Utility

In which analysis can utility be measured in definite numbers such as 1,2,3, etc

• Cardinal utility analysis

• Ordinal utility analysis

• Both option 1 & 2

• None of these

Ordinal concept of utility express utility in terms of :

• Units

• Level of satisfaction

• Constants

• None of these

When only 1 unit of the commodity is consumed

• MU=TU

• MU>TU

• MU<TU

• None of these

When marginal utility is negative, total utility is

• Zero

• Diminishing

• Maximum

• Minimum

When total utility is maximum, marginal utility becomes:

• Zero

• Unity

• Positive

• Negative

When TU is increasing at a diminishing rate , MU must be:

• Increasing

• Decreasing

• Constant

• Negative

Initially MUx/Px=MUy/Py. With a fall in the price of Y, the consumption of the commodity Y:

• Diminishes

• Increases

• Remains constant

• Becomes zero

With the increase in consumption by one unit of the commodity, TU increases from 150 to 180, then MU is

• 50

• 1.2

• 30

• 0.833

A consumer will purchase more of good- X then good -Y, only when

• MUx/Px=MUm

• MUx/Px<MUy/Py

• MUy/Py=MUm

• MUx/Px>MUy/Py

The rate at which TU change in indicated by

• MU

• TU

• Both option 1&2

• None of the above