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Consumer Choice Theory Quiz

Consumer Choice Theory: ten practice questions on budgets and utility, with concepts and calculations. Every answer is explained.

Free, with no sign-up.

ByLelfy Editorial Team

For High school students and adults reviewing the topic.

About 12 minutes. 10 questions.

How does it work?

  1. Choose one answer or enter a number in the stated unit, then check it.
  2. Your first submitted answer counts toward the score. There is no timer.

What will you get?

See your first-attempt score and an explanation for every answer.

Question 1A learner has an illustrative budget of 60 dollars. Good X costs 5 dollars per unit. If nothing is spent on other goods, how many units of X are affordable?

Answers within 0.01 units of the expected value are accepted.

Question 2Put X on the horizontal axis and Y on the vertical axis. Their prices are 5 and 10 dollars per unit. Find the slope of the budget line.

Answers within 0.01 units of Y per unit of X of the expected value are accepted.

Question 3Income rises while both prices stay fixed. What happens to the budget line?
Question 4With a 60 dollar budget, X costs 5 dollars and Y costs 10 dollars. After buying 4 units of X, how many units of Y can use the remaining budget?

Answers within 0.01 units of the expected value are accepted.

Question 5A small additional unit of X gives 12 utility units and costs 3 dollars. Find its marginal utility per dollar.

Answers within 0.01 utility units per dollar of the expected value are accepted.

Question 6At an interior optimum with divisible goods and diminishing marginal utility, what must hold for the last dollar spent on each good?
Question 7An interior optimum has MUx/Px = MUy/Py. MUx is 24 utility units, Px is 4 dollars, and Py is 3 dollars. Find MUy.

Answers within 0.01 utility units of the expected value are accepted.

Question 8At the current bundle, X gives 6 marginal utility units per dollar and Y gives 3. Assume divisible goods and an affordable small adjustment. Which spending shift initially raises utility?
Question 9Good X costs 5 dollars and good Y costs 10 dollars. Find the cost of 4 units of X and 3 units of Y.

Answers within 0.01 dollars of the expected value are accepted.

Question 10Why might a best affordable bundle fail to satisfy equal marginal utility per dollar for both goods?

Answer every question to see and share your score.

Read the topic guide