Practice Ordinal Utility Analysis (2.1.2) - Theory of Consumer Behaviour

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6 sample questions

Question 1.
What does Ordinal Utility focus on?
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Think about how preferences can be expressed without numbers.
Question 2.
Define an indifference curve.
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Consider it a line connecting choices that make you equally happy.
3Question 3.
What does Ordinal Utility measure?
- Numerical satisfaction levels
- Ranking preferences
- Exact utility measurements
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Focus on understanding the concept of preference.
4Question 4.
True or False: An indifference curve can intersect another indifference curve.
- True
- False
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Think about what it would mean if two satisfaction levels were equal.
Question 5.
If the MRS between bananas and mangoes is 3 when you have 5 bananas and 6 mangoes, how much could you lose if you wanted one more banana?
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Think about how much satisfaction you are trading.
Question 6.
Create an indifference curve based on a provided utility function and explain what each point represents.
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Remember that all points on the curve indicate equal levels of satisfaction.

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