Question 1

Other things being equal a decrease in demand can be caused by

Accepted Answer

A) a fall in price of the commodity 
B) a fall in income of the consumer 
C) a rise in price of the substitute 
D) none of these 
A) a fall in price of the commodity 
B) a fall in income of the consumer 
C) a rise in price of the substitute 
D) none of these B

Question 2

Total utility is

Accepted Answer

A) the sum total of marginal utilities 
B) entire utility derived from whole consumption 
C) increases at a diminishing rate 
D) all the above 
A) the sum total of marginal utilities 
B) entire utility derived from whole consumption 
C) increases at a diminishing rate 
D) all the above D

Question 3

Ordinal utility analysis Was developed by

Accepted Answer

A) j.r.hicks & r.j.d. allen 
B) samualson 
C) marshall and jevons 
D) slutsky 
A) j.r.hicks & r.j.d. allen 
B) samualson 
C) marshall and jevons 
D) slutsky A

Question 4

The basic doctrine of consumers' surplus is based on

Accepted Answer

A) indifference curve analysis 
B) revealed preference theory 
C) law of substitution 
D) law of diminishing marginal utility 
A) indifference curve analysis 
B) revealed preference theory 
C) law of substitution 
D) law of diminishing marginal utility

Question 5

In case of a convex indifference curve

Accepted Answer

A) mrs xy is constant 
B) mrs xy is increasing 
C) mrs xy is negligible 
D) mrs xy is diminishing 
A) mrs xy is constant 
B) mrs xy is increasing 
C) mrs xy is negligible 
D) mrs xy is diminishing

Question 6

As per indifference curve analysis, consumer always try to reach

Accepted Answer

A) higher indifference 
B) lower indifference curve 
C) middle indifference curve 
D) lower income price line 
A) higher indifference 
B) lower indifference curve 
C) middle indifference curve 
D) lower income price line

Question 7

Total utility curve

Accepted Answer

A) always rises 
B) first falls then rises 
C) always falls 
D) first rises and then falls after reaching its maximum 
A) always rises 
B) first falls then rises 
C) always falls 
D) first rises and then falls after reaching its maximum

Question 8

Indifference curve is always

Accepted Answer

A) concave to the origin 
B) convex to the origin 
C) l shaped 
D) a straight line 
A) concave to the origin 
B) convex to the origin 
C) l shaped 
D) a straight line

Question 9

Marginal utility is

Accepted Answer

A) always zero 
B) increases at a diminishing rate 
C) the utility derived from last unit 
D) all the above 
A) always zero 
B) increases at a diminishing rate 
C) the utility derived from last unit 
D) all the above

Question 10

"Utility or satisfaction is a subjective concept; therefore it could only be ranked". The statement supports

Accepted Answer

A) cardinal utility theorist 
B) ordinal utility theorist 
C) behavioral theorist of the firm 
D) none of the above 
A) cardinal utility theorist 
B) ordinal utility theorist 
C) behavioral theorist of the firm 
D) none of the above

Question 11

At saturation point MU of a commodity is

Accepted Answer

A) positive 
B) negative 
C) zero 
D) increasing 
A) positive 
B) negative 
C) zero 
D) increasing

Question 12

When Total utility is increasing at an decreasing rate, marginal utility is

Accepted Answer

A) constant 
B) negative 
C) increasing 
D) decreasing 
A) constant 
B) negative 
C) increasing 
D) decreasing

Question 13

A consumer reaches equilibrium when

Accepted Answer

A) marginal utility is equal to price 
B) marginal utility greater than price 
C) marginal utility less than price 
D) total utility is equal to price 
A) marginal utility is equal to price 
B) marginal utility greater than price 
C) marginal utility less than price 
D) total utility is equal to price

Question 14

Ordinal utility analysis is otherwise known as

Accepted Answer

A) gossens second law 
B) cardinality approach 
C) indifference curve analysis 
D) rationality approach 
A) gossens second law 
B) cardinality approach 
C) indifference curve analysis 
D) rationality approach

Question 15

An indifference curve represent

Accepted Answer

A) four commodities 
B) less than two commodities 
C) only two commodities 
D) only one commodity 
A) four commodities 
B) less than two commodities 
C) only two commodities 
D) only one commodity

Question 16

Engel curve for giffen good is

Accepted Answer

A) positively sloped 
B) negatively sloped 
C) horizontal straight line 
D) vertical straight line 
A) positively sloped 
B) negatively sloped 
C) horizontal straight line 
D) vertical straight line

Question 17

Which method is used by Hicks to eliminate the income effect when price of a product is changed

Accepted Answer

A) compensating variation in income 
B) the cost difference 
C) the over compensation effect 
D) substituting variation in price 
A) compensating variation in income 
B) the cost difference 
C) the over compensation effect 
D) substituting variation in price

Question 18

When individuals income falls (everything remain the same) his demand for a normal good

Accepted Answer

A) rises 
B) falls 
C) remains the same 
D) negative 
A) rises 
B) falls 
C) remains the same 
D) negative

Question 19

Hicks Allen indifference theory is based on

Accepted Answer

A) weak ordering 
B) strong ordering 
C) constant ordering 
D) multiple ordering 
A) weak ordering 
B) strong ordering 
C) constant ordering 
D) multiple ordering

Question 20

According to Marshall, The law of diminishing marginal utility

Accepted Answer

A) applies on money in the manner in which it applies on commodity 
B) do not applies on money except bank money 
C) does not applies on bank money but applies on cash 
D) applies on all commodities except money 
A) applies on money in the manner in which it applies on commodity 
B) do not applies on money except bank money 
C) does not applies on bank money but applies on cash 
D) applies on all commodities except money

Other things being equal a decrease in demand can be caused by

Total utility is

Ordinal utility analysis Was developed by

The basic doctrine of consumers' surplus is based on

In case of a convex indifference curve

As per indifference curve analysis, consumer always try to reach

Total utility curve

Indifference curve is always

Marginal utility is

"Utility or satisfaction is a subjective concept; therefore it could only be ranked". The statement supports

At saturation point MU of a commodity is

When Total utility is increasing at an decreasing rate, marginal utility is

A consumer reaches equilibrium when

Ordinal utility analysis is otherwise known as

An indifference curve represent

Engel curve for giffen good is

Which method is used by Hicks to eliminate the income effect when price of a product is changed

When individuals income falls (everything remain the same) his demand for a normal good

Hicks Allen indifference theory is based on

According to Marshall, The law of diminishing marginal utility

Consumer Theory and Utility

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

Keynesian Economics and Related Concepts

National Income and Keynesian Economics

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Economics Questions on Demand and Supply

Elasticity of Supply and Demand

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Exam 2: Indifference Curve Analysis and Consumer Theory

Other things being equal a decrease in demand can be caused by

Total utility is

Ordinal utility analysis Was developed by

The basic doctrine of consumers' surplus is based on

In case of a convex indifference curve

As per indifference curve analysis, consumer always try to reach

Total utility curve

Indifference curve is always

Marginal utility is

"Utility or satisfaction is a subjective concept; therefore it could only be ranked". The statement supports

At saturation point MU of a commodity is

When Total utility is increasing at an decreasing rate, marginal utility is

A consumer reaches equilibrium when

Ordinal utility analysis is otherwise known as

An indifference curve represent

Engel curve for giffen good is

Which method is used by Hicks to eliminate the income effect when price of a product is changed

When individuals income falls (everything remain the same) his demand for a normal good

Hicks Allen indifference theory is based on

According to Marshall, The law of diminishing marginal utility

Consumer Theory and Utility

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

Keynesian Economics and Related Concepts

National Income and Keynesian Economics

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Economics Questions on Demand and Supply

Elasticity of Supply and Demand

Filters