Utility Analysis - 3

In which situation does a consumer experience ‘Extra-marginal units’?

• When Mux > Px

• When MUx < Px

• When Mux = Px

Aggregate units : _____ :: Additional unit : Marginal utility

• Total utility

• Combined utility

• Time utility

At point of satiety, MU is _______.

• Zero

• Negative

• Maximum

Which of the following statements is not true?

• Utility is an abstract concept.

• Utility differs from pleasure.

• Utility means usefulness.

• Measurement of utility is hypothetical.

Utility : Cause of consumption :: ______ : End result

• Happiness

• Disutility

• Satisfaction

______ : Intra-marginal units :: Mux = Px : Consumer’s equilibrium

• MUx < Px

• MUx > Px

• MUx is not equal to Px

Give economic term: Units which a consumer willingly buys because MU is greater than price

• Consumer's Equilibrium

• Intra-marginal units

• Extra-marginal units

Give economic term: Additional utility derived by a consumer from an additional unit of a commodity consumed

• Total utility

• Knowledge utility

• Time utility

• Marginal utility

Find the odd one:

• As total utility increases at diminishing rate, marginal utility decreases.

• When TU is maximum, MU = 0

• Initially, TU and MU are the same.

• When TU moves downward, MU becomes positive.

Utility differs from person to person : Subjective concept :: Utility differs from place to place : ______

• Relative concept

• Objective concept

• Place concept