Consumer Behaviour Quizzes: Test Your Understanding of Consumer Choices

Question 1

Which of the following best describes a key principle of rational consumer choice?

Accepted Answer

Consumers aim to get the most satisfaction they can for their money.

Answer

Consumers are always willing to pay a premium for higher-priced items.

Answer

Consumer decisions are solely based on logical reasoning and calculations.

Answer

Consumers make impulsive purchases without regard for consequences.

Question 2

A fundamental assumption of utility theory in economics is that:

Accepted Answer

Consumers make rational choices to maximize their satisfaction.

Answer

Consumers have unlimited wants and desires.

Answer

Consumers always prefer more goods to fewer goods.

Answer

Consumers' preferences are always consistent and unchanging.

Question 3

The slope of a budget constraint reflects:

Accepted Answer

The ratio of the prices of the two goods.

Answer

The marginal rate of substitution between the goods.

Answer

The total amount of money the consumer has available to spend.

Answer

The consumer's level of utility.

Question 4

Which of the following factors would NOT cause a shift in an indifference curve?

Accepted Answer

A change in the weather conditions.

Answer

A change in consumer preferences.

Answer

A change in consumer income.

Answer

A change in the price of a substitute good.

Question 5

Consumer surplus can be defined as the difference between:

Accepted Answer

The price a consumer is willing to pay and the price they actually pay.

Answer

The total utility a consumer receives and their total expenditure.

Answer

The marginal utility of a good and its price.

Answer

The consumer's income and the cost of the goods they purchase.

Question 6

Which of the following is NOT a factor that influences consumer behaviour, as studied in the unit on Consumer Behaviour?

Accepted Answer

Political climate

Answer

Personal tastes and preferences

Answer

Economic conditions

Answer

Demographics

Question 7

Indifference curves illustrate combinations of goods that offer consumers:

Accepted Answer

Equal levels of satisfaction

Answer

Varying levels of satisfaction

Answer

Decreasing levels of satisfaction

Answer

No satisfaction

Question 8

A substitution effect takes place when:

Accepted Answer

The price of a good increases, leading consumers to shift towards substitute goods

Answer

The price of a good increases, leading consumers to shift away from substitute goods

Answer

The price of a good decreases, leading consumers to shift towards substitute goods

Answer

The price of a good decreases, leading consumers to shift away from substitute goods

Question 9

A key assumption of the marginal utility theory is that:

Accepted Answer

Consumers aim to maximize their total utility

Answer

Utility can be precisely measured

Answer

Consumers act rationally

Answer

Consumers have full and perfect knowledge of the market

Question 10

Which of the following reflects a consumer's preferred higher level of satisfaction for one bundle of goods over another?

Accepted Answer

Utility

Answer

Indifference

Answer

Budget constraint

Answer

Income

Question 11

On a budget constraint, the slope represents:

Accepted Answer

The price ratio of the two goods

Answer

The consumer's income

Answer

The marginal utility of the two goods

Answer

The consumer's indifference

Question 12

The relationship between price and quantity demanded is represented by:

Accepted Answer

Demand curve

Answer

Supply curve

Answer

Equilibrium price

Answer

Market clearing price

Question 13

When consumers buy more of a good as the price of a substitute good increases, this demonstrates:

Accepted Answer

Substitution effect

Answer

Income effect

Answer

Price effect

Answer

Income elasticity of demand

Question 14

An indifference curve represents:

Accepted Answer

Combinations of goods that provide the consumer with equal satisfaction.

Answer

Combinations of goods that the consumer can afford to purchase.

Answer

The rate at which the consumer substitutes one good for another.

Answer

The minimum quantity of goods the consumer requires to survive.

Question 15

The slope of an indifference curve indicates the:

Accepted Answer

Rate of substitution between goods

Answer

Marginal utility of each good

Answer

Consumer's budget constraint

Answer

Consumer's income level

Question 16

Ordinal utility, unlike cardinal utility, enables:

Accepted Answer

Ranking bundles of goods

Answer

Measuring the exact satisfaction derived from bundles

Answer

Determining the optimal consumption bundle

Answer

Predicting consumer behavior

Question 17

Which non-economic factor can significantly influence consumer behavior?

Accepted Answer

Social norms

Answer

Government regulations

Answer

Price fluctuations

Answer

Technological advancements

Question 18

Which of the following is a key ethical responsibility for businesses in handling consumer data?

Accepted Answer

Protecting consumer privacy

Answer

Maximizing profits

Answer

Ignoring consumer preferences

Answer

Sharing consumer data without consent

Question 19

How do social and cultural factors influence consumer behaviour and preferences?

Accepted Answer

They establish societal norms, values, and beliefs.

Answer

They directly increase income levels in society.

Answer

They result in fewer government regulations.

Answer

They promote rapid technological advancements.

Question 20

Which research method is most appropriate for collecting data on consumer preferences that are difficult to express directly?

Accepted Answer

In-depth Interview

Answer

Survey

Answer

Experiment

Answer

Focus Group

Question 21

Which of the following is NOT a determinant of consumer demand for a particular product?

Accepted Answer

Government policies related to credit availability

Answer

Income of consumers

Answer

Price of the product

Answer

Preferences of consumers

Question 22

The budget constraint line represents all possible combinations of goods that a consumer can purchase given:

Accepted Answer

Their income and the prices of the goods

Answer

Their preferences and the availability of the goods

Answer

Their savings and the interest rates

Answer

Their debts and the credit limits

Question 23

Which of the following is a typical feature of consumer equilibrium?

Accepted Answer

The budget constraint line is tangent to the highest attainable indifference curve

Answer

The indifference curve is tangent to the lowest possible budget constraint line

Answer

The budget constraint line and the indifference curve intersect at the origin

Answer

The indifference curve and the budget constraint line are parallel

Question 24

The price elasticity of demand is calculated as:

Accepted Answer

Percentage change in quantity demanded divided by the percentage change in price

Answer

Percentage change in price divided by the percentage change in quantity demanded

Answer

Absolute change in quantity demanded divided by the absolute change in price

Answer

Absolute change in price divided by the absolute change in quantity demanded

Question 25

How do cognitive biases and heuristics impact consumer decision-making?

Accepted Answer

They limit the information consumers gather.

Answer

They help consumers make perfect choices.

Answer

They increase consumer happiness.

Answer

They have no effect on consumer spending.

Question 26

Which of the following is not a determinant of consumer demand?

Accepted Answer

Number of producers

Answer

Price of the good

Answer

Income of the consumer

Answer

Tastes and preferences

Question 27

Indifference curves represent:

Accepted Answer

Combinations of goods that provide equal satisfaction to the consumer

Answer

Combinations of goods that represent a fixed level of income

Answer

Combinations of goods that maximize consumer utility

Question 28

A consumer's budget constraint illustrates:

Accepted Answer

All combinations of goods that the consumer can purchase given their income and prices

Answer

The consumer's marginal utility of each good

Answer

The consumer's preferred combination of goods

Question 29

When a consumer's income increases, their budget constraint will:

Accepted Answer

Shift outward

Answer

Shift inward

Answer

Become steeper

Answer

Remain unchanged

Question 30

Consumer surplus refers to:

Accepted Answer

The difference between the price a consumer is willing to pay for a good and the price they actually pay

Answer

The total amount a consumer spends on a good

Answer

The marginal utility a consumer derives from consuming a good

Question 31

Behavioral economics suggests that consumers:

Accepted Answer

May not always behave rationally and can be influenced by emotions and biases

Answer

Are perfectly rational and always make optimal decisions

Answer

Are highly influenced by social media

Question 32

Indifference curves illustrate:

Accepted Answer

Combinations of goods that provide the consumer with equal satisfaction.

Answer

The consumer's willingness to pay for a good.

Answer

The relationship between the price of a good and the quantity demanded.

Question 33

The budget constraint represents:

Accepted Answer

The boundary of possible consumption choices given income and prices.

Answer

The consumer's desired level of consumption.

Answer

The minimum level of consumption required for survival.

Question 34

Which of the following is a psychological factor that influences consumer behaviour?

Accepted Answer

Perception

Answer

Income

Answer

Availability

Answer

Price

Question 35

The law of diminishing marginal utility states that:

Accepted Answer

As consumption of a good increases, the additional satisfaction derived from each additional unit decreases.

Answer

As consumption of a good increases, the total satisfaction derived from the good increases at a constant rate.

Question 36

A primary goal of marketing is to:

Accepted Answer

Promote products or services to increase sales.

Answer

Set government policies.

Answer

Regulate consumer behaviour.

Question 37

Consumer surplus refers to:

Accepted Answer

The difference between the price consumers are willing to pay and the actual price they pay.

Answer

The difference between the total revenue received by a firm and its total costs.

Question 38

The elasticity of demand measures the:

Accepted Answer

Responsiveness of quantity demanded to changes in price.

Answer

Relationship between price and quantity supplied.

Answer

Willingness of consumers to pay for a good.