Practice Test

Q1) Utility is ________ term. Show Answer

Q2) The human want satisfying power of a commodity is called ______. Show Answer

Q3) Utility can not be measured________. Show Answer

Q4) Utility depend upon the _____ of want. Show Answer

Q5) A rational consumer equates marginal utility with______. Show Answer

Q6) _______ Marginal utility is described as a point of satiety. Show Answer

Q7) The marginal utility curve slopes _______ from left to right. Show Answer

Q8) _______ Utility is the sum of all marginal utility derived from consumption of all units at a particular period of time. Show Answer

Q9) ________ Utility is the utility of last unit of consumption. Show Answer

Q10) There is a _______ relation between the stock of commodity and total utility. Show Answer

Q11) Total utility is maximum when marginal utility is _______. Show Answer

Q12) Marginal utility of money_____ be zero. Show Answer

Q13) As a person consume more and more unit of a mango, its TU increases at ______ rate. Show Answer

Q14) When TU is constant then MU is _______. Show Answer

Q15) Lager the stock, ______ the marginal utility. Show Answer

Q16) Greater the intensity of want, _______ will be its utility. Show Answer

Q17) When TU declines then MU is _______. Show Answer

Q18) The more a person has of a thing, the ______ he wants to have more of it. Show Answer

Q19) When units of a commodity is consumed successively, then its MU ________ . Show Answer

Q20) If TU of 10 apples is 110 and that of 11 apples is 115, then the marginal utility is __________. Show Answer

Q21) Negative utility is called _______. Show Answer

Q22) Human want satisfying power of a commodity is called ________. Show Answer

Q23) Utility is subjective and _______ concept. Show Answer

Q24) ________ is the utility created in a commodity due to change in time of utilisation. Show Answer

Q25) _______ is the utility created in commodity by changing the place of utilisation. Show Answer

Q26) ________ is the utility added in a commodity by changing its shape or structure. Show Answer

Q27) ________ is the utility derived from the personal services of doctors, lawyers, teachers etc. Show Answer

Q28) ______ is the utility derived due to the posession of a commodity. Show Answer

Q29) ________ refers to the sum total of utilities derived by a consumer from the consumption of all units of a commodity at a given time. Show Answer

Q30) ______ refers to the additional utility derived from the consumption of one more unit of a commodity at a given time. Show Answer

Q31) Marginal Utility ______ with increase in consumption. Show Answer

Q32) A consumer equates marginal utility with ______. Show Answer

Q33) ______ marginal utility is described as the point of satiety. Show Answer

Q34) _______ utility is the utility of last unit of consumption. Show Answer

Q35) When total utility falls, marginal utility will become _______. Show Answer

Q36) Marginal utility curve slopes ______. Show Answer

Q37) The utility derived from an additional unit is called _____ utility. Show Answer

Q38) Larger the stock ________ will be the marginal utility. Show Answer

Q39) When total utility is constant marginal utility is ______. Show Answer

Q40) Total utility curve slopes _______. Show Answer

Q41) The relationship between marginal utility and price helps to explain______. Show Answer

Q42) High price for gold is due to its high ________ utility. Show Answer

Q43) _______ is the basis of consumer demand. Show Answer

Q44) Cardinal measurement is a _______ expression. Show Answer

Q45) Total utility increases at a ______ rate. Show Answer

Q46) The law of diminishing marginal utility was fomulated by ________. Show Answer

Q47) Marginal utility of money can never be ______. Show Answer

Q48) Alcohol has utility to a _________. Show Answer

Q49) MU rises when the stock of a commodity______. Show Answer

Q50) According to critics, utility cannot be measured ______. Show Answer

Q51) Raincoats used during rainy season has _______ utility. Show Answer

Q52) When MU is zero, TU will be ________. Show Answer

Q53) Utility of a commodity changes from ________. Show Answer

Q54) The point at which T.U. is maximum and M.U. is zero is called point of ________. Show Answer

Q55) With every increase in the consumption, T.U. goes on increasing but at a diminishing rate, however M.U. goes on ______ right from the beginning. Show Answer

Q56) ______ and price forms the basis of the law of demand. Show Answer

Q57) Downward slope of the T.U. curve and negative slope of the M.U. curve both are _________. Show Answer

Q58) The purchasing power of one commodity measured in terms of other commodities is called _______. Show Answer

Q59) The law of DMU is useful to _______. Show Answer

Q60) The law of DMU is not applicable to ________. Show Answer

Q61) The utility created by blood banks is called________ utility. Show Answer

Q62) Point of satiety is reached when _______. Show Answer

Q63) According to the law of DMU, more you have of a commodity_______ . Show Answer

Q64) The capacity of a commodity to satisfy human want is known as ______. Show Answer

Q65) The law of equi-marginal utility is based on the law of _______. Show Answer

Q66) Utility is a _______ term. Show Answer

Q67) Utility means usefulness or satisfaction. Show Answer

Q68) Utility is the basis of consumers demand, though it has no moral of ethical importance. Show Answer

Q69) Utility is an objective concept but not a subjective concept. Show Answer

Q70) Utility is directly measurable cardinally, as per the critics. Show Answer

Q71) Law of D.M.U is applicable to money but not to stamp collection of rare collections. Show Answer

Q72) Moral consideration have significant place in the concept of utility. Show Answer

Q73) TU curve has a positive slope while MU has a negative slope. Show Answer

Q74) As consumption increases, MU increases and TU diminishes. Show Answer

Q75) TU is always positive, while MU may be positive, negative or zero. Show Answer

Q76) Price of a commodity is high when its marginal utility is high. Show Answer

Q77) A consumer buys a commodity only when its marginal utility equates to its price. Show Answer

Q78) There are no real exceptions to the Marshall's law of diminishing marginal utility. Show Answer

Q79) The larger the stock of a commodity, the higher is its marginal utility. Show Answer

Q80) When MU is maximum TU is equal to zero. Show Answer

Q81) TU increases with increase in consumption but at a diminishing rate. Show Answer

Q82) Fresh air, which is very useful, has a very high marginal utility. Show Answer

Q83) Gold has a less utility value since utility is a colourless term. Show Answer

Q84) Alcohol has no utility to a drunkard because it is harmful to him. Show Answer

Q85) Zero M.U is a point of satiety. Show Answer

Q86) Law of D.M.U is universally acceptable. Show Answer

Q87) Free goods have no utility. Show Answer

Q88) Form Utility increases when - a) dress stitched from cloth. b) change in the format of given material. c) river water diverted towards farm. d) pot made from clay. Show Answer

Q89) Blood donation is an example of - a) place utility b) knowledge utility c) service utility d) form utility Show Answer

Q90) With an increase in consumption of commodity, MU curve - a) slopes downward b) goes upward c) turns backward d) shows negative slope Show Answer

Q91) After a point of satiety, any additional consumption of commodity result into - a) negative MU b) diminishing TU c) disutility d) maximum TU Show Answer

Q92) What satisfying power of a commodity is called - a) usefulness b) satisfaction c) happiness d) utility Show Answer

Q93) Zero M.U is described as - a) disutility b) point of satisfy c) dis-satisfaction d) maximum T.U Show Answer

Q94) In the law of diminishing marginal utility, Alfred Marshall assumes that marginal utility of money_________. Show Answer

Q95) As per the law of diminishing marginal utility, measurement of utility is assumed to _______. Show Answer

Q96) MU of the commodity becomes negative when TU of a commodity is______. Show Answer

Q97) Point of satiety means ________. Show Answer

Q98) When MU is falling, TU is _______. Show Answer

Q99) Utility depends upon _______. Show Answer

Q100) When TU declines, MU _______. Show Answer

Q101) Consumer's equilibrium is attained when ________. Show Answer

Q102) Electricity can be used in Fan, TV, iron, computer, etc. because utility is _____. Show Answer

Q103) The sum of all marginal utilities from the consumption of a commodity is called ______. Show Answer

Q104) Statements true regarding features of utility.
i. Relative
ii. Objective concept
iii. Differs from pleasure
iv. Differs from satisfaction Show Answer

Q105) Statements incorrect regarding features of utility.
i. Basis of supply
ii. Objective concept
iii. Measurement is hypothetical
iv. Utility is multi-purpose Show Answer

Q106) This is not a type of utility.
i. Public utility
ii. Private utility
iii. Service utility
iv. Possession utility Show Answer

Q107) Statements indicating consumer equilibrium.
i. MU is greater than price
ii. MU is equal to price
iii. MU is less than price
iv. Price is less than one Show Answer

Q108) The point after which a rational consumes should stop his consumption.
i. Point of dissatisfaction
ii. Point of utility
iii. Point of satiety
iv. Point of maximity Show Answer

Q109) An assumption to the law of diminishing marginal utility.
i. Rationality
ii. Cardinal measurement
iii. Single want
iv. Divisibility Show Answer

Q110) Terms indicating exceptions to the law of diminishing marginal utility.
i. Addiction
ii. Money
iii. Pleasure
iv. Work Show Answer

Q111) This is a criticism to the law of DMU.
i. Cardinal measurement not possible
ii. Not useful to the government
iii. Not applicable to indivisible goods
iv. Basis of paradox of value Show Answer

Q112) Assertion (A): A knife has utility to cut vegetable and it can be used to harm someone.
Reasoning (R): Utility is a subjective concept. Show Answer

Q113) Assertion (A): Cardinal measurement of utility is not possible.
Reasoning (R): Utility is an abstract and psychological concept. Show Answer

Q114)
Assertion (A): Consumption beyond the point of satiety transforms satisfaction into dissatisfaction.
Reasoning (R): Total utility increases at a diminishing rate. Show Answer

Q115) Assertion (A): The law of DMU was first proposed by Prof. Alfred Marshall in his book.
Reasoning (R): Prof. Alfred Marshall’s book ‘Principles of Economics was published in 1890. Show Answer

Q116) Assertion (A): MU goes on diminishing with every successive increase in consumption of a commodity.
Reasoning (R): MU curve slopes upward from left to right. Show Answer

Q117) Assertion (A): Power is not a real exception to the law of DMU.
Reasoning (R): Power violates the assumption of rationality. Show Answer

Q118) Assertion (A): The hobby of coin collection is not a real exception to the law of DMU.
Reasoning (R): Hobby of coin collection violates the assumption of divisibility of goods. Show Answer

Q119) Assertion (A): The law of DMU is useful to the government.
Reasoning (R): The law of DMU helps the government in framing trade policy, pricing policy etc. Show Answer

Q120) Utility is the cause of consumption; __________ is the end result of consumption. Show Answer

Q121) Larger the stock of the commodity, __________ is the MU. Show Answer

Q122) Larger the stock of the commodity, ___________ is the TU. Show Answer

Q123) The law of diminishing marginal utility form the basis of law of __________. Show Answer

Q124) Units which a consumer willingly buys because MU is greater than price are called _______________. Show Answer

Q125) A rational consumer attains equilibrium where ___________. Show Answer