Consumer Behaviour (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does rational behaviour mean for consumers?
What does rational behaviour mean for consumers?
Maximising welfare from goods consumed
What is marginal utility?
What is marginal utility?
Extra satisfaction from one more unit
At the point of satiation, what happens to marginal utility and total utility?
At the point of satiation, what happens to marginal utility and total utility?
Marginal utility = 0, total utility maximised
What does the hypothesis of diminishing marginal utility state?
What does the hypothesis of diminishing marginal utility state?
Marginal utility falls for each extra unit
Why do diamonds have a higher price than water despite water being more useful?
Why do diamonds have a higher price than water despite water being more useful?
Diamonds scarce, higher marginal utility
What two factors together impose a budget constraint on consumers?
What two factors together impose a budget constraint on consumers?
Limited income and given prices
At what point does a utility-maximising consumer reach optimal consumption?
At what point does a utility-maximising consumer reach optimal consumption?
Where
What is revealed preference theory used for?
What is revealed preference theory used for?
Inferring preferences from buying behaviour
Which is NOT a constraint on consumer choice mentioned?
Which is NOT a constraint on consumer choice mentioned?
Government regulations
What happens when consumption continues beyond the point of satiation?
What happens when consumption continues beyond the point of satiation?
Negative marginal utility occurs