Question

Match List-I with List-II: \[ \begin{array}{|c|l|c|l|} \hline \textbf{List-I} & & \textbf{List-II} & \\ \hline (A) & \text{Analysis assumes that level of utility can be expressed in numbers.} & (I) & \text{Cardinal Utility} \\ \hline (B) & \text{Change in total utility due to consumption of one additional unit of a commodity.} & (II) & \text{Law of Diminishing Marginal Utility} \\ \hline (C) & \text{Marginal utility from consuming each additional unit of a commodity declines as its consumption increases.} & (III) & \text{Marginal Utility} \\ \hline (D) & \text{The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same.} & (IV) & \text{Marginal Rate of Substitution} \\ \hline \end{array} \]

• (A) – (I), (B) – (II), (C) – (III), (D) – (IV)
• (A) – (I), (B) – (III), (C) – (II), (D) – (IV)
• (A) – (II), (B) – (I), (C) – (IV), (D) – (III)
• (A) – (III), (B) – (IV), (C) – (I), (D) – (II)

Hint:

For “Match the List” type questions, always make a table to see connections clearly. Cardinal Utility = measurable satisfaction. Marginal Utility = extra satisfaction from one unit. Diminishing MU = each extra unit gives less satisfaction. MRS = sacrifice ratio between two goods.

Answer 1

The Correct Option is B

Step 1: Matching table.
\[\begin{array}{|c|l|c|l|}\hline\textbf{List-I} & \textbf{Concept in Words} & \textbf{Match} & \textbf{List-II} \\\hline(A) & \text{Utility measurable in numbers} & (I) & \text{Cardinal Utility} \\\hline(B) & \text{Change in TU due to 1 extra unit} & (III) & \text{Marginal Utility} \\\hline(C) & \text{MU declines with more consumption} & (II) & \text{Law of Diminishing Marginal Utility} \\\hline(D) & \text{Sacrifice of mangoes for a banana} & (IV) & \text{Marginal Rate of Substitution} \\\hline\end{array}\]Step 2: Explanation.
- (A) → (I): Cardinal Utility posits that utility can be quantitatively measured.
- (B) → (III): Marginal Utility is defined as the change in total utility resulting from the consumption of one additional unit.
- (C) → (II): The Law of Diminishing Marginal Utility describes the phenomenon where marginal utility decreases with increased consumption.
- (D) → (IV): Marginal Rate of Substitution quantifies the trade-off between different goods.
Final Answer: \[\boxed{(A) – (I), \; (B) – (III), \; (C) – (II), \; (D) – (IV)}\]