Economics Quiz Questions And Answers, which are covered in this chapter, relate to the topic , Theory of Consumer Behaviour Introduction to Micro Economics. Economics Quiz Questions And Answers Test contains 20 questions. Answers to Economics MCQs are available after clicking on the answer.
1._____ shows various combinations of two products that give same amount of satisfaction:
(a) ISO cost curve
(b) Indifference curve
(c) Marginal utility curve
(d) ISO quant
Answer
Answer: (b) Indifference curve
2.Total utility is maximum when :
(a) Marginal utility is maximum
(b) Marginal utility is Zero
(c) Average utility is maximum
(d) Average utility is Zero
Answer
Answer: (b) Marginal utility is Zero
3.An indifference curve is always :
(a) Concave to the origin
(b) Convex to the origin
(c) L-shaped
(d) A vertical straight line
Answer
Answer: (b) Convex to the origin
4.Marginal utility curve of a consumer is also his:
(a) Indifference curve
(b) Total utility curve
(c) Supply curve
(d) Demand curve
Answer
Answer: (d) Demand curve
5.At equilibrium, the slope of the indifference curve is:
(a) Equal to the slope of budget line
(b) Greater than the slope of budget line
(c) Smaller than the slope of budget line
(d) None
Answer
Answer: (a) Equal to the slope of budget line
Economics Quiz Questions And Answers – Theory of Consumer Behaviour
6.The law of equi marginal utility considers price of money as:
(a) zero
(b) less than one
(c) more than one
(d) one
Answer
Answer: (d) one
7.Marginal utility approach was given by:
(a) J.R. hicks
(b) Alfred Marshall
(c) Robbins
(d) A.C. Pigou
Answer
Answer: (b) Alfred Marshall
8.Indifference curves between income and leisure for an individual are generally:
(a) Concave to the origin
(b) Convex to the origin
(c) Negatively sloped straight lines
(d) Positively sloped straight lines
Answer
Answer: (d) Positively sloped straight lines
9.In case of a right angled indifference curve the goods are:
(a) Perfect complements
(b) Perfect substitutes
(c) Inferior goods
(d) Giffen good
Answer
Answer: (A) Perfect complements
10.Indifference curves never intersect each other due to:
(a) Different levels of satisfaction
(b) Same levels of satisfaction
(c) Convex to origin
(d) Concave to origin
Answer
Answer: (a) Different levels of satisfaction
Economics Quiz Questions And Answers – Theory of Consumer Behaviour
11.The convexity of indifference curve is due to _______ :
(a) Declining marginal rate of substitution
(b) Rising marginal rate of substitution
(c) Constant marginal rate of substitution
(d) None of the above.
Answer
Answer: (a) Declining marginal rate of substitution
12.When two goods are perfect complementary, the indifference curve is:
(a) A straight line
(b) U-shaped
(c) L-shaped
(d) Circular in shape.
Answer
Answer: (A) A straight line
13.Marshallian utility analysis is known as_______.
(a) Cardinal
(b) Ordinal
(c) Classical
(d) Historical.
Answer
Answer: (A) Cardinal
14.When marginal Rate of Substitution is increasing, the shape of Indifference curve:
(a) Horizontal
(b) Vertical
(c) Concave
(d) Convex.
Answer
Answer: (c) Concave
15.Cardinal approach is related to:
(a) Indifference curve
(b) Equi-marginal utility
(c) Law of diminishing returns.
(d) None of these.
Answer
Answer: (b) Equi-marginal utility
Economics Quiz Questions And Answers – Theory of Consumer Behaviour
16.The substitution effect of fall in the price of the commodity will lead to:
(a) Upward movement in indifference curve
(b) Downward movement in indifference curve
(c) Movement from lower IC to a higher one
(d) None.
Answer
Answer: (c) Movement from lower IC to a higher one
17.The satisfaction which a consumer derives in the consumption of a commodity is equal to ` 320. The price of that commodity is ` 180. What will be his consumer surplus ?
(a) 180.
(b) 200.
(c) 140.
(d) 500
Answer
Answer: (c) 140
18.The law of equi marginal utility is one of the laws within whose parameters Marginal Utility Analysis is framed. The other one is:
(a) Law of diminishing marginal utility.
(b) Law of proportions.
(c) Law of consumer surplus
(d) Law of increasing returns.
Answer
Answer: (a) Law of diminishing marginal utility.
19.When indifference curve is L shaped then two goods will be _____:
(a) Complementary goods.
(b) Substitute goods.
(c) Perfect substitute goods.
(d) Perfect complementary goods.
Answer
Answer: (d) Perfect complementary goods.
20.On which approach, indifference curve analysis is based?
(a) Cardinal approach.
(b) Ordinal approach.
(c) Cardinal and ordinal both.
(d) None of the above.
Answer
Answer: (b) Ordinal approach.
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These multiple choice questions are nucleus of theory of consumer behaviour