Utility Analysis - Finale

At point of satiety, TU is _______.

• Zero

• Negative

• Maximum

• Same as MU

Which of the following explains ‘Intra-marginal units'?

• Units which a consumer willingly buys because TU > Price

• Units which a consumer willingly buys because MU < Price

• Units which a consumer willingly buys because MU > Price

• Units which a consumer willingly buys because TU < Price

Sunshine : less value in exchange :: ______ : less value in use

• Air

• Diamond

• Water

Give economic term: When utility arises on transferring ownership of goods

• Knowledge utility

• Possession utility

• Service utility

• Place utility

Give economic term: Units at which a rational consumer is unwilling to buy where he has to pay more than MU

• Marginal units

• Intra-marginal units

• Extra-marginal units

Find the odd one:

• Measurement of utility is hypothetical.

• Utility is multi-purpose.

• Demand is the basis of utility.

• Utility is an abstract concept.

Give economic term: Utility created due to change in the shape or structure of an existing material

• Form utility

• Time utility

• Place utility

What is ‘marginal unit’?

• Unit at which MU is greater than market price

• Unit at which TU becomes equal to market price

• Unit at which MU becomes equal to market price

MUx < Px : Extra-marginal units :: ____ : Consumer’s equilibrium

• MUx = Px

• MUx > Px

• MUx < Px

Consumption beyond the point of satiety leads to which of the following?

• Ill effects due to consumption

• Total utility increases at a diminishing rate

• Transformation of satisfaction into dissatisfaction

• It creates disutility