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Questions
Define or explain the following concept:
Total utility
Define total utility.
Solution
Total utility refers to the aggregate utility, or the summation of utility, derived from the consumption of all the units of a commodity i.e. total utility is the sum of marginal utility. Algebraically,
TUn = MU1 + MU2 + MU3 +..............+ MUn = ∑MU
RELATED QUESTIONS
Explain the relationship between Total utility and Marginal utility.
Answer the following question :
Explain the relationship between ‘total utility’ and ‘marginal utility’.
State whether the following statements are TRUE or FALSE:
Marginal utility increases with increase in consumption.
State whether the following statements are TRUE or FALSE:
In deficit budget, expenditure is more than income.
Choose the correct answer :
The capacity of a commodity to satisfy human want is known as _________.
Do you agree with the following statements? Give reasons.
Marginal utility and Total utility is same.
Fill in the blanks with appropriate alternatives given in the bracket.
Marginal consumption function is always ________.
Fill in the blank with appropriate alternatives given below:
Marginal utility diminishes, as consumption of commodity ________.
Fill in the blank with appropriate alternatives given below:
_________________ utility is the utility derived from the last unit of the commodity consumed.
Fill in the blank with appropriate alternatives given below:
When MU is ______________ TU decreases.
State the following statement is True or False:
MU and TU are equal at the initial stage.
Define or explain the following concept:
Marginal utility
Give reason or explain:
Utility is a psychological term.
Give reason or explain:
Utility is ethically neutral.
Write short note on:
Equi-marginal utility
Answer the following question:
Explain the relationship between TU and MU.
State with reason whether you agree or disagree:
When MU is zero, TU diminishes.
Define marginal utility.
Answer the following question.
Discuss briefly, using a hypothetical schedule, the relation between marginal utility and total utility.
Choose the correct answer from given options
When marginal utility is zero, total utility is
Explain the Law of Equi-Marginal Utility.
Utility maximising consumers would like to decrease the consumption when ______.
