CONSUMER'S EQUILIBRIUM

When Marginal Utility is zero what happens to Total Utility?

• Became Zero
• Became Maximum
• Became Minimum
• None of these

When Total Utility Declines Marginal Utility

• Declines
• increases
• became zero
• became negative

Want satisfying power of a commodity is called

• Utility
• Demand
• Consumers equilibrium
• None of these

In which analysis Utility can be measured in numbers?

• Ordinal Analysis
• Cardinal Analysis
• Utility Analysis
• None of these

Marginal Utility

• is always positive
• is always negative
• can be positive or negative but not zero
• can be positive or negative or zero

Cardinal approach is

• Utility approach

• IC approach

A consumer is said to be in equilibrium when he is said to get

• maximum satisfaction

• maximum profit

According to the law of diminishing marginal utility, which of the following is true?

• Consuming more of a good will always make a consumer worse off

• Total satisfaction from a good increases at an increasing rate as more of the good is consumed

• The total satisfaction from consuming more of a good always decreases as consumption increases

• The satisfaction of consuming additional units of a good will decrease as consumption of the good increases

• When marginal utility decreases, total utility will also decrease

What is used to measure a consumer's entire satisfaction or happiness of a choice?

• Total utility

• Marginal cost

• Marginal utility

• Total Revenue

• Total costs

Which of the following best defines the term utility as it is used by economists?

• when a market allocates resources in a way that maximizes consumer and producer surplus

• the happiness or benefit a consumer experiences from a good

• the extra benefit a consumer experiences when buying a good for less than she was willing to pay

• the usefulness of a resource or factor of production to producers of a good

• when an input can be used efficiently by producers