Welcome to your Grade 10 Economics chapter 1
After carefully reading the following 30 questions, choose the correct answer.
1.
What is the term for the level of satisfaction or pleasure derived from the consumption of a good or service?
2.
Which concept describes the power of a commodity to satisfy human wants?
3.
What is the main objective of a rational consumer according to cardinal utility theory?
4.
Which unit of measurement is suggested by the Cardinal School for satisfaction?
5.
Which law states that marginal utility diminishes as a consumer consumes larger quantities of a commodity?
6.
What does Marginal Utility (MU) refer to?
7.
What is the saturation point in terms of total utility?
8.
According to cardinal utility theory, what remains constant for the consumer?
9.
In the case of one commodity, when is a consumer in equilibrium?
10.
What happens to total utility when marginal utility is negative?
11.
Which approach argues that utility can only be ordered and ranked?
12.
Utility is considered subjective because it is:
13.
What is the formula for Marginal Utility (MU)?
14.
If Beka gets 10 utils from 2 oranges and 12 utils from 3 oranges, what is the MU of the 3rd orange?
15.
Which of the following is NOT an assumption of Cardinal Utility theory?
16.
When total utility is at its maximum, what is the value of marginal utility?
17.
What does the term "rationality" imply for a consumer?
18.
In a multi-commodity case, equilibrium occurs when the ratio of MU to price is:
19.
Why is "utility" not synonymous with "usefulness"?
20.
If MUx > Px, how can a consumer increase their welfare?
21.
What provides different utilities to different consumers?
22.
Total utility is calculated as:
23.
Which theory assumes that utility can be expressed in numbers?
24.
What happens to the marginal utility of money in cardinal theory?
25.
What is the relation between TU and MU when TU is increasing at a decreasing rate?
26.
Consumption beyond the saturation point results in:
27.
Utility varies from place to place. This reflects:
28.
What indicates that a consumer is aware of commodities and their prices?
29.
If a consumer is in equilibrium and consumes two goods (A and B), then:
30.
The consumer's budget equation for a single commodity X is:
