10 Questions
What is the concept that represents the additional satisfaction a consumer gains from consuming one more unit of a good?
Marginal Utility (MU)
Which curve is conventionally assumed to slope downwards according to the text?
Marginal Utility Curve
What does the law of diminishing marginal utility state?
As the stock of a commodity increases, its marginal utility to the consumer decreases.
What concept is the summation of utilities derived from all the units of a good consumed by a consumer?
Total Utility (TU)
What is the resultant of dividing the total utility by the number of units of a good consumed?
Average Utility (AU)
Which of the following is considered a primary factor of production?
Land
What is the primary objective of production?
Satisfying human wants and needs
According to Edwood Buffa, what is production?
A process by which goods and services are created
What are the factors of production according to Marshall?
Land, Labour, Capital, Entrepreneurship
What does the term 'Land' include as a factor of production?
Earth’s surface and resources above and below the surface
Test your understanding of the Theory of Demand and Supply with this quiz on Total, Average, and Marginal Utility. Evaluate your knowledge of how the quantity of a good affects utility and the concepts of Total Utility (TU), Average Utility (AU), and Marginal Utility (MU).
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