Question

Match the columns:Column A 1. Marginal utility 2. Point of satiety 3. Form utility 4. Cardinal measurement 5. Service utilityColumn B a. Maximum TU b. Assumption of law of DMU c. Utility from last unit d. Exception of law of DMU e. Furniture from wood f. Knowledge by teacher g. Minimum TU

Answer 1

Marginalism describes both an economic method of analysis and a theory of value. According to this theory, individuals make economic decisions "on the margin"; that is, value is determined by how much additional utility an extra unit of a good or service provides.

Answer 2

The two columns have been matched as follows:

1. Marginal utility- Utility from last unit

2. Point of satiety- Maximum TU

3. Form utility- Furniture from wood.

4.Cardinal measurement- Assumption of law of DMU.

5. Service utility- Knowledge by teacher

* All the given terms are associated with utility and its various forms.

* Here, TU stands for Total Utility whereas DMU stands for Diminishing Marginal Utility.

* Utility can be of various types such as form, place, time and possession.

* Decision making depends on the study of various forms of utility and its implications.