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Home Questions 3C598DGJ9U
Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Two columns are given. Colum I and Column II , each having some statements. Match statements in column I to that in column II.

i. Total utility a. Total satisfaction derived from consuming the given amount of some commodity
ii. Cardinal analysis b. Utility can be measured in numbers
iii. Marginal utility c. Utility obtained from consuming one additional unit
iv. Ordinal Analysis d.  Satisfaction from consumption can be ranked
Options:

i-a, ii- b, iii-c , iv-d

i-a, ii-b, iii-d, iv-c

i-c, ii-d, iii-b, iv-a

i-d, ii-a, iii-b, iv-c

Correct Answer:

i-a, ii- b, iii-c , iv-d

Explanation:

Total utility (TU) is the total satisfaction derived from consuming the given amount of some commodity x. Marginal utility (MU) is the change in total utility due to consumption of one additional unit of a commodity. Cardinal utility analysis assumes that level of utility can be expressed in terms of numbers. For example, we can measure the utility derived from a shirt and say, this shirt gives me 50 units of utility. In ordinal utility, we can rank various alternative combinations in terms of having more or less utility.

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