolate bars, according to the video?

Because chocolate bars have no utility

Because fruit has no diminishing returns

Because the marginal utility of fruit is higher

Because fruit is always cheaper

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