AP Microeconomics Practice Quiz: Marginal Analysis and Consumer Choice
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Test your understanding with short quizzes. This quiz has 16 questions to check your progress.
Question 1 of 16
All Questions (16)
A) Comparing the total benefits and total costs of an activity.
B) Comparing the additional benefit of an activity with its additional cost.
C) Ensuring all fixed costs are covered by revenue.
D) Maximizing the average benefit from an activity.
Correct Answer: B
Content 7 states, "Marginal analysis involves comparing the additional benefit of increasing a given activity with the additional cost." This focuses on the 'additional' or 'marginal' changes, not total or average values.
A) Minimize their total spending regardless of satisfaction.
B) Purchase goods only when their marginal utility is increasing.
C) Make choices to maximize their total utility.
D) Equally distribute their income among all available goods.
Correct Answer: C
Content 4 states, "In a model of rational consumer choice, consumers are assumed to make choices so as to maximize their total utility."
A) total utility decreases as more of a good is consumed.
B) the price of a good decreases as a consumer buys more of it.
C) the satisfaction from consuming an additional unit of a good eventually declines.
D) consumers' limited income reduces the total utility they can achieve.
Correct Answer: C
Content 5 states, "Consumers experience diminishing marginal utility in the consumption of goods and services." This means that each additional (marginal) unit consumed provides less satisfaction than the previous one.
A) the marginal benefit is greater than the marginal cost.
B) the total benefit is greater than the total cost.
C) the marginal cost is zero.
D) the marginal benefit is positive.
Correct Answer: A
Content 7 explains that comparing marginal benefit (MB) with marginal cost (MC) helps firms decide whether to increase production. An increase is the rational choice if MB > MC.
A) 28
B) 7
C) 4
D) 2
Correct Answer: C
Marginal utility is the change in total utility from consuming one more unit. The total utility from 3 slices is 24, and from 4 slices is 28. The marginal utility is the difference: 28 - 24 = 4. This is an application of content 1c.
A) buy more apples and fewer bananas.
B) buy more bananas and fewer apples.
C) continue to consume the current amounts as they are already maximizing utility.
D) buy fewer of both goods.
Correct Answer: B
To maximize utility, a consumer should compare the marginal utility per dollar (MU/P). For apples, MU/P = 20 utils / $2 = 10 utils per dollar. For bananas, MU/P = 12 utils / $1 = 12 utils per dollar. Since the marginal utility per dollar is higher for bananas, the consumer should reallocate their income by buying more bananas and fewer apples, as stated in content 6.
A) marginal cost that should be factored into the price of each ticket.
B) sunk cost that is irrelevant to the decision of how many movies to show.
C) marginal benefit because it improves the customer experience.
D) variable cost that changes with the number of movies shown.
Correct Answer: B
Content 8 states, "The optimal quantity at any point in time does not depend on fixed costs (sunk costs) or fixed benefits that have already been determined by past choices." The cost of the projector has already been incurred and cannot be changed, making it a sunk cost that is irrelevant to future operational decisions.
A) 2 hours
B) 3 hours
C) 4 hours
D) 5 hours
Correct Answer: C
According to content 9, the optimal quantity is achieved when marginal benefit is equal to marginal cost. For the 4th hour, MB ($10) equals MC ($10). For all previous hours, MB > MC, making them worthwhile. For the 5th hour, MB < MC, so it should not be undertaken.
A) Spend more on good Y and less on good X.
B) Spend more on good X and less on good Y.
C) Spend less on both goods.
D) Make no changes, as total utility is already maximized.
Correct Answer: B
Content 6 explains that consumers maximize utility by equating the marginal utility of the last dollar spent on each good. Since the marginal utility per dollar is higher for good X (15 > 10), the consumer gets more satisfaction per dollar from good X. They should increase consumption of X and decrease consumption of Y until the marginal utility per dollar is equal.
A) maximize marginal utility for every good consumed.
B) purchase the lowest-priced goods available.
C) maximize total utility from the combination of goods purchased.
D) save the largest possible portion of their income.
Correct Answer: C
Content 4 explicitly states that "consumers are assumed to make choices so as to maximize their total utility." While marginal utility is the tool used for decision-making, maximizing total utility is the ultimate goal.
A) 1 Taco and 3 Burritos
B) 3 Tacos and 2 Burritos
C) 1 Taco and 2 Burritos
D) 5 Tacos and 1 Burrito
Correct Answer: B
To solve this, we must find a combination that uses the $14 budget and equates the marginal utility per dollar (MU/P) for both goods. First, calculate MU/P for each. Tacos (P=$2): MU1/P=10, MU2/P=8, MU3/P=5. Burritos (P=$4): MU1/P=9, MU2/P=6, MU3/P=4. The combination of 3 Tacos and 2 Burritos costs 3($2) + 2($4) = $14, exhausting the budget. The MU/P of the 3rd taco is 5, and the MU/P of the 2nd burrito is 6. This is the point where the MU/P is most closely equated for a combination that uses the entire budget, consistent with content 3 and 6.
A) the marginal utility from the last unit consumed is at its maximum.
B) the marginal utility from the last unit consumed is zero.
C) the total utility per dollar spent is equal for all goods.
D) the marginal utility begins to diminish.
Correct Answer: B
Total utility increases as long as marginal utility is positive. It reaches its maximum point when the next unit consumed would provide zero marginal utility. At this point, consuming more would cause total utility to decrease. This is derived from the concepts of utility maximization (content 4) and diminishing marginal utility (content 5).
A) She should not purchase the coffee because the total benefit is unknown.
B) She should purchase the coffee because her marginal benefit exceeds the marginal cost.
C) She should not purchase the coffee because the marginal cost is too high.
D) She should purchase the coffee only if she has already paid a fixed entry fee to the cafe.
Correct Answer: B
Maria's marginal benefit (MB) is the value she places on the additional cup, which is $5. The marginal cost (MC) is the price, $4. Since MB ($5) > MC ($4), marginal analysis dictates that she should make the purchase. This applies the decision-making rule from content 1b and 7.
A) No, because the total cost is already high at $100.
B) No, because the average cost of the first 10 units is $10, which is more than the marginal cost of the 11th.
C) Yes, because the total benefit ($150) is greater than the total cost ($100).
D) Yes, because the marginal benefit of the 11th unit ($12) is greater than its marginal cost ($8).
Correct Answer: D
The decision to produce one more unit should be based only on the marginal benefit and marginal cost of that specific unit. The total and average costs/benefits of previous units are sunk and not relevant to the decision at the margin. Since MB ($12) > MC ($8), the 11th unit should be produced. This reinforces content 7 and 8.
A) Increase the activity level.
B) Maintain the current activity level.
C) Decrease the activity level.
D) Ignore the marginal cost and focus on total benefit.
Correct Answer: C
According to content 7, comparing MB and MC helps individuals decide whether to increase, decrease, or maintain their consumption. If the additional cost of the last unit was greater than its additional benefit, the consumer has gone past the optimal point and should reduce consumption to a level where MB is no longer less than MC.
A) The marginal utility from the last unit of each good is equal.
B) The total amount spent on each good is equal.
C) The marginal utility of the last dollar spent on each good is equal.
D) The total utility from each good is equal.
Correct Answer: C
Content 6 states that consumers maximize utility "by equating/comparing the marginal utility of the last dollar spent on each good." This is represented by the utility-maximizing rule: MUx/Px = MUy/Py. Option C is the conceptual way of stating this rule. The marginal utilities themselves (Option A) or the total amounts spent (Option B) do not need to be equal.