Prof. Gossen has talked about two psychological law of consumption. One of which is law of DMU. The second law is known as

Cardinal utility analysis of consumer's behaviour is based on which combination of the following assumptions:
I. Utility is measurable is terms of cardinal numbers
II. Constancy of the marginal utility of money
III. Utilities of different goods are interdependent
IV. Gossen's first law of consumption
Choose the correct answer

A

Only I and II

B

Only I, II and IV

C

Only II, III and IV

D

Only III and IV

Prof. Suman takes a number of quizzes for a course. All the quizzes are out of 100. A student can get an A grade in the course if the average of her scores is more than or equal to 90. Grade B is awarded to a student if the average of her scores is between 87 and 89 (both included). If the average is below 87, the student gets a C grade. Ramesh is preparing for his last quiz and he realizes that he must score a minimum of 97 to get an A grade. After the quiz, he realizes that he will score 70, and he will just manage a B. how many quizzes did Prof. Suman take?

A

6

B

7

C

8

D

9

E

None of these

Put these concepts in chronological order of their development.
1. Law of demand
2. Law of indifference
3. Law of DMU
4. Revealed preference theory
5. Indifference curve

A

1, 3, 2, 4, 5

B

1, 2, 3, 4, 5

C

1, 3, 2, 5, 4

D

1, 5, 2, 4, 3

Gossen's second law states that

A

consumer maximises his total pleasure, when satisfaction gained from marginal units of all commodities is the same

B

consumers gain satisfaction only when $$\frac{{{P_x}}}{{{P_y}}} = \frac{{M{U_x}}}{{M{U_y}}}$$

C

when more units are consumed, marginal utility diminishes

D

All of the above

Which of the following is called Gossen's first law?

A

Law of substitution

B

Law of equimarginal utility

C

Law of diminishing Marginal utility

D

None of the above

Which of the following is called as the Gossen's First Law?

A

The Law of equi-marginal utility

B

Law of Substitution

C

The Law of diminishing marginal utility

D

The Law of indifference

The price of sugar increases by 32%. A family reduces its consumption so that expenditure of the sugar is up by 10% only. If the total consumption of sugar before the price rise was 10 kg per month, then the consumption of sugar per month is approximately-

A

8.33 kg

B

8.5 kg

C

8.35 kg

D

8.73 kg

After the increase of price of oil by 40%, a family decided to reduce its oil consumption so that the expenditure for oil goes up by 26% only. If the total consumption of oil before the price rise was 10 kg per month, then what is the current consumption of oil per month (in kg)?

A

8

B

8.50

C

9

D

None of these

the price of sugar increases by 32%. A family reduces its consumption so that the expenditure of the sugar is up only by 10%. If the total consumption of the sugar before the price rise was 10 kg per month, then the consumption of sugar per month at present (in kg) is :

A

$$8\frac{1}{3}$$

B

$$8\frac{1}{2}$$

C

$$8\frac{3}{4}$$

D

9

What does DMU stand for?

A

Density matter usage

B

Direct material usage

C

Density material usage

D

Depth matter usage

Prof. Gossen has talked about two psychological law of consumption. One of which is law of DMU. The second law is known as

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