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Test on Consumers Equilibrium-Cardinal Approach

The document consists of two sets of questions for Class XI Economics students focusing on the concept of consumer equilibrium using the cardinal approach. It includes multiple-choice questions, short answer questions, and problem-solving scenarios related to marginal utility and consumer behavior. The questions aim to assess students' understanding of utility analysis and consumer decision-making processes.

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23 views

Test on Consumers Equilibrium-Cardinal Approach

The document consists of two sets of questions for Class XI Economics students focusing on the concept of consumer equilibrium using the cardinal approach. It includes multiple-choice questions, short answer questions, and problem-solving scenarios related to marginal utility and consumer behavior. The questions aim to assess students' understanding of utility analysis and consumer decision-making processes.

Uploaded by

dev
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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AMITY INTERNATIONAL SCHOOL

SUBJECT: ECONOMICS
CLASS XI
CHAPTER – CONSUMER EQUILIBRIUM (Cardinal Approach)
SET –A
TIME: 20 MINS MAX.MARKS: 10

Q1. With the increase in consumption by one unit of the commodity, TU increases from 150 to
180, and then marginal utility is:
(a) 50 (b) 1.2
(c) 30 (d) 0.833

Q2. The principal limitation of utility analysis relates to the basic assumption that utility can be
expressed in terms of: (1)
(a) cardinal numbers (b) ordinal numbers
(c) both (a) and (b) (d) none of these

Q3. State the law of diminishing marginal utility. (1)


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Q4. Given price of a good, how does a consumer decide as to how much of that good to buy? (3)
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Q5. A consumer consumes only two goods X and Y whose prices are Rs. 4 and Rs. 5
respectively. If the consumer chooses a combination of the two goods with marginal utility of X
equal to 5 and that of Y equal to 4, is the consumer in equilibrium. Give reasons. What will a
rational consumer do in this situation? Use utility analysis. (4)
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AISMV/SR-20/ECO/CT Page 2
AMITY INTERNATIONAL SCHOOL
SUBJECT: ECONOMICS
CLASS XI
CHAPTER – CONSUMER EQUILIBRIUM (Cardinal Approach)
SET –B
TIME: 20 MINS MAX.MARKS: 10

𝑀𝑈𝑥 𝑀𝑈𝑦
Q1. Initially = , With a fall in the price of Y, the consumption of the commodity-Y: (1)
𝑃𝑥 𝑃𝑦
(a) diminishes (b) increases
(c) remains constant (d) becomes zero

Q2. When marginal utility is negative, total utility is: (1)


(a) zero (b) diminishing
(c) maximum (d) minimum

Q3. State true or false: (1)


Any consumption beyond the satiety leads to disutility.
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Q4. A consumer consumes only two goods. What are the conditions of consumer equilibrium in
the utility approach? Explain the changes that will take place if the consumer is not in
equilibrium. (3)
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Q5. Following is the total utility schedule of Mr. X: (4)
Units of Commodity-X 1 2 3 4 5 6 7

TUx (Units) 20 37 51 61 66 66 54

(i) Derive MU schedule.

AISMV/SR-20/ECO/CT Page 2
(ii) Find out the level of consumption at which Mr. X reaches the saturation point.
(iii)How many units should the consumer purchase to maximise satisfaction when the price
of the commodity is Rs.5? (Assume that utility is expressed in utils and 1 util = Rs.2).
Give reasons for your answer.
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