MCQ Chapter 2 Economics Class 12 Maharashtra Board Utility Analysis 1. What is time utility?Utility from changing a commodity’s placeUtility from using a commodity at a specific timeUtility from acquiring knowledgeUtility from transferring ownershipQuestion 1 of 202. What does total utility (TU) represent?Utility from the last unit consumedAggregate utility from all units consumedUtility from a single unitNegative utility from consumptionQuestion 2 of 203. What is marginal utility (MU)?Total satisfaction from all unitsAdditional utility from an extra unit consumedUtility from the first unit consumedConstant utility across all unitsQuestion 3 of 204. What is the formula for total utility (TU)?TU = MUn – MU(n–1)TU = MU × PriceTU = MU1 + MU2 + MU3 + … + MUnTU = MU ÷ PriceQuestion 4 of 205. How is marginal utility (MU) calculated?MUn = TUn – TU(n–1)MUn = TUn + TU(n–1)MUn = TU ÷ PriceMUn = TU × PriceQuestion 5 of 206. At what point does total utility reach its maximum?When marginal utility is negativeWhen marginal utility is zeroWhen marginal utility is increasingWhen marginal utility equals total utilityQuestion 6 of 207. What happens to total utility when marginal utility is negative?It increasesIt remains constantIt decreasesIt becomes zeroQuestion 7 of 208. What is the point of satiety?When TU is rising and MU is fallingWhen TU is maximum and MU is zeroWhen TU is falling and MU is negativeWhen MU is rising and TU is constantQuestion 8 of 209. Why should a rational consumer stop consumption at the point of satiety?To avoid negative utilityTo increase total utilityTo maintain constant marginal utilityTo reduce market priceQuestion 9 of 2010. What does a downward-sloping marginal utility curve indicate?Increasing marginal utilityDecreasing marginal utilityConstant marginal utilityNegative total utilityQuestion 10 of 2011. Who discussed the law of diminishing marginal utility in detail?J.R.HicksR.G.D.AllenAlfred MarshallProf.GossenQuestion 11 of 2012. What does the law of diminishing marginal utility state?Marginal utility increases with more consumptionMarginal utility decreases as consumption increasesTotal utility remains constantMarginal utility is always zeroQuestion 12 of 2013. What is assumed about the consumer in the law of diminishing marginal utility?The consumer is irrationalThe consumer is rationalThe consumer ignores satisfactionThe consumer has unlimited resourcesQuestion 13 of 2014. What does the law assume about utility measurement?It is ordinalIt is cardinalIt is not measurableIt depends on priceQuestion 14 of 2015. What is assumed about the units of a commodity in the law?They are heterogeneousThey are homogeneousThey vary in sizeThey are indivisibleQuestion 15 of 2016. What does the continuity assumption in the law imply?Units are consumed with time gapsUnits are consumed in quick successionConsumption is interruptedConsumption depends on price changesQuestion 16 of 2017. What is assumed about the size of commodity units?They are unreasonably largeThey are reasonably sizedThey are too small to measureThey vary significantlyQuestion 17 of 2018. What remains constant according to the law’s assumptions?Consumer income and tastesMarket pricesCommodity qualityConsumer ageQuestion 18 of 2019. What is assumed about the commodity’s divisibility?It is indivisibleIt is divisible into small quantitiesIt is consumed in bulkIt is not consumedQuestion 19 of 2020. What does the law assume about the want being satisfied?Multiple wants are satisfiedA single want is satisfiedWants are unlimitedWants are recurringQuestion 20 of 20 Loading...
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