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Question 1

1. What do you mean by utility? (3.5 marks)
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2. Briefly differentiate between the Cardinal and Ordinal views of utility (4 marks)
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3. Write brief notes on the following:
   1. marginal utility
   2. total utility
   3. rational consumer
   4. change in quantity demanded
   5. change in demanded
   (2 marks each)
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Question 2

1. Using clear illustration, explain what consumer's surplus is (7.5 marks)
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2. Also using clear illustrations, differentiate between consumption and waste of resources (10 marks)
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Question 3

1. What do you understand by indifference curve? (3 marks)
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2. Draw and explain an indifference map (7.5 marks)
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3. State seven properties of an indifference curve (7 marks)
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Question 4

1. The law of supply states that other things being equal, the quantity supplied of a commodity varies directly with its price. Explain the underlined phrase (5 marks)
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2. What are the exceptions to the law of supply? (5 marks)
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3. Supposed the price of a commodity rises from #60,000 to #100,000 and the quantity supplied rises from 400 units to 800 units. Calculate elasticity of supply and comment on your answer (7.5 marks)
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Question 5

1. What do you understand by consumer equilibrium? (3 marks)
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2. Using the three conditions for consumer equilibrium, show clearly at what unit equilibrium is established, given price for commodity A as #4.00 and commodity B as #2.00 and income (Y) as #24.00

   Number of units	MUA	MUB
   1	200	180
   2	180	160
   3	160	140
   4	140	120
   5	120	110

   (14.5 marks)
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Question 6

Write short notes on the following:

1. microeconomics
2. macroeconomics
3. economic resources
4. scarcity
5. scale of preference
6. choice
7. perfect market