Utility Theory and Analysis: AP Microeconomics Online Test

Which statement declines the explanation offered by the Marginal Utility Analysis?
The additional level of satisfaction achieved by the consumption of an additional unit of the commodity.
Consumer’s demand for a product.
The Consumer’s equilibrium of a set of combination of different goods at a given level of Income.
The price of a product is inversely related to its price.
The consumer’s equilibrium of a single commodity with one use.

I only
II only
I and III
II and IV
I and IV
Which of the following statements relating to the Indifference Curve, has been stated correctly?
Two Indifference Curves representing different levels of satisfaction, often intersect each other
An Indifference Curve shows that both products yield the same utility.
The slope of an Indifference Curve is negative
The Law of Diminishing Marginal Rate of Substitution states that the Marginal Utility derived from the consumption of one commodity keeps on declining as more units of this commodity is consumed; the consumption of all other commodities being constant.
Hicks and Allen did not support the Indifference Curve Analysis.
Which of the following statements is not true?
For Normal goods, the Income effect is positive
For Inferior goods, the Price effect is negative
For Normal goods, the Price effect is negative
For Giffen goods, the Price effect is positive
For Giffen goods, the Price effect is negative
MRSxy is the:
Slope of the Demand Curve
Main Indifference Curve in the Indifference Map
Demand Curve
Slope of the Indifference Curve
Slope of the Iso-cost line
Which of the following types of goods does not satisfy the Cardinal Utility Analysis?
Giffen goods
Precious goods
Semi-Precious goods
Inferior goods
Normal goods

I only
II only
III only
I and II
II and III
Which of the following economists was not associated with formulating or elaborating the concept of Marginal Utility Analysis?
Edge worth

I b, e, g
I e, f, h
II a, b, c, g, j
II d, e, h, i, j
II b, e, g, i, j
A consumer gets maximum Total Utility when:
Maximum units are purchased and consumed
The total Utility of all commodities consumed is zero
The Marginal Utility is zero
The Marginal Utility of each commodity consumed is maximum
All of the Above

This is a short test on the concept of Utility and its Analysis. You’ll find Multiple Choice questions on the basics of Utility, its types, Marginal Utility Analysis, and Indifference Curve Analysis. This test is a must for any student preparing for AP Microeconomics. It offers a quick revision of the entire concept of Utility.

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