. Which one of these assumptions do economists always make about consumers?
(a) That they are all wage earners (b) That they make rational decisions in the market (c) That they cannot spend more than their incomes (d) That they can measure utility derived from consumption
2. The aim of the consumer in allocating his income is (a) to maximize his marginal utility (b) to buy goods he wants most whatever the price. (c) to maximize his total utility (d) to buy those goods which fallen in price.
3. ……………………takes place when the ratio MU of a commodity consumed is equal to the ratio of its price (a) consumer surplus (b) law of diminishing marginal utility (c) consumer behaviour (d) utility maximization
4. Total utility (TU) attains its peak when the Marginal utility (MU) is ….. (a) zero on x- axis (b) above x- axis (c) close to x – axis (d) under x- axis
5. The difference between the amount of money a consumer planned to pay for a commodity and the actual amount of money he paid is………. (a) commodity price (b) consumer surplus (c) marginal cost (d) producer surplus?
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Asked by Lilian on 30th November, 2021
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