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MEFA - Quiz 1.2. LAWS OF CONSUMPTION

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.
  1. 1. Law of Equi-Marginal Utility states that Consumer is in equilibrium when the marginal utility obtain from the products bought are equal…..

a)

Yes

b)

No

2.
  1. 2. Scope of Economic broadly comprises

a)

Consumption

b)

Production

c)

Exchange

d)

Distribution

e)

all of the above

3.
  1. 3. Basic Laws of consumption deals with the salient aspects of human behavior.....

a)

Yes

b)

No

4.
  1. 4. Marginal utility derived on the consumption of every additional unit goes on diminishing

a)

Yes

b)

No

c)

May be

d)

None of the above

5.
  1. 5. Law of Equi-Marginal utility arises when the Consumer maximizes his total utility by allocating his income among the goods and services available to him

a)

Yes

b)

No

c)

May

d)

Non of the above

6.
  1. 6. Demand for a product or service is said to have demand when the conditions are satisfied

a)

A. Desire for specific commodity

b)

B. Willingness to pay for it

c)

C. Ability to pay for certain price

d)

D. All of the above

7.
  1. 7. Every want supported by the willingness and ability to buy constitutes demand for a particular product or service

a)

Yes

b)

No

8.

  1. 8. What is the law of diminishing marginal utility?

a)

It states that the additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service decreases as the quantity consumed increases.

b)

It states that the additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service increases as the quantity consumed increases.

9.

  1. 9. What is the equilibrium of a consumer in economics?

a)

It is when the marginal utility obtained from the products bought are equal.

b)

It is when the marginal utility obtained from the products bought are not equal.

10.
  1. 10. No Demand. When the target consumers are either not aware of the product or they are not interested in the product.

a)

Yes

b)

No