Consumer’s equilibrium

Which of the following must be true when the marginal is negative?

• The average is positive

• The average is negative.

• The total is decreasing.

• The total is negative.

Utility is generally related to?

• Satisfaction

• Necessary

• Useless

• Useful

When the marginal utility is equal to zero, what will the total utility be?

• Maximum

• Laws of return

• Minimum

• None of the above

Why is a consumer’s spending restricted?

• Due to the utility maximisation

• Due to the budget constraint

• Due to the demand curve

• Due to the marginal utility

Who gave the cardinal concept of utility?

• Marshall

• Hicks

• Pigou

• Robinson

Which of the following is characteristics of utility

• Utility is a psychological concept

• Utility is subjective

• Utility is a relative concept

• All of these

MU is

• TU/Q

• Change in TU/ change in quantity

• Change in quantity/ change in TU

• MU/Q

Consumer equilibrium is

• MUx = price of X

• MUx >Px

• MUX<Px

• All of the above

If TU of 10 units is 100 and TU of 15 units is 150 than calculate MU

• 10

• 50

• 20

• 25

Why are indifference curves convex to the origin?

• Two goods are perfect complementary goods.

• Two goods are imperfect substitutes.

• Two goods are perfect substitutes.

• None of the above