Grade XI Economics

Which of the following statement regarding utility is not true?

• It is satisfying of a commodity

• A utility is always miserable

• It helps a consumer to make choices

• It is purely a subjective entity

Which of the following utility approach is based on the theory of Alfred Marshall?

• Ordinal utility approach

• Cardinal utility approach

• Independent utility approach

• None of the above

How is total utility derived from the marginal utility?

• TUn+MU1+MU2+MU3

• TUn= MU1+MU2+MU3———+MUn

• TUn= MU1-- MU2 -- MU3———–MUn

• TU= ∆MU/∆Q

Which utility is added to the total utility by consuming one additional unit of the commodity?

• Ordinal Utility

• Total Utility

• Marginal Utility

• Average Utility

Define Utility.

• combination of two goods

• Maximum level of satisfaction

• The satisfaction received or expected to be acquired from the consumption of product and services.

• A balanced position where a consumer distributes his income between different goods

What does the law of diminishing marginal utility say?

• The difference between what the customers are want to pay for a product and what he is able to pay.

• Any addition in the consumption causes a decrease in marginal utility.

• A balanced position where a consumer distributes his income between different goods i

• The difference between what the customers are want to pay for a product and what he is able to pay.

Which of the following features define human needs:

• are not concurrent;

• do not disappear momentarily if they are satisfied

• are unlimited in capacity

• are unlimited in number

The total utility coincides with the marginal utility:

• for the first unit consumed

• only for the irrational consumer

• at the level of the last unit consumed;

• at the saturation point

Dr. Marshall is known as the Father of Economics.

• True

• False

In Marginal utility theory, marginal utility of money:

• Rises

• Constant

• Falls

• Rises and then falls