2. UTILITY ANALYSIS

1.Utility is a cause of

• a.satisfaction

• b.production

• c.distribution

• d.consumption

2.TU of the commodity is always

• a.positive

• b.negative

• c.zero

• d.constant

3.MU diminishes,as consumption of commodity

• a.increases

• b.decreases

• c.remain constant

• d.becomes zero

4.The utility derived from all units of the given commodity is called

• a.average utility

• b.place utility

• c.marginal utility

• d.total utility

5.if total utility of 10 mangoes is 120 and that of 11 mangoes is 125 ,the

MU is

• a.8

• b.5

• c.10

• d.15

6.There is direct relationship between the stock of the commodity and

• a.total utility

• b.marginal utility

• c.averge utility

• d.cardinal utility

7.As the stock of the commodity increases,the MU

• a.increases

• b.remains constant

• c.diminshes

• d.becomes maximum

8.A rational consumer equates MU with

• a. total utility

• b.price

• c.total satisfaction

• d.none of the above

9.The MU curve has a___________ slopes

• a.negative

• b.positive

• c.upward

• d.none of the above

10.Final use of the commodity is known as

• a.consumption

• b.production

• c.distributiom

• d.utility