consumer equilibrium

What does the term ‘marginal’ in economics mean?

• A) Additional

• B) Unimportant

• C) Minimum unit

• D) None of the above

Utility is generally related to?

• A) Satisfaction

• B) Necessary

• C) Useless

• D) Useful

Why are indifference curves convex to the origin?

• A) Two goods are perfect complementary goods.

• B) Two goods are imperfect substitutes.

• C) Two goods are perfect substitutes.

• D) None of the above

When the marginal utility is equal to zero, what will the total utility be?

• A) Maximum

• B) Laws of return

• C) Minimum

• D) None of the above

A consumer is in equilibrium when the marginal utilities are ___________ .

• A) Increasing

• B) Equal

• C) Minimum

• D) Highest

Why is a consumer’s spending restricted?

• A) Due to the utility maximisation

• B) Due to the budget constraint

• C) Due to the demand curve

• D) Due to the marginal utility

When MU is positive, what happens to TU?

• A) It decreases.

• B) It becomes the highest.

• C) It remains constant.

• D) It increases.

Who gave the cardinal concept of utility?

• (a) Marshall

• (b) Pigou

• (c) Hicks

• (d) Samuelson

Consumer’s behaviour is studied in:

• (a) Micro Economics

• (b) Macro Economics

• (c) Income Analysis

• (d) None of these

Question 3.

Which of the following statement is true ?

• (a) Utility means want-satisfying power

• (b) Utility is a function of intensity of desire

• (c) Desire of consumption gives birth to utility

• (d) All of these