CA CPT - Basics of General Economics - Utility Analysis and Consumer Behaviour

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Question - 1

When Economists speak of the Utility of a certain product, they are referring to -

  • A Demand for the product
  • B Usefulness of the product in consumption
  • C Satisfaction gained from consuming the product
  • D Rate at which consumers are willing to exchange one good for another

Question - 2

 Utility may be defined as -Power of Commodity to satisfy wants

  • A Power of Commodity to satisfy wants
  • B Usefulness of a Commodity
  • C Desire for a Commodity
  • D None of the above

Question - 3

Which of the following statements regarding Utility is not true?

  • A Utility is the psychological satisfaction that a Consumer derives by using a particular product
  • B Utility helps to understand how consumers make choices
  • C Utility is always measureable
  • D Utility is a purely subjective issue.

Question - 4

Utility is a -

  • A Subjective concept
  • B Objective concept
  • C Irrelevant concept
  • D Indeterminate concept

Question - 5

Utility -

  • A Differs from person to person
  • B Differs from time to time
  • C Differs from product to product
  • D All of the above are correct

Question - 6

Utility is applicable -

  • A Only for socially desirable goods (food,etc.)
  • B Only for harmful goods like Liquor, Cigarettes, etc.
  • C Both (a) and (b)
  • D Neither (a) nor (b)

Question - 7

Utility is ethically neutral. This statement is -

  • A True
  • B False
  • C Partially True
  • D Nothing can be said about Utility

Question - 8

Which of the following is not a consumption:

  • A Burning of gas when cooking of food
  • B Burning of furniture in an accident of fire
  • C Eating of an Ice-Cream
  • D Burning of crackers on Diwali

Question - 9

All wants of an individuals are not of:

  • A Equal importance
  • B Immediate importance
  • C Fixed importance
  • D All of the above

Question - 10

Utility can be measured and quantified under -

  • A Cardinal Approach only
  • B Ordinal Approach only
  • C Both (a) and (b)
  • D Neither (a) nor (b)
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