Marginal/Cardinal Utility MCQ Quiz

1. Which one do you like?

A

B

C

D

Option D is the Equimarginal Principle just written differently.

Explanation

Option D is the Equimarginal Principle just written differently.

2. Which one do you like?

A

B

C

D

Individual gets 2 utils from each dollar spent. If price is 2 that means he derives 4 utils from buying good X. Hence, consumer needs to consume till the point where MUx is equal to 4 which happens at 4 units of consumption.

Explanation

Individual gets 2 utils from each dollar spent. If price is 2 that means he derives 4 utils from buying good X. Hence, consumer needs to consume till the point where MUx is equal to 4 which happens at 4 units of consumption.

3. Which one do you like?

A

B

C

D

MUx

Explanation

MUx

4. Which one do you like?

A

B

C

D

We did this in class already - you're welcome.

Explanation

We did this in class already - you're welcome.

5. Which one do you like?

A

B

C

D

To maximize utility, consumer needs to adjust consumption of both the goods until the marginal utility per dollar from each good is the same (equimarginal principle).

Explanation

To maximize utility, consumer needs to adjust consumption of both the goods until the marginal utility per dollar from each good is the same (equimarginal principle).