XI ECONOMICS TEST | MM:20
1. As Sakshi goes on consuming additional units of masala panipuri , her marginal utility on the golguppa
will :
a) Increases
b) Decreases
c) May increase or decrease
d) None of these
2. In the case Marshallian utility analysis , the consumer equilibrium in case of several commodities
attained at that point where :
3. What is meant by MU of one rupee?
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4. Which of the following statement is true in connection with marginal utility and total utility?
a) When MU is negative, TU increases at a diminishing rate.
b) When MU is falling but remains positive, the TU is decreasing.
c) When MU is zero, TU is maximum and constant.
d) MU and TU are proportionately increases as consumption increases.
5. Which of the following is not an assumption for the law of diminishing marginal utility ?
a) Homogenous units of the commodity consumed
b) Continuous consumption without the time gap
c) Constant marginal utility of money
d) Change of taste , preference and choice of the consumer.
6. Given the price of a good and income of the consumer, how will a consumer decide as to how much
quantity of the good the consumer will buy ? Use utility analysis with dia.
XI ECONOMICS TEST | MM:20
7. A consumer consumes only two goods, say good X and good Y. At a particular point of time Px = Rs. 5/-
and Py = Rs. 4/- and MUx = 50 utils and MUx = 48 utls. Is the consumer in equilibrium? If not what
mechanisms should be followed for the consumer equilibrium
8. State with reasons if the following statements are true or false:
1. At a grand family get-together party you go on eating and eating since you have not to pay.
2. As we consume more units of a commodity, our total utility from its consumption keeps falling.
3. Total Utility remains the same, whether Marginal Utility is positive or negative.
9. Read the following and answer the questions on the basis of the same: -
A consumer is an economic agent who uses goods and services for the direct satisfaction of his / her
wants. Consumer consists of institution, individuals and groups of individuals or households.
Consumer behavior refers to the way in which consumers spend their income. The consumer derives
utility from his expenditure. The consumer chooses his expenditures and maximums his utility with
XI ECONOMICS TEST | MM:20
the given income and given prices of goods and services.
Consumption of goods and services leads to satisfaction of human wants. This satisfaction is called
“Utility”. Utility may be defined as “satisfaction derived from the consumption of a commodity” or it
may be defined as “want-satisfying power of a commodity”. Total Utility (TU) It is the sum total of
utility derived from the consumption of all the units of a commodity. Marginal Utility (MU) It refers to
additional utility on account of the consumption of an additional unit of a commodity.
Q.(I) Utility in economics means: -
(a) Want satisfying power of a commodity
(b) Pleasure
(c) Happiness
(d) Usefulness
Q.(II) Marginal utility is: -
(a) Total minus average utility
(b) Addition to total utility
(c) Total plus average utility
(d) Total utility divided by the number of units
Q. (III) How is total utility derive from marginal utility?
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10. Define the relationship between TU and MU with an appropriate labeled diagram.
