UNIT 2 – THEORY OF CONSUMER BEHAVIOUR

QUESTION BANK

Section A (Short Answer)

1. Define Law of Diminishing Marginal Utility

2. What do you mean by utility approach?

3. What do you mean by total utility?

4. Define marginal utility

5. Explain price line/budget line

6. What do you mean by consumer surplus?

7. Expand MRS

8. Define consumer sovereignty.

Section B (Short note)

9. Properties of indifference curve

10. Exception of law of diminishing marginal utility

11. Uses or significance of law of equi-marginal utility

12. Assumptions and limitations law of diminishing marginal utility

13. Explain few limitations of consumer sovereignty

Section C (Essay type)

14. Law of diminishing marginal utility its exceptions, limitations and uses

15. Law of equi- marginal utility its assumptions and uses

16. Indifference curve approach and its properties

*************