Match List I with List II
| List I | List II | ||
| A. | Cardinal utility analysis | I. | Ratio of prices of two goods |
| B. | Ordinal utility analysis | II. | Marginal rate of substitution |
| C. | Slope of Budget line | III. | Utility measured in utils |
| D. | Slope of Indifference curve | IV. | Ranking of consumer preferences |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : A-III, B-IV, C-I, D-II
- A. Cardinal utility analysis refers to measuring utility in absolute numbers or "utils," so it matches with III. Utility measured in utils.
- B. Ordinal utility analysis refers to ranking preferences rather than measuring in absolute numbers, so it matches with IV. Ranking of consumer preferences.
- C. Slope of Budget line is determined by the ratio of the prices of two goods, so it matches with I. Ratio of prices of two goods.
- D. Slope of Indifference curve is related to the marginal rate of substitution, so it matches with II. Marginal rate of substitution.
| List I | List II | ||
| A. | Cardinal utility analysis | III.Utility measured in utils | |
| B. | Ordinal utility analysis | IV.Ranking of consumer preferences | |
| C. | Slope of Budget line | I.Ratio of prices of two goods | |
| D. | Slope of Indifference curve | II.Marginal rate of substitution | |