Chp-2

Question 1

In the law of diminishing marginal utility Alfred Marshall assumes that marginal utility of money..?

Answer 1

Remains constant

Question 2

As per the law of DMU measurement of utility is assumed to

Answer 2

Cardinal

Question 3

Mu of the commodity becomes negative when Tu commodity is

Answer 3

Falling

Question 4

Point of Satiety means

Answer 4

TU is maximum and Mu is zero

Question 5

When mu is falling tu is

Answer 5

Rising

Question 6

Time utility – transport
Place utility – blood bank
Service utility – mobile phone
Knowledge utility – doctor

Answer 6

Time utility – blood bank
Place utility - transport
Service utility – doctor
Knowledge utility – mobile phone

Question 7

Statement indicating consumer equilibrium

Answer 7

MU is equal to price

Question 8

Salma purchase sweater for her father in winter season

Answer 8

Time Utility

Question 9

Nilesh purchased ornaments for his sister

Answer 9

Possession utility

Question 10

Kavita consumed five units of oranges one after the other

Answer 10

Total utility

Question 11

Bhushan refused to eat 5th chapati after eating four chapatis

Answer 11

Point of Satiety

Question 12

Lalita satisfied her want of writing on essay by using pen and notebook

Answer 12

Utility