Question : What formula is used to calculate marginal utility?

Option 1: MU/Q

Option 2: TU/Q

Option 3: Q/MU

Option 4: Q/TU

Question : Indifference curves are concave to the origin because of:

Option 1: Diminishing marginal utility

Option 2: Increasing marginal utility

Option 3: Constant marginal utility

Option 4: Zero marginal utility

Question : The consumer's equilibrium is attained at the point where:

Option 1: Marginal utility is zero

Option 2: Marginal utility is positive

Option 3: Marginal utility is equal to price

Option 4: Marginal utility is equal to income

Question : ______ is the change in total utility due to the consumption of one additional unit of a commodity.

Option 1: Product Utility (PU)

Option 2: Revenue Utility (RU)

Option 3: Demand Utility (DU)

Option 4: Marginal Utility (MU)

Question : In the cardinal utility approach, consumer's equilibrium is achieved when:

Option 1: Total utility is maximized.

Option 2: Marginal utility is maximized.

Option 3: Marginal utility equals zero.

Option 4: Marginal utility per dollar spent is equal across all goods.