Consumer Behavior

Utility is the power of ....

• Buying goods

• Satisfying human wants

• Verifying goods

• Consuming goods

Units of utility is ....

• Rs

• Kg

• Quintals

• Utils

Marginal utility is the utility obtained by .....

• consumption of each unit

• consumption of two units

• Total consumption

• Consumption of first unit

An indifference curve is combination of the points showing .....

• Different satisfaction

• More satisfaction

• Less satisfaction

• Equal satisfaction

Total utility is the ......

• Difference of each marginal utility

• Sum of each marginal utility

• Multiplication of each marginal utility

• Division of each marginal utility

A budget line is the combination of ....

• Goods

• Satisfaction

• Different level of expenditure

• Different level of satisfaction

Consumer's equilibrium is that state of consumer where he maximizes .....

• Expenditure

• Consumption

• Profit

• Satisfaction or utility

Consumer's equilibrium is maintained at the point where ....

• Budget line cuts indifference curve

• Budget line is tangent to indifference curve

• Budget line is convex to origin

• Budget line is parallel to indifference curve

The point of consumer's equilibrium informs about ....

• 1. The volume of money spent by consumer

• 2. Quantity purchased of each commodity

• Answer 1 and 2 both are true

• Answer 1 and 2 both are false

If MRS(marginal rate of substitution) is constant then the nature of IC is ...

• Convex to origin

• Concave to origin

• Straight line

• Passes through origin