EconomicsOnline Test
Consumption Analysis
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 |
Question 21 |
Utility analysis was developed by __________
Alfred Marshall and Adam Smith | |
Alfred Marshall and Prof. J.R.Hicks | |
Alfred Marshall and A.C.Pigou | |
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 ____________
Increasing | |
Diminishing | |
Multiplying | |
None of these |
Question 23 |
Equi – Marginal Utility means equal marginal utilities derived from the consumption of more than ____________
Four Goods | |
Three Goods | |
Two Goods | |
One Good |
Question 24 |
The Concept of consumers surplus was introduced by ____________
Alfred Marshall | |
J.R.Hicks | |
A.C.Pigon | |
J.K.Easthan |
Question 25 |
The Indifference curve analysis was presented by _____________
Alfred Marshall | |
J.R.Hicks | |
A.C.Pigon | |
J.K.Easthan |
Question 26 |
The foundation for various other economic law is ________
Law of diminishing marginal utility | |
Law of equi-marginal utility | |
Consumer surplus | |
None of these |
Question 27 |
_________ is the other name given for Marshallian utility analysis
Total utility | |
Cardinal utility analysis | |
Marginal Utility | |
All of these |
Question 28 |
The ________ Principal is quite useful in explaining the “wather diamond paradox”
Equi-Marginal | |
Marginal Utility | |
Utility | |
Total Utility |
Question 29 |
Supply curve is _____________
An upward sloping curve | |
A downward sloping curve | |
A horizontal straight line | |
A vertical line |
Question 30 |
____________ of the following constitute ‘demand’ in economics
A desire to buy | |
A decision to buy | |
The purchasing power | |
All the above |
Question 31 |
Giffen’s goods are classified in to ____________ and ________ goods.
Superior | |
Inferior | |
Both ‘a’ and ‘b’ | |
None |
Question 32 |
The term ‘ceteris paribus’ means _____________
Speculation | |
Other things remaining constant | |
Veblen effect | |
Antoine Augustin cournot |
Question 33 |
There are ________ kinds of price elasticity of demand
Two | |
Three | |
Four | |
Five |
Question 34 |
A change in the quantity supplied is response to a change in the prince is called __________
Elasticity of supply | |
Elasticity of demand | |
Concept of Elasticity | |
Unitary Elastic of supply |
Question 35 |
Human wants have the capacity to get satisfied only ___________
Temporarily | |
Wants | |
Comforts | |
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.
Utils | |
Utility | |
Luxuries | |
Comforts |
Question 37 |
___________ Is a powerful factor that influence demand.
Expense | |
Price | |
Income | |
Commodity |
Question 38 |
_____________ does P.x denotes.
Demand of a commodity | |
Quantity of the demand | |
Price of a commodity | |
All the above |
Question 39 |
Law of diminishing Marginal Utility assumes the marginal utility of money to be _________
Increasing | |
Decreasing | |
Constant | |
None of these |
Question 40 |
If the co-efficient elasticity is equal to zero represents __________ supply.
Perfectly elastic | |
Unitary inelastic | |
Relatively elastic | |
Perfectly inclastic |
Question 41 |
Higher Indifference curve indicates _____________
Higher level of satisfaction | |
Higher cost | |
Lower cost | |
Lower level of satisfaction |
Question 42 |
The Point of intersection of demand and supply curves is known as
Equilibrium | |
Disequilibrium | |
Partially Equilibrium | |
General equilibrium |
Question 43 |
Human wants are classified in to
Necessaries and Laxuries | |
Luxuries and comforts | |
Neccessaries and comforts | |
Necessaries and Luxuries |
Question 44 |
The Segment of a demand curve between two points is called
Straight Line | |
Point | |
Arc | |
Percentage |
Question 45 |

A | |
B | |
C | |
D |
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