Consumption Analysis
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Question 1 |
Pick the odd one out
Luxuries | |
Comforts | |
Necessaries | |
Agricultural goods |
Question 2 |
Choice is always constrained or limited by the _____ of our resources.
Scarcity | |
Supply | |
Demand | |
Abundance |
Question 3 |
The chief exponent of the Cardinal utility approach was
J.R.Hicks | |
R.G.D.Allen | |
Marshall | |
Stigler |
Question 4 |
Marginal Utility is measured by using the formula of
a
TUn-TUn-1 | |
TUn-TUn+1 | |
TUn+TUn+1 | |
TUn-TUn+1 |
Question 5 |
When marginal utility reaches zero, the total utility will be
Minimum | |
Maximum | |
Zero | |
Negative |
Question 6 |
Gossen’s first law is known as.
Law of equi-marginal utility | |
Law of diminishing marginal utility | |
Law of demand. | |
Law of Diminishing returns.
|
Question 7 |
The basis for the law of demand is related to
Law of diminishing marginal utility | |
Law of supply | |
Law of equi-marginal utility. | |
Gossen’s Law |
Question 8 |
The concept of consumer’s surplus is associated with
Adam Smith | |
Marshall | |
Robbins | |
Ricardo |
Question 9 |
Given potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus
375 | |
175 | |
200 | |
50 |
Question 10 |
Indifference curve approach is based on
Ordinal approach | |
Cardinal approach | |
Subjective approach | |
Psychological approach |
Question 11 |
The concept of elasticity of demand was introduced by
Ferguson | |
Keynes | |
Adam Smith | |
Marshall |
Question 12 |
Increase in demand is caused by
Increase in tax | |
Higher subsidy | |
Increase in interest rate | |
decline in population |
Question 13 |
The movement on or along the given demand curve is known as____
Extension and contraction of demand | |
shifts in the demand. | |
increase and decrease in demand | |
all the above |
Question 14 |
In case of relatively more elastic demand the shape of the curve is
Horizontal | |
Vertical | |
Steeper | |
Flatter |
Question 15 |
A consumer is in equilibrium when marginal utilities from two goods are
Minimum | |
Maximum | |
Equal | |
Increasing |
Question 16 |
Indifference curve was first introduced by
Hicks | |
Allen | |
Keynes | |
Edgeworth |
Question 17 |
Elasticity of demand is equal to one indicates
Unitary Elastic Demand | |
Perfectly Elastic Demand | |
Perfectly Inelastic Demand | |
Relatively Elastic Demand |
Question 18 |
The locus of the points which gives same level of satisfaction is associated with
Indifference Curves | |
Cardinal Analysis | |
Law of Demand | |
Law of Supply |
Question 19 |
Ordinal Utility can be measured by
Ranking | |
Numbering | |
Wording | |
None of these |
Question 20 |
The indifference curve are
vertical | |
horizontal | |
positive sloped | |
Negatively sloped |
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