What
shows by the above demand curve?
(a) Increase
in Demand (b) Decrease in Demand
(c) Extension
of Demand (d) Contraction of Demand
According
by utility analysis, ‘Utility is_______________.
(a) catrdinal
concept (b) ordinal concept
cardinal
and ordinal concept
None of
these
It is
_______ derived from the consumption of all the units of a commodity
(a) marginal
utility (b) total utility
(c) average
utility (d) consumer equilibrium
What
term is used for additional utility an account of the consumption of an
additional unit of a commodity.
(a) Total
utility (b) average utility
(c) marginal
utility (d) None of these
When
marginal utility is negative, total utility ___________
(a) TU starts
increasing (b) TU starts diminishing
(c) TU
becomes zero (d) TU becomes negative
“As
more and more units a commodity are consumed marginal utility derived from
every additional unit must decline”, The name of law is _________.
Law of
diminishing marginal utility
Law of
demand
Law of
supply
consumer
equilibrium
Which
of the following condition implies in consumer equilibrium in case of one
commodity?
(a) MUm Px (b) MUx MUm
MUx Px
(c) Px MUm (d) None
of these
MUx
Marginal
utility of money in Marginal utility analysis.
(a) constant (b) increases
(c) decreases (d) None of these
9. What happens when MUx MUy
Px Py
increase
in consumption of X & Y
decrease
in consumption of X & Y
increase
in consumption of X
increase
in consumption of X and decrease in consumption of Y.
In case of two commodities a
consumer strikes equilibrium when
(a) MUx MUy
MUm (b) MUx MUy
Px Px Py
Py
(c) MUx MUy (d) Px Py
MUx MUy
Px Py
This shows different combinations
of two goods which a consumer can attain by given his income and market prices
of the goods.
(a) Budget set (b) indifference
map
(c) indifference
curve (d) marginal rate of substitution
Which of the following is not a
characteristic of indifference curve
IC is
convex to the origin
Higher
IC indicates higher level of satisfaction
ICs do
not intersect each other
Concave
to the origin
Which
of the following is not a determinations of individual demand function
(a) Distribution
of Income (b) Price
(b) Income of
Consumer (d) Taste and preferences
14.
Price
(Rs.) Demand
(Units)
20 80
20 100
Name the type of demand by the above example
(a) contraction
of demand (b) expansion of demand
(c) increase
in demand (d) decrease in demand
15.
Prices Quantity
Demanded Total Expenditure
(Rs.) (Units) (Rs.)
16 200 3200
20 160 3200
Answer about Elasticity by Expenditure method
(a) greater
than unitary (b) less than unitary elasticity
(c) unitary
elastic demand (d) Infinite
1. (c); 2. (a); 3. (b); 4. (c); 5. (b); 6. (a); 7. (b); 8.
(a); 9. (d); 10. (a); 11. (a); 12. (d);
(a); 14.
(c); 15. (c)