Podar International School (Cambridge)

Seawoods, Nerul, Navi Mumbai

A Levels
Assignment 2
Name: Roll No:
Date: Subject: Economics

Answer the following questions:

Q1. A person’s total utility is schedule is given below. Derive marginal utility.
Units 0 1 2 3 4 5
TU 0 10 25 38 48 55

Q2. A person’s marginal utility is schedule is given below. Derive total utility.
Units 1 2 3 4 5 6
MU 9 6 4 2 0 -2

Q3. Calculate the missing figures:

Units 1 2 3 4 5
TU 16 - - - 40
MU - 12 8 6 -

Q4. A person’s total utility is schedule is given below. Derive marginal utility.
Units 0 1 2 3 4 5
TU 0 12 21 29 32 30

Q5. A person’s total utility is schedule is given below. Derive marginal utility.
Units 1 2 3 4 5 6
TU 4 7 9 10 10 8
Q6. A person’s marginal utility is schedule is given below. Derive total utility.
Units 1 2 3 4 5 6
MU 14 10 8 6 0 -2

Q7. Calculate the missing figures:

Units 1 2 3 4 5
TU 5 9 - 14 -
MU - - 3 - 1

Fill in the blanks with appropriate alternatives given in the bracket:

1. _________________ refers to want satisfying power of a commodity.

(Usefulness/ Utility/ Satisfaction/ Happiness)
2. Marginal utility diminishes, as consumption of commodity ________.
(increases/ decreases/ remains constant/ become zero)
3. _________________ utility is the utility derived from the last unit of the
commodity consumed. (Average/ Total/ Marginal/ Zero)
4. When MU is ______________ TU decreases. (positive/ negative/ zero/
high)
MCQs
Q1. Total utility curve
(a) Always rises
(b) First falls then rises
(c) Always falls
(d) First rises and then falls after reaching its maximum
Q2. Total utility is maximum when
(a) Marginal utility is zero
(b) Marginal utility is maximum
(c) Marginal utility increases
(d) Average utility is maximum

Q3. Marginal utility is

(a) Always zero
(b) Increases at a diminishing rate
(c) The utility derived from last unit
(d) All the above

Q4. Total utility is

(a) The sum total of marginal utilities
(b) Entire utility derived from whole consumption
(c) Increases at a diminishing rate
(d) All the above

Q5. When Total utility is increasing at an decreasing rate, marginal utility is

(a) Constant
(b) Negative
(c) Increasing
(d) Decreasing
Q6. At saturation point MU of a commodity is
(a) Positive
(b) Negative
(c) Zero
(d) Increasing

Q7. How we calculate marginal utility?

(a) ∆TU/∆Q
(b) ∆MU/∆Q
(c) ∆Q/∆TU
(d) ∆Q/∆MU
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