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SHS Economics · Year 1

Utility practice questions

The meaning of utility, total and marginal utility, the law of diminishing marginal utility, and how utility guides consumer decision-making.

13 questions in this topic: 3 recall, 2 applying skills and concepts, 5 strategic thinking and 3 extended thinking. Every one carries a written explanation.

Sample questions

3 of 13 questions in this topic. Sign up to answer them and see the explanations.

  1. Question 1Skills & concepts

    Two people watch the same movie at the same time but report different levels of enjoyment. This shows that

    • autility is subjective, so different consumers can derive different levels of satisfaction from the same commodity
    • butility is always identical for every consumer of a commodity
    • conly one of the two people experienced utility at all
    • dutility can only be measured for physical goods, not services
  2. Question 2Extended thinking

    In the same utility schedule, why does total utility stop rising once marginal utility reaches 0 at the 4th orange?

    • aBecause total utility only increases when marginal utility is positive; adding zero leaves it unchanged
    • bBecause the price of oranges has increased at that point
    • cBecause the consumer has run out of money to buy more oranges
    • dBecause total utility always equals marginal utility at every quantity
  3. Question 3Recall

    Marginal utility is best described as

    • athe additional satisfaction a consumer derives from one additional unit of a commodity consumed
    • bthe total satisfaction gained from consuming every unit of a commodity
    • cthe price paid for the last unit of a commodity bought
    • dthe satisfaction lost when a consumer buys too little of a commodity

Answer these and 10 more on Utility

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Year 2 covers this ground again in Utility (Y2), with 17 questions.

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