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3 Utility and Marginal Utility Online Quiz Questions

Use this free practice quiz with 20 questions to review 3 Utility and Marginal Utility, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

In standard consumer theory, a utility value is necessarily a measurable quantity of happiness.

  1. A

    True

  2. B

    False

02
Fill in the blank
1 point

A utility representation in which the ranking of bundles matters but the particular utility numbers do not is called .

03
Written response
1 point

What kind of transformation of a utility function preserves the preference ranking of bundles?

04
Choose all
1 point

A utility function is replaced by a strictly increasing transformation of itself. Which statements must be true? Select all that apply.

  1. A

    It preserves the ranking of bundles.

  2. B

    It must leave every bundle's utility number unchanged.

  3. C

    It preserves which bundles are indifferent in the representation.

  4. D

    It makes utility a measurable quantity of happiness.

05
True or false
1 point

If marginal utility diminishes under one utility representation, it must diminish under every utility representation of the same preferences.

  1. A

    True

  2. B

    False

06
Fill in the blank
1 point

For U(q)=10q−q2U(q)=10q-q^2, the marginal utility function is MU(q)=MU(q)= .

07
Written response
1 point

A consumer's utility rises from 18 to 25 when consumption increases by one unit. What is the marginal utility of that discrete increase?

08
Choose all
1 point

A utility function is u(x,y)=x2+3yu(x,y)=x^2+3y. Which statements are correct? Select all that apply.

  1. A

    At (2,1)(2,1), MUx=4MU_x=4.

  2. B

    At (2,1)(2,1), MUy=2MU_y=2.

  3. C

    At (2,1)(2,1), MUy=3MU_y=3.

  4. D

    The value of MUxMU_x is found by changing yy while holding xx fixed.

09
Open ended
1 point

Explain why diminishing marginal utility under one utility representation is not, by itself, a representation-independent fact about preferences. In your answer, distinguish marginal-utility levels from the indifference-curve slope.

10
Choose one
1 point

In consumer theory, what does a utility function represent?

  1. A

    It measures the exact amount of happiness each bundle produces.

  2. B

    It represents how the consumer ranks bundles.

  3. C

    It records how much money was spent on each bundle.

  4. D

    It predicts how many units of each good the consumer will buy.

11
True or false
1 point

If one bundle has utility 10 and another has utility 5, the first bundle necessarily gives the consumer twice as much happiness.

  1. A

    True

  2. B

    False

12
Choose one
1 point

Which statement best defines the marginal utility of good xx in a differentiable utility function u(x,y)u(x,y)?

  1. A

    The total utility from consuming all goods in a bundle.

  2. B

    The utility change when all goods increase together.

  3. C

    The utility change from a small increase in one good, holding other goods fixed.

  4. D

    The amount of one good a consumer can purchase with a fixed budget.

13
Choose one
1 point

A utility representation assigns the same utility value to two different bundles. What does this imply about the consumer's preferences between them?

  1. A

    The consumer strictly prefers the first bundle.

  2. B

    The consumer is indifferent between the bundles.

  3. C

    The consumer strictly prefers the second bundle.

  4. D

    The bundles must contain equal quantities of each good.

14
Choose one
1 point

A consumer's utility rises from 12 to 18 when consumption of a good increases by one unit, with other goods held fixed. What is the marginal utility of that discrete increase?

  1. A

    6

  2. B

    12

  3. C

    18

  4. D

    30

15
Written response
1 point

What preference relation does a utility representation indicate between two bundles assigned equal utility values?

16
Choose one
1 point

For u(x,y)=xyu(x,y)=xy, what is the slope of the indifference curve at (x,y)=(2,6)(x,y)=(2,6)?

  1. A

    −13-\frac{1}{3}

  2. B

    −2-2

  3. C

    −3-3

  4. D

    −6-6

17
Choose one
1 point

For positive xx and yy, why do u(x,y)=xyu(x,y)=xy and v(x,y)=ln⁡x+ln⁡yv(x,y)=\ln x+\ln y represent the same preference ranking?

  1. A

    The natural logarithm is strictly increasing, so it preserves the ranking of positive xyxy values.

  2. B

    The two functions assign exactly the same utility number to every bundle.

  3. C

    The logarithm changes the ranking but preserves the quantities of each good.

  4. D

    The two functions have identical marginal-utility values at every bundle.

18
Choose one
1 point

Which statement about diminishing marginal utility is supported by consumer theory?

  1. A

    It is a universal rule for every utility function.

  2. B

    It is a common pattern, but not a universal rule.

  3. C

    It means total utility must fall whenever consumption rises.

  4. D

    It is unaffected by the choice of utility representation.

19
Choose one
1 point

A model assigns utility according to U(q)=10q−q2U(q)=10q-q^2 for 0≤q≤50\leq q\leq 5. What utility does it assign to consumption quantity q=4q=4?

  1. A

    1616

  2. B

    2424

  3. C

    3636

  4. D

    4040

20
Written response
1 point

A utility function is u(x,y)=xyu(x,y)=xy. What utility value does it assign to the bundle (3,5)(3,5)?