10 Questions
What are units called when the marginal utility is greater than the price?
Intramarginal units
What term is used for the unit at which the marginal utility becomes equal to the market price?
Marginal unit
Why is the Union Budget considered important?
It affects production, income distribution, and resource utilization
What happens to the marginal utility as the consumer consumes further units of x?
It decreases at a diminishing rate
At what point does the total utility start to decline and the marginal utility becomes negative?
Point of satiety
What is the implication of consumption beyond the point of satiety?
It transforms satisfaction into dissatisfaction
What does the law of diminishing marginal utility assume about the commodity consumed?
It assumes all units of the commodity are consumed in quick succession without any lapse of time.
What does the law of diminishing marginal utility assume about the utility derived from each unit of a commodity?
It can be cardinally or numerically measured.
What aspect of the commodity consumed does the law of diminishing marginal utility assume to be of reasonable size?
The size of all units consumed, neither too big nor too small
What characteristic does the law of diminishing marginal utility assume about all related factors like income, tastes, habits, choices, likes, and dislikes of a consumer?
They remain constant
Test your knowledge about consumer awareness and utility law with this quiz. Explore concepts such as marginal utility, market price, and consumer behavior.
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