Match the following. List-I List-II a. Cardinal approach 1. Marginal utility b. Ordinal approach 2. Revealed preference theory c. Hicks-Allen approach 3. Indifference curve d. Consumer’s surplus 4. Alfred Marshall

The correct answer is: A. a-1, b-3, c-2, d-4.

• Cardinal approach: This approach assumes that utility can be measured in cardinal numbers, such as 1, 2, 3, etc. This means that it is possible to say that one good gives more utility than another good. The cardinal approach is based on the work of Jeremy Bentham and Vilfredo Pareto.
• Ordinal approach: This approach assumes that utility can only be ranked, but not measured. This means that it is possible to say that one good gives more utility than another good, but not how much more utility it gives. The ordinal approach is based on the work of Frank Ramsey and John von Neumann.
• Hicks-Allen approach: This approach is a method of measuring utility that is based on the ordinal approach. It assumes that consumers are rational and that they will always choose the combination of goods that gives them the most utility. The Hicks-Allen approach is based on the work of John Hicks and R.G.D. Allen.
• Indifference curve: This is a curve that shows all the combinations of goods that give a consumer the same level of utility. Indifference curves can be used to represent a consumer’s preferences.
• Consumer’s surplus: This is the difference between the amount that a consumer is willing to pay for a good and the amount that they actually have to pay for it. Consumer’s surplus can be used to measure the benefits that consumers receive from consuming goods.
• Alfred Marshall: This was an English economist who is considered to be one of the founders of modern economics. Marshall developed the theory of consumer demand, which is based on the ordinal approach to utility.

I hope this helps!