GURUKUL

Economics Test Chpt. 2

Q.1 Fill in the blanks :- 5 marks

1) When MU is falling, TU is ………..
2) In the law of diminishing marginal utility, Alfred Marshall assumes that marginal utility
of money is ……….
3) ………… explains a consumer’s behaviour in relation to maximization of satisfaction.
4) Utility is a cause of consumption, …………. is the end result of consumption.
5) Point of satiety means …………

Q.2 Identify the following concepts : (any 2) 4marks

1) Bhushan refused to eat fifth chapati after eating four chapatis.
2) Kavita consumed an additional unit of bread to satisfy her hunger.
3) Rohan created a jewellery box out of pieces of wood.

Q.3 Distinguish betweeen : (any 2). 4 marks

1) Total utility and marginal utility
2) Time utility and Place utility
3) Utility and Satisfaction

Q.4 Answer the following : ( any 2). 8 marks

1) State the features of utility.
2) State the relationship between marginial utility and price.
3) State the significance of law of Diminishing Marginal Utility.

Q.5 State with reasons whether you agree or disagree with the following statements ;
4 marks
1) When total utility is maximum, marginal utility is zero.