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Questions and Answers
What are the three steps of consumer behavior?
The three steps of consumer behavior are preference, budget constraints, and consumer choice.
True or false:Consumer theory is based on inferring what people dislike from their choices.
False
Consumer theory is based on inferring what people like from their ______.
choices
What are the three steps to understanding consumer behavior?
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What is denoted by the symbol ≻ in consumer theory?
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True or false: Consumer behavior can be understood in two steps: preference and budget constraints.
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Consumer behavior can be understood in three steps: preference, budget constraints, and consumer ______.
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What is strict preference denoted by?
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Consumers compare bundles of goods and decide if one is preferred over the other, or if they are ______.
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What is utility?
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What is utility?
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True or false: Consumers compare bundles of goods and decide if one is preferred over the other, or if they are indifferent.
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Strict preference is denoted by ≻, ______ by ∼, and weak preference by ⪰.
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Is utility subjective or objective?
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True or false: Strict preference is denoted by ∼.
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Are utility and usefulness synonymous?
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True or false: Utility is the satisfaction or pleasure derived from consuming a good or service.
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Is utility subjective?
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Relations between strict preference, weak preference, and ______ are related.
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Do utility and usefulness mean the same thing?
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Can utility differ at different times and places?
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Can utility differ at different times and places?
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True or false: Utility is objective and the same for everyone.
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Utility is the satisfaction or pleasure derived from consuming a good or ______.
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Do non-smokers derive any utility from cigarettes?
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Do non-smokers derive any utility from cigarettes?
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Non-smokers do not derive any utility from ______.
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True or false: Non-smokers derive utility from cigarettes.
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Study Notes
- Consumer theory is based on inferring what people like from their choices.
- Consumer behavior can be understood in three steps: preference, budget constraints, and consumer choice.
- Consumers compare bundles of goods and decide if one is preferred over the other, or if they are indifferent.
- Strict preference is denoted by ≻, indifference by ∼, and weak preference by ⪰.
- Relations between strict preference, weak preference, and indifference are related.
- Utility is the satisfaction or pleasure derived from consuming a good or service.
- Utility and usefulness are not synonymous.
- Utility is subjective and varies from person to person.
- Utility can differ at different times and places.
- Non-smokers do not derive any utility from cigarettes.
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Description
Test your understanding of consumer theory and behavior with this quiz! Learn about preferences, budget constraints, and consumer choice, and explore the concepts of strict preference, weak preference, and indifference. Discover how utility plays a role in consumer decisions and why it varies from person to person. See if you can ace this quiz and become a pro at analyzing consumer behavior!
