EconomicsOnline Test

Consumption Analysis

Consumption Analysis

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Question 1
Pick the odd one out
A
Luxuries
B
Comforts
C
Necessaries
D
Agricultural goods
Question 2
Choice is always constrained or limited by the _____ of our resources.
A
Scarcity
B
Supply
C
Demand
D
Abundance
Question 3
The chief exponent of the Cardinal utility approach was
A
J.R.Hicks
B
R.G.D.Allen
C
Marshall
D
Stigler
Question 4
Marginal Utility is measured by using the formula of a
A
TUn-TUn-1
B
TUn-TUn+1
C
TUn+TUn+1
D
TUn-TUn+1
Question 5
When marginal utility reaches zero, the total utility will be
A
Minimum
B
Maximum
C
Zero
D
Negative
Question 6
Gossen’s first law is known as.
A
Law of equi-marginal utility
B
Law of diminishing marginal utility
C
Law of demand.
D
Law of Diminishing returns.
Question 7
The basis for the law of demand is related to
A
Law of diminishing marginal utility
B
Law of supply
C
Law of equi-marginal utility.
D
Gossen’s Law
Question 8
The concept of consumer’s surplus is associated with
A
Adam Smith
B
Marshall
C
Robbins
D
Ricardo
Question 9
Given potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus
A
375
B
175
C
200
D
50
Question 10
Indifference curve approach is based on
A
Ordinal approach
B
Cardinal approach
C
Subjective approach
D
Psychological approach
Question 11
The concept of elasticity of demand was introduced by
A
Ferguson
B
Keynes
C
Adam Smith
D
Marshall
Question 12
Increase in demand is caused by
A
Increase in tax
B
Higher subsidy
C
Increase in interest rate
D
decline in population
Question 13
The movement on or along the given demand curve is known as____
A
Extension and contraction of demand
B
shifts in the demand.
C
increase and decrease in demand
D
all the above
Question 14
In case of relatively more elastic demand the shape of the curve is
A
Horizontal
B
Vertical
C
Steeper
D
Flatter
Question 15
A consumer is in equilibrium when marginal utilities from two goods are
A
Minimum
B
Maximum
C
Equal
D
Increasing
Question 16
Indifference curve was first introduced by
A
Hicks
B
Allen
C
Keynes
D
Edgeworth
Question 17
Elasticity of demand is equal to one indicates
A
Unitary Elastic Demand
B
Perfectly Elastic Demand
C
Perfectly Inelastic Demand
D
Relatively Elastic Demand
Question 18
The locus of the points which gives same level of satisfaction is associated with
A
Indifference Curves
B
Cardinal Analysis
C
Law of Demand
D
Law of Supply
Question 19
Ordinal Utility can be measured by
A
Ranking
B
Numbering
C
Wording
D
None of these
Question 20
The indifference curve are
A
vertical
B
horizontal
C
positive sloped
D
Negatively sloped
Question 21
Utility analysis was developed by __________
A
Alfred Marshall and Adam Smith
B
Alfred Marshall and Prof. J.R.Hicks
C
Alfred Marshall and A.C.Pigou
D
Alfred Marshall and J.k.Easthan
Question 22
According to the law of diminishing marginal utility, the utility from the consumption of each additional unit starts ____________
A
Increasing
B
Diminishing
C
Multiplying
D
None of these
Question 23
Equi – Marginal Utility means equal marginal utilities derived from the consumption of more than ____________
A
Four Goods
B
Three Goods
C
Two Goods
D
One Good
Question 24
The Concept of consumers surplus was introduced by ____________
A
Alfred Marshall
B
J.R.Hicks
C
A.C.Pigon
D
J.K.Easthan
Question 25
The Indifference curve analysis was presented by _____________
A
Alfred Marshall
B
J.R.Hicks
C
A.C.Pigon
D
J.K.Easthan
Question 26
The foundation for various other economic law is ________
A
Law of diminishing marginal utility
B
Law of equi-marginal utility
C
Consumer surplus
D
None of these
Question 27
_________ is the other name given for Marshallian utility analysis
A
Total utility
B
Cardinal utility analysis
C
Marginal Utility
D
All of these
Question 28
The ________ Principal is quite useful in explaining the “wather diamond paradox”
A
Equi-Marginal
B
Marginal Utility
C
Utility
D
Total Utility
Question 29
Supply curve is _____________
A
An upward sloping curve
B
A downward sloping curve
C
A horizontal straight line
D
A vertical line
Question 30
____________ of the following constitute ‘demand’ in economics
A
A desire to buy
B
A decision to buy
C
The purchasing power
D
All the above
Question 31
Giffen’s goods are classified in to ____________ and ________ goods.
A
Superior
B
Inferior
C
Both ‘a’ and ‘b’
D
None
Question 32
The term ‘ceteris paribus’ means _____________
A
Speculation
B
Other things remaining constant
C
Veblen effect
D
Antoine Augustin cournot
Question 33
There are ________ kinds of price elasticity of demand
A
Two
B
Three
C
Four
D
Five
Question 34
A change in the quantity supplied is response to a change in the prince is called __________
A
Elasticity of supply
B
Elasticity of demand
C
Concept of Elasticity
D
Unitary Elastic of supply
Question 35
Human wants have the capacity to get satisfied only ___________
A
Temporarily
B
Wants
C
Comforts
D
None of these
Question 36
In Marshallian analysis, it is assumed that utility can be measured quantitatively in terms of units these units are called.
A
Utils
B
Utility
C
Luxuries
D
Comforts
Question 37
___________ Is a powerful factor that influence demand.
A
Expense
B
Price
C
Income
D
Commodity
Question 38
_____________ does P.x denotes.
A
Demand of a commodity
B
Quantity of the demand
C
Price of a commodity
D
All the above
Question 39
Law of diminishing Marginal Utility assumes the marginal utility of money to be _________
A
Increasing
B
Decreasing
C
Constant
D
None of these
Question 40
If the co-efficient elasticity is equal to zero represents __________ supply.
A
Perfectly elastic
B
Unitary inelastic
C
Relatively elastic
D
Perfectly inclastic
Question 41
Higher Indifference curve indicates _____________
A
Higher level of satisfaction
B
Higher cost
C
Lower cost
D
Lower level of satisfaction
Question 42
The Point of intersection of demand and supply curves is known as
A
Equilibrium
B
Disequilibrium
C
Partially Equilibrium
D
General equilibrium
Question 43
Human wants are classified in to
A
Necessaries and Laxuries
B
Luxuries and comforts
C
Neccessaries and comforts
D
Necessaries and Luxuries
Question 44
The Segment of a demand curve between two points is called
A
Straight Line
B
Point
C
Arc
D
Percentage
Question 45
A
A
B
B
C
C
D
D
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There are 45 questions to complete.

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