MCQ Chapter 2 Economics Class 12 Maharashtra Board Utility Analysis 1. What happens to marginal utility when consumption continues beyond the point of satiety?It becomes positiveIt becomes negativeIt remains zeroIt increasesQuestion 1 of 202. Why does the law not apply to hobbies like stamp collecting?They follow the homogeneity assumptionAdditional units increase marginal utilityThey are consumed continuouslyThey are divisibleQuestion 2 of 203. Why is a miser an exception to the law?Money’s marginal utility decreases for a miserMoney’s marginal utility increases with more moneyA miser follows rational behaviorA miser consumes homogeneous unitsQuestion 3 of 204. Why does the law not fully apply to addictions?Addictions follow the continuity assumptionMarginal utility may increase with consumptionAddictions are rational behaviorsAddictions involve divisible unitsQuestion 4 of 205. Why is power considered an exception to the law?Power follows the homogeneity assumptionDesire for power increases with more powerPower is consumed continuouslyPower is divisibleQuestion 5 of 206. What is a criticism of the law regarding its assumptions?They are realistic and practicalThey are unrealistic and hard to fulfillThey are universally acceptedThey are based on ordinal measurementQuestion 6 of 207. Why is cardinal measurement a criticism of the law?Utility is easily measured numericallyUtility is a psychological concept, not measurableUtility is measured ordinallyUtility depends on priceQuestion 7 of 208. Why does the law not apply to indivisible goods?They are consumed continuouslyThey are purchased in single unitsThey are divisibleThey follow homogeneityQuestion 8 of 209. What is a criticism regarding marginal utility of money?It is assumed to be constantIt is assumed to vary significantlyIt is unrelated to the lawIt is measurable ordinallyQuestion 9 of 2010. Why is the law criticized for focusing on a single want?It accounts for multiple wantsConsumers satisfy many wants at onceWants are always singleWants are not relevantQuestion 10 of 2011. How is the law useful to consumers?It sets market pricesIt helps diversify consumption for maximum utilityIt determines commodity qualityIt regulates demandQuestion 11 of 2012. How does the law assist the government?It determines consumer incomeIt aids in framing policies like taxationIt regulates commodity productionIt measures satisfactionQuestion 12 of 2013. What is the paradox of values based on the law?Goods with high utility have low priceGoods with high value-in-use have low value-in-exchangeAll goods have equal utilityUtility is unrelated to valueQuestion 13 of 2014. How does the law relate to the law of demand?Demand increases as marginal utility increasesConsumers buy more at lower prices due to diminishing MUDemand is unrelated to utilityDemand depends on total utility aloneQuestion 14 of 2015. What are intra-marginal units in consumption?Units where MU equals priceUnits where MU is greater than priceUnits where MU is less than priceUnits not consumedQuestion 15 of 2016. What is the marginal unit in consumer equilibrium?Where MU is greater than priceWhere MU equals priceWhere MU is less than priceWhere MU is negativeQuestion 16 of 2017. What are extra-marginal units?Units where MU is greater than priceUnits where MU is less than priceUnits where MU equals priceUnits with zero utilityQuestion 17 of 2018. When does a rational consumer achieve equilibrium?When MUX > PXWhen MUX = PXWhen MUX < PXWhen MUX is negativeQuestion 18 of 2019. What happens to total utility when marginal utility is falling but positive?It decreasesIt remains constantIt increasesIt becomes negativeQuestion 19 of 2020. Why is the law of diminishing marginal utility considered universal?It applies only to specific commoditiesIt is based on common consumer behaviorIt has no exceptionsIt is unrelated to consumptionQuestion 20 of 20 Loading...
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