# Utility Analysis MCQs | Cost utility analysis

Ordinal measures of utility - With ordinal measures, an individual is observed preferring one choice to another. An ordinal measure of utility ranks ## Utility Analysis Economics MCQs

Ordinal measures of utility – With ordinal measures, an individual is observed preferring one choice to another. An ordinal measure of utility ranks the options available to a consumer. Here on MCQs.club we have prepared useful Multiple-Choice Questions (MCQs) on Utility Analysis Economics that fully cover cost utility, marginal utility analysis, ordinal utility analysis, with their definition/examples/meaning. These MCQs are useful for Business management exams, Competitive exams and Professional accountancy exams.

1. Which of the following is correct for “Utility”?
1. A measure of happiness of satisfaction gained from a good or service.
2. The total amount of satisfaction and fulfilment that an individual receives by way of consuming a specific good or service is termed as total utility.
3. The additional amount of satisfaction and fulfilment that is acquired by utilizing one additional unit of a commodity.
4. All of the above
1. Which of the following is correct for “Total Utility”?
1. A measure of happiness of satisfaction gained from a good or service.
2. The total amount of satisfaction and fulfilment that an individual receives by way of consuming a specific good or service is termed as total utility.
3. The additional amount of satisfaction and fulfilment that is acquired by utilizing one additional unit of a commodity.
4. All of the above
1. Which of the following is correct for “Marginal Utility”?
1. The additional amount of satisfaction and fulfilment that is acquired by utilizing one additional unit of a commodity.
2. It could either be positive or negative.
3. Both A&B
4. None
1. Positive marginal utility is when the marginal utility increases the total utility whereas negative marginal utility is when the consumption of an additional unit reduces the amount of total utility.
1. The above is True
2. The above is False
1. A __________ is a way of assigning an option someone has with a level of utility.
1. Rationality
2. Cardinal measure
3. Ordinal measures
4. None
1. Benefits of Cardinal measurement include:
1. One can look in detail at a number of options facing someone
2. Using this someone can evaluate what decision one is likely to make.
3. Both A&B
4. None
1. Which of the following is correct for “Ordinal measures of utility”?
1. With ordinal measures, an individual is observed preferring one choice to another
2. An ordinal measure of utility ranks the options available to a consumer
3. It is able to better determine the person’s utility.
4. All of the above