MCQs on Theory of Consumer Behaviour

Consumer behaviour is a study about how the individual consumers, groups or organisations undergo the process of selection, purchase, usage and disposal of ideas, goods as well as services that will help to satisfy their wants and needs. This concept refers to the actions of consumers in a marketplace and their underlying motives behind those actions. The marketers expect that if they can understand the causes of a consumer buying a particular product or service, they can determine which products have more demand in the marketplace and how to present these items to the consumers.

We have collated a list of multiple-choice questions on the Theory of Consumer Behaviour below to help students gain a deeper insight into the topic.

1. Which of the following statements is true about consumer behaviour?
   1. Consumer behaviour is the study of microeconomics
   2. Consumer behaviour is the study of macroeconomics
   3. Consumer behaviour is the study of income analysis
   4. None of the above

Answer: a

2. Which of the following statements about utility is correct?
   1. One of the main characteristics of utility is that it is a relative concept
   2. One of the main characteristics of utility is that it is a subjective concept
   3. One of the main characteristics of utility is that it is a psychological phenomenon
   4. All of the above

Answer: d

3. Which of the following concepts is true?
   1. The ability to satisfy the human wants in a good or service is called its satisfaction
   2. The ability to satisfy the human wants in a good or service is called its productivity
   3. The ability to satisfy the human wants in a good or service is called its profitability
   4. The ability to satisfy the human wants in a good or service is called its utility

Answer: d

4. Which of the following statements is true about the law of equi-marginal utility?
   1. The law of equi-marginal utility is known as the law of decreasing utility
   2. The law of equi-marginal utility is known as the law of increasing utility
   3. The law of equi-marginal utility is known as the law of substitution
   4. The law of equi-marginal utility is known as the law of contribution

Answer: c

5. Which of the following statements about the addition of utilities is correct?
   1. The addition of utility that is obtained from all the units of a good or service is called the total utility
   2. The addition of utility that is obtained from all the units of a good or service is called the additional utility
   3. The addition of utility that is obtained from all the units of a good or service is called the marginal utility
   4. The addition of utility that is obtained from all the units of a good or service is called the maximum satisfaction

Answer: a

6. Which of the following statements is true?
   1. The capability of any commodity to satisfy human wants is known as utility
   2. The capability of any commodity to satisfy human wants is known as taste
   3. The capability of any commodity to satisfy human wants is known as consumption
   4. The capability of any commodity to satisfy human wants is known as quality

Answer: a

7. Which of the following about the relationship between marginal utility and price is correct?
   1. The marginal utility of a commodity or service must be equal to its price to ensure maximum satisfaction of the consumer
   2. The marginal utility of a commodity or service must be greater than its price to ensure maximum satisfaction of the consumer
   3. The marginal utility of a commodity or service must be lesser than its price to ensure maximum satisfaction of the consumer
   4. There is no relationship between the marginal utility of a commodity or service and its price

Answer: a

8. Which of the following is true about the relationship between total utility and marginal utility?
   1. The total utility of a product or service is maximum when the marginal utility is negative
   2. The total utility of a product or service decreases when the marginal utility is negative
   3. The total utility of a product or service increases at a decreasing rate when the marginal utility is negative
   4. None of the above

Answer: b

9. Which of the following statements about the demand curve is true?
   1. The slope of the demand curve is upward from left to right
   2. The slope of the demand curve is downward from left to right
   3. The slope of the demand curve is parallel to the X-axis
   4. The slope of the demand curve is parallel to the Y-axis

Answer: b

10. Which of the following statements is true?
    1. In the case of necessity goods, the fall in prices does not lead to an increase in demand
    2. In the case of comfort goods, the fall in prices does not lead to an increase in demand
    3. In the case of luxury goods, the fall in prices does not lead to an increase in demand
    4. None of the above

Answer: a

11. Which of the following statements about demand is correct?
    1. The main factor that affects the demand for a product or a service is its price
    2. The main factor that affects the demand for a product or a service is the change in income levels of the consumer
    3. The main factor that affects the demand for a product or a service is the taste of a consumer
    4. All of the above

Answer: d

12. Which of the following statements is correct?
    1. Goods that can be used alternatively to each other are known as substitute goods
    2. Goods that can be used alternatively to each other are known as comfort goods
    3. Goods that can be used alternatively to each other are known as complementary goods
    4. All of the above

Answer: a

13. The Law of Demand is a _______.
    1. Qualitative statement
    2. Quantitative statement
    3. Both a and b are correct
    4. Both a and b are incorrect

Answer: a

14. When the price of coffee rises, the demand for tea _____.
    1. Falls
    2. Rises
    3. Stays the same
    4. None of the above

Answer: b

15. Elasticity of demand is a ______.
    1. Qualitative statement
    2. Quantitative statement
    3. Both a and b are correct
    4. Both a and b are incorrect

Answer: b

Also See:

• Theory of Consumer Behaviour
• Consumer Awareness
• Consumer Surplus Formula
• Difference Between Customer and Consumer
• Consumer Protection Act Mcqs