AP Microeconomics Consumer Choices — practice questions
18 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice AP Microeconomics Consumer Choices in the app →Economists analyse decisions about what to buy as choices made within certain:In economic terms, consumers are described as trying to maximise their total:Total utility is described as the total amount of:Marginal utility is defined as the additional utility provided by:The law of diminishing marginal utility holds that additional utility does what with each unit added?Marginal utility per dollar is the additional utility received divided by the product's:The utility-maximizing choice identified by the general rule is called the:The substitution effect occurs when a price change gives consumers an incentive to consume less of the good thUnder the substitution effect, consumers consume more of the good that is:The income effect describes a higher price as reducing, in effect, the:Under the income effect, reduced buying power leads to buying less of a good when the good is:With a new budget constraint, a consumer chooses point N if both goods are:If overnight stays is an inferior good, the consumer instead makes a choice like:A budget constraint line with a rise of minus 8 over a run of 4 has a slope of:The negative slope of a budget constraint reflects that buying more of one good means:Consumer equilibrium is found by comparing across goods the marginal utility:Diminishing marginal utility means the total utility from extra units continues to rise but at a rate that is:A price rise for a normal good makes both effects push consumption of that good in which direction?