CHAPTER – 2

CHOOSE THE CORRECT ANSWER:

1. Consumer’s surplus is also known as

a) indifference surplus b) elasticity of supply c) buyer’s surplus d)
indifference surplus. (C)
2. At what point does total utility starts diminishing?
a) when marginal utility is positive b) when it remains constant c) when
marginal utility is increasing d) when marginal utility is negative.(D)
3. Which of the following is called Gossen’s first law?
a) Law of substitution b) Law of equal- marginal utility c) Law of diminishing
marginal d) None of the above (C)
4. 36. Which utility measuring approach, is utility ranked in order of preference, but
not measured?

(a) Cardinal. (b) Ordinal.(c) Both a & b (d) Variable approach. Ans. b

a) . (B)