The concept of 'Consumer Equilibrium' under utility analysis is achieved when: MCQ with Answer and Explanation

The concept of 'Consumer Equilibrium' under utility analysis is achieved when:
A. Marginal utility is maximum
B. Total utility is zero
C. MU of a commodity is equal to its price
D. Price is zero
Answer: Option C
Solution (By JKSSB Mock Tests)
A consumer is in equilibrium when the marginal utility derived from a commodity equals its price (or MU per unit of money is equalised across commodities).

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Practice More Economy Set 1 Questions

Question #1
The 'index of eight core industries' does not include which of the following?
A. Cement
B. Coal
C. Pharmaceuticals
D. Steel

Correct Answer: Option C


Explanation:
Pharmaceuticals is not included in the eight core industries.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Employees' Provident Fund Organisation' operates under which ministry?
A. Ministry of Labour and Employment
B. Ministry of Social Justice
C. Ministry of Corporate Affairs
D. Ministry of Finance

Correct Answer: Option A


Explanation:
EPFO operates under the Ministry of Labour and Employment.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on life insurance premiums is:
A. 18%
B. 5%
C. 12%
D. 0%

Correct Answer: Option A


Explanation:
Life insurance premiums attract 18% GST.

This question belongs to: Economy GK Economy Set 1