Utility & Demand Analysis Quiz

What is the definition of utility?

• The cost associated with producing a good

• The total amount of goods produced

• The power of a commodity to generate profit

• The power of a commodity or service to satisfy human want

Which of the following is NOT a characteristic of utility?

• Utility depends on the intensity of want

• Utility is psychological

• Utility is always individual and relative

• Utility can be expressed in numerical terms

What type of utility is created by changing the form of materials?

• Place Utility

• Time Utility

• Form Utility

• Service Utility

What does the law of diminishing marginal utility state?

• Utility increases with every additional unit consumed

• Total utility remains constant with increased consumption

• The additional benefit from consuming more of a good decreases

• Marginal utility is always positive

What is consumer surplus?

• The total utility derived from all goods consumed

• The maximum utility achievable by a consumer

• The difference between what a consumer is willing to pay and what they actually pay

• The total amount spent by a consumer

Which of the following methods is NOT used for demand forecasting?

• Qualitative Methods

• Random Sampling

• Statistical Methods

• Survey Methods

What does an indifference curve represent?

• The relationship between price and quantity demanded

• The maximum utility achievable from a single good

• The various combinations of two goods that yield equal satisfaction

• The total utility derived from multiple goods

What is the initial utility of the first unit of 'rasgulla' in the provided table?

• 52

• 15

• 28

• 38

Which type of utility is created by transporting goods?

• Service Utility

• Time Utility

• Place Utility

• Form Utility

What is the point of zero utility?

• When consumption leads to dissatisfaction

• When total utility is at its maximum

• When total utility is negative

• When marginal utility is zero