NCLEX PN CERTIFICATION REVIEW SET 2026 ANSWERS GUARANTEED PASS

ECON 1010 INTRODUCTION TO
MICROECONOMICS TEST BANK
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
GRADED A+

⩥ If a product has a diminishing but positive marginal utility, then:
A. a reduction in consumption by one unit will increase total utility.
B. the product cannot be an inferior good.
C. total utility increases at a diminishing rate.
D. total utility decreases at a diminishing rate.. Answer: C


⩥ If total utility is increasing, marginal utility:
A. is positive, but may be either increasing or decreasing.
B. must also be increasing.
C. may be either positive or negative.
D. must be increasing at an increasing rate. Answer: A


⩥ According to the law of diminishing marginal utility, the marginal
utility associated with
consuming successive units of a good will:
A. increase as the amount consumed decreases.

,B. remain constant as the amount consumed increases.
C. eventually decline as the amount consumed increases.
D. eventually increase as the amount consumed increases.. Answer: C


⩥ The law of diminishing marginal utility states that:
A. total utility is maximized when consumers obtain the same amount of
utility per unit of each
product consumed.
B. beyond some point additional units of a product will yield less and
less extra satisfaction to a
consumer.
C. price must be lowered to induce firms to supply more of a product.
D. it will take larger and larger amounts of resources beyond some point
to produce successive
units of a product. Answer: B


⩥ A consumer's demand curve for a product is downward sloping
because:
A. total utility falls below marginal utility as more of a product is
consumed.
B. marginal utility diminishes as more of a product is consumed.
C. time becomes less valuable as more of a product is consumed.
D. the income and substitution effects precisely offset each other.
Answer: B

,⩥ The theory of consumer choice assumes:
A. that consumers behave rationally, maximizing their satisfactions.
B. that the consumer has a limited income.
C. that consumers know how much marginal utility they obtain from
successive units of various
products.
D. all of these. Answer: D


⩥ When a consumer is maximizing total utility,
A. the average utility from each dollar spent is the same.
B. total utility cannot be increased by reallocating expenditures among
various products.
C. the total utility obtainable from each product is at a maximum.
D. the marginal utility of the last unit of each product purchased is zero..
Answer: B


⩥ A consumer having a limited budget will maximize utility or
satisfaction when the:
A. ratios of the marginal utility of each product purchased divided by its
price are equal.
B. total utility derived from each product purchased is the same.
C. marginal utility of each product purchased is the same.

, D. price of each product purchased is the same. Answer: A


⩥ Consider Janice's consumption of wine and cheese. Suppose that the
price of wine she buys
is equal to the price of cheese she buys. If Janice is a rational consumer,
then we know that:
A. she buys equal quantities of each good.
B. she buys unequal quantities of each good.
C. the marginal utilities per dollar of the quantities she buys are equal.
D. the marginal utilities of the quantities she buys are unequal. Answer:
C


⩥ Rosenbaum is purchasing products C and D in utility-maximizing
amounts. If the price of C
is $4 and the price of D is $2, then:
A. the marginal utility of D is twice that of C.
B. the marginal utility of D is the same as that of C.
C. the marginal utility of C is twice that of D.
D. the marginal utility of C is four times that of D. Answer: C


⩥ A consumer is in equilibrium and is spending income in such a way
that the marginal utility
of product X is 40 units and Y is 16 units. The unit price of X is $5. The
price of Y is: