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Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Consumer's Equilibrium — Practice Worksheet
Chapter: Consumer's Equilibrium
Topic: Consumer's Equilibrium
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
The want-satisfying power of a good is called its:
  • A.Price
  • B.Utility
  • C.Cost
  • D.Supply
2.
Total satisfaction from a given quantity of a good is:
  • A.Marginal utility
  • B.Total utility
  • C.Average utility
  • D.Price
3.
The extra satisfaction from one more unit is:
  • A.Total utility
  • B.Marginal utility
  • C.Average utility
  • D.Surplus
4.
As more units of a good are consumed, its marginal utility:
  • A.Rises
  • B.Falls
  • C.Stays constant
  • D.Becomes infinite
5.
Total utility is maximum when marginal utility is:
  • A.Maximum
  • B.Zero
  • C.Negative
  • D.Rising
6.
A consumer in equilibrium gets:
  • A.Minimum satisfaction
  • B.Maximum satisfaction from given income and prices
  • C.Zero satisfaction
  • D.Infinite goods
7.
For a single good, consumer equilibrium is where:
  • A.MU = Price
  • B.MU = 0
  • C.TU = 0
  • D.Price = 0
8.
If MU of a good exceeds its price, the consumer will:
  • A.Buy more
  • B.Buy less
  • C.Stop buying
  • D.Do nothing
9.
With many goods, equilibrium requires the marginal utility per rupee to be:
  • A.Equal across all goods
  • B.Highest for one good
  • C.Zero
  • D.Negative
10.
An indifference curve shows combinations of two goods giving:
  • A.The same satisfaction
  • B.Different satisfaction
  • C.Zero satisfaction
  • D.Equal prices
11.
An indifference curve slopes:
  • A.Upward
  • B.Downward
  • C.Vertically
  • D.Horizontally
12.
A higher indifference curve represents:
  • A.More satisfaction
  • B.Less satisfaction
  • C.The same satisfaction
  • D.No satisfaction
13.
The budget line shows combinations the consumer can:
  • A.Afford with his income
  • B.Never afford
  • C.Only dream of
  • D.Produce
14.
A set of indifference curves is called an:
  • A.Indifference map
  • B.Budget set
  • C.Demand curve
  • D.Ogive
15.
Consumer equilibrium (IC approach) is where the budget line is:
  • A.Tangent to the highest attainable IC
  • B.Above all ICs
  • C.Below the origin
  • D.Vertical
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
After eating four chocolates, the fifth gives almost no extra pleasure. This everyday experience illustrates the law of:
  • A.Diminishing marginal utility
  • B.Supply
  • C.Equi-marginal returns to scale
  • D.Demand
17.
If TU values are 10, 18, 24, 28, 30, the marginal utility of the 4th unit is:
  • A.4
  • B.28
  • C.6
  • D.2
18.
A consumer finds the last rupee spent on tea gives more satisfaction than the last rupee on coffee. To maximise satisfaction he should:
  • A.Spend more on tea and less on coffee
  • B.Spend more on coffee
  • C.Stop buying both
  • D.Do nothing
19.
Water is cheap though very useful, while diamonds are dear though less useful. This paradox is explained by:
  • A.The low marginal utility of abundant water vs high MU of scarce diamonds
  • B.Total utility alone
  • C.The budget line
  • D.Inflation
20.
Two points on the SAME indifference curve must give the consumer:
  • A.Equal total satisfaction
  • B.Different satisfaction
  • C.Zero satisfaction
  • D.Equal prices
21.
If the consumer's income rises (prices unchanged), the budget line:
  • A.Shifts outward, parallel to the old one
  • B.Rotates only
  • C.Stays fixed
  • D.Disappears
22.
At the 5th unit MU = 0 and TU is maximum. Consuming a 6th unit with negative MU would:
  • A.Reduce total utility
  • B.Raise total utility
  • C.Leave TU unchanged
  • D.Double TU
23.
The downward slope of an indifference curve means that to keep satisfaction unchanged the consumer must:
  • A.Give up some of one good to get more of the other
  • B.Buy more of both goods
  • C.Spend nothing
  • D.Keep both goods fixed
24.
The indifference curve approach is considered superior partly because it only requires the consumer to:
  • A.Rank combinations, not measure utility in numbers
  • B.Count money exactly
  • C.Know all prices forever
  • D.Measure utility in units
25.
A combination of goods lying ABOVE (outside) the budget line is one the consumer:
  • A.Cannot afford with the given income
  • B.Always buys
  • C.Is indifferent to
  • D.Produces

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) Utility
  2. (B) Total utility
  3. (B) Marginal utility
  4. (B) Falls
  5. (B) Zero
  6. (B) Maximum satisfaction from given income and prices
  7. (A) MU = Price
  8. (A) Buy more
  9. (A) Equal across all goods
  10. (A) The same satisfaction
  11. (B) Downward
  12. (A) More satisfaction
  13. (A) Afford with his income
  14. (A) Indifference map
  15. (A) Tangent to the highest attainable IC
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Diminishing marginal utility
  2. (A) 4
  3. (A) Spend more on tea and less on coffee
  4. (A) The low marginal utility of abundant water vs high MU of scarce diamonds
  5. (A) Equal total satisfaction
  6. (A) Shifts outward, parallel to the old one
  7. (A) Reduce total utility
  8. (A) Give up some of one good to get more of the other
  9. (A) Rank combinations, not measure utility in numbers
  10. (A) Cannot afford with the given income
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