Consumer’s Equilibrium — Utility Analysis MCQ — Class 11

Test your understanding of Consumer’s Equilibrium — Utility Analysis with 20 free questions across Easy and Moderate. Hard and Extreme require Premium. Choose a level in the interactive quiz to answer questions and review explanations.

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Key concepts to revise

Utility

Utility: the want-satisfying power of a commodity for a consumer

Cardinal utility

Cardinal utility: the approach that assumes utility can be measured numerically in units such as utils

Total utility

Total utility: the total satisfaction obtained from consuming all units of a commodity

Marginal utility

Marginal utility: the change in total utility caused by consuming one additional unit of a commodity

Law of diminishing marginal utility

Law of diminishing marginal utility: as consumption of a commodity increases, marginal utility tends to decline, other things remaining the same

TU–MU relation while MU is positive

TU–MU relation while MU is positive: total utility rises as long as marginal utility remains positive

TU maximum when MU is zero

TU maximum when MU is zero: total utility reaches its maximum when marginal utility becomes zero

TU falls when MU is negative

TU falls when MU is negative: negative marginal utility reduces total utility

Single-commodity consumer equilibrium

Single-commodity consumer equilibrium: the consumer is in equilibrium when marginal utility in money terms equals the price, subject to diminishing marginal utility

Law of equi-marginal utility

Law of equi-marginal utility: with several goods, satisfaction is maximised by allocating expenditure so marginal utility per rupee is equal across goods

Try these sample MCQs

1. Which concept best matches this situation? A glass of water gives satisfaction to a thirsty consumer.

  1. Cardinal utility
  2. Utility
  3. Marginal utility
  4. TU maximum when MU is zero
Check answer and explanation

Utility. Utility: the want-satisfying power of a commodity for a consumer

2. Which concept best matches this situation? A consumer assigns 20 utils to one unit and 15 utils to the next.

  1. Total utility
  2. Law of diminishing marginal utility
  3. Cardinal utility
  4. TU falls when MU is negative
Check answer and explanation

Cardinal utility. Cardinal utility: the approach that assumes utility can be measured numerically in units such as utils

3. Which concept best matches this situation? Utility from four units taken together is measured.

  1. Marginal utility
  2. TU–MU relation while MU is positive
  3. Single-commodity consumer equilibrium
  4. Total utility
Check answer and explanation

Total utility. Total utility: the total satisfaction obtained from consuming all units of a commodity

After the quiz

Write down the concepts you missed. Explain each one in your own words, give an example, and attempt the level again without notes. A high score on a short quiz does not replace revision of the whole chapter.

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