Match List I with List II List I

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

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 :

Options:

A-I, B-II, C-III, D-IV

A-III, B-IV, C-I, D-II

A-III, B-I, C-IV, D-II

A-II, B-III, C-IV, D-I

Correct Answer:

A-III, B-IV, C-I, D-II

Explanation:

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