Chapter 2 - Consumer's Behaviour Economics Solutions for Class 12 Commerce Economics

Chapter 2 - Consumer's Behaviour

Economics Solutions for Class 12 Commerce Economics

Question 1(A):

Fill in the blanks with appropriate alternatives given in the bracket:

Question 1(B):

Match the columns: 

Question 1(C):

State the following statements are True or False:

1. Utility depends upon the intensity of want.

2. Utility is the basis of demand.

3. MU and TU are equal at the initial stage.

4. The law of diminishing marginal utility explains economic behaviour of a rational consumer.

5. Negative MU denotes more satisfaction.

Question 2(A):

Define or explain the following concepts:

1. Possession utility

2. Knowledge utility

3. Total utility

4. Marginal utility

Question 2(B):

Give reason or explain:

1. Utility is a subjective concept.

2. Utility and happiness are different.

3. Utility is ethically neutral.

4. Utility is a psychological term.

Question 3(A):

Distinguish between:

1. Utility and usefulness

2. Utility and satisfaction

3. Total utility and Marginal Utility

4. Place utility and Time utility

Question 3(B):

Write short notes on:

1. Equi-marginal utility

2. Paradox of value

3. Form utility

Question 4(A):

Answer the following questions:

1. Explain the relationship between TU and MU.

2. What are the characteristics of utility?

Question 4(B):

State with reason whether you agree or disagree:

1. There are no real exceptions to the law of Diminishing Marginal Utility.

2. When MU is zero, TU diminishes.

3. Law of Diminishing Marginal utility is important in practice.

Question 5.1:

Answer in details :

State and explain the law of Diminishing Marginal Utility. Explain its assumptions.

State and explain the law of Diminishing Marginal Utility and explain its exceptions.