CBSE Class 11 Micro Economics – MCQ and Online Tests – Unit 2 – Theory of Consumer Behaviour
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CBSE Class 11 Micro Economics – MCQ and Online Tests – Unit 2 – Theory of Consumer Behaviour
Question 1.
Which element is essential for demand ?
(a) Desire to consume
(b) Availability of adequate resources
(c) Willingness to consume
(d) All of these
Answer
Answer: (d) All of these
Question 2.
Demand Curve generally slopes:
(a) Upward from left to right
(b) Downward from left to right
(c) Parallel to X-axis
(d) Parallel to Y-axis
Answer
Answer: (b) Downward from left to right
Question 3.
Which of the following statement is true ?
(a) Utility means want-satisfying power
(b) Utility is a function of intensity of desire
(c) Desire of consumption gives birth to utility
(d) All of these
Answer
Answer: (d) All of these
Question 4.
When marginal utility is negative, then total utility:
(a) is maximum
(b) Starts decreasing
(c) increases at decreasing rate
(d) None of these
Answer
Answer: (b) Starts decreasing
Question 5.
According to the law of equi-marginal utility, the condition for consumer’s equilibrium is:
(a) \(\frac{MU_A}{P_A}\)
(b) \(\frac{MU_B}{P_B}\)
(c) Both (a) and (b)
(d) Undefined
Answer
Answer: (c) Both (a) and (b)
Question 6.
Which is the First Law of Gossen?
(a) Law of Demand
(b) Law of Diminishing Marginal Utility
(c) Law of Equi-marginal Utility
(d) Consumer’s Surplus
Answer
Answer: (b) Law of Diminishing Marginal Utility
Question 7.
Which of the following is a characteristic of utility ?
(a) Utility is a psychological phenomenon
(b) Utility is subjective
(c) Utility is a relative concept
(d) All of these
Answer
Answer: (d) All of these
Question 8.
How we calculate marginal utility ?
(a) ?TU/?Q
(b) ?MU/?Q
(c) ?Q/?TU
(d) ?Q/?MU
Answer
Answer: (a) ?TU/?Q
Question 9.
When TU becomes maximum, MU is:
(a) Positive
(b) Negative
(c) Zero
(d) None of these
Answer
Answer: (c) Zero
Question 10.
Which of the following is true ?
(a) TU increases till MU is positive
(b) TU is maximum when MU is equal to zero
(c) TU declines when MU is negative
(d) All of these
Answer
Answer: (d) All of these
Question 11.
Who basically propounded the concept of Law of Equimarginal Utility ?
(a) Marshall
(b) Gossen
(c) Ricardo
(d) J. S. Mill
Answer
Answer: (c) Ricardo
Question 12.
In difference curve is:
(a) Convex to the origin
(b) Concave to the origin
(c) Both (a) and (b) true
(d) All of these false
Answer
Answer: (a) Convex to the origin
Question 13.
The ability of satisfying human want in a goods is called its:
(a) Productivity
(b) Satisfaction
(c) Utility
(d) Profitability
Answer
Answer: (c) Utility
Question 14.
Slope of budget line or price line is:
(a) –\(\frac{P_x}{P_y}\)
(b) –\(\frac{P_y}{P_x}\)
(c) +\(\frac{P_x}{P_y}\)
(d) +\(\frac{P_y}{P_x}\)
Answer
Answer: (a) –\(\frac{P_x}{P_y}\)
Question 15.
Utility is related to:
(a) Usefulness
(b) Morality
(c) Satisfaction of human wants
(d) All the above
Answer
Answer: (d) All the above
Question 16.
Utility can be measured by:
(a) Money
(b) Exchange of goods
(c) Weight of the good
(d) None of these
Answer
Answer: (a) Money
Question 17.
Law of Equi-marginal utility is called:
(a) Law of increasing utility
(b) Law of diminishing utility
(c) Law of substitution
(d) None of these
Answer
Answer: (c) Law of substitution
Question 18.
Indifference curve slopes:
(a) From right to left
(b) From left to right
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (b) From left to right
Question 19.
The addition of utilities obtained from all units of a goods is called :
(a) Marginal Utility
(b) Total Utility
(c) Maximum Satisfaction
(d) Additional Utility
Answer
Answer: (b) Total Utility
Question 20.
Who propounded the ordinal utility theory’ ?
(a) Marshall
(b) Pigou
(c) Hicks and Allen
(d) Ricardo
Answer
Answer: (c) Hicks and Allen
Question 21.
The propounder of law of diminishing marginal utility is:
(a) Gossen
(b) Adam smith
(c) Chapman
(d) Hicks
Answer
Answer: (a) Gossen
Question 22.
Consumer’s equilibrium takes at a point where:
(a) MU = Price
(b) MU < Price
(c) MU > Price
(d) None of these
Answer
Answer: (a) MU = Price
Question 23.
The capability of a commodity to satisfy human wants is:
(a) Consumption
(b) Utility
(c) Quality
(d) Taste
Answer
Answer: (b) Utility
Question 24.
For the maximum satisfaction of consumer:
(a) Marginal utility of a good should be equal to its price.
(b) Marginal utility of a good should be greater than its price.
(c) There is no relation between marginal utility and price.
(d) None of these
Answer
Answer: (a) Marginal utility of a good should be equal to its price.
Question 25.
Marshall has given the law of Equimarginal utility related:
(a) Related to goods
(b) Related to money
(c) In relation to both
(d) None of these.
Answer
Answer: (a) Related to goods
Question 26.
How many tremendous curves can touch the budget line:
(a) One
(b) Two
(c) Several
(d) Depends on the basis of indifference maps.
Answer
Answer: (a) One
Question 27.
According to Marshall, utility of a commodity:
(a) Can be measured by money
(b) Cannot be measured by money
(c) Can be measured in cardinal numbers
(c) Both (a) and (b)
Answer
Answer: (c) Both (a) and (b)
Question 28.
In which goods, price fall does not make any increase in demand ?
(a) Necessities Goods
(b) Comfort Goods
(c) Luxuries Goods
(d) None of these
Answer
Answer: (a) Necessities Goods
Question 29.
Which of the following factor affects demand ?
(a) Price
(b) Change in income
(c) Taste of the Consumer
(d) All of these
Answer
Answer: (d) All of these
Question 30.
Goods, which can alternatively be used, are called:
(a) Complementary Goods
(b) Substitutes
(c) Comforts
(d) None of these
Answer
Answer: (b) Substitutes
Question 31.
Law of Demand is a:
(a) Qualitative Statement
(b) Quantitative Statement
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (a) Qualitative Statement
Question 32.
Which of the following is a demand function ?
(a) PX
(b) DX = PX
(c) Dx = (Px)
(d) None of these
Answer
Answer: (c) Dx = (Px)
Question 33.
When change in the price of goods-X affects the demand of goods-Y, this demand is called:
(a) Price Demand
(b) Income Demand
(c) Cross Demand
(d) All of these
Answer
Answer: (d) All of these
Question 34.
For normal goods, Law of Demand states the relationship between price and quantity of goods:
(a) Direct
(b) Positive
(c) Indirect
(d) None of the above
Answer
Answer: (c) Indirect
Question 35.
Which of the following is a reason for fall in demand ?
(a) Fall in Income
(b) Fall in Number of Buyers
(c) Fall in Taste of Consumer
(d) All the above
Answer
Answer: (d) All the above
Question 36.
With rise in coffee price, the demand of tea:
(a) Rises
(b) Falls
(c) Remains stable
(d) None of these
Answer
Answer: (a) Rises
Question 37.
Contraction in demand appears when:
(a) Price rises and demand falls
(b) Price rises and demand also rises
(c) Price remains stable and demand falls
(d) Price falls but demand remains stable
Answer
Answer: (a) Price rises and demand falls
Question 38.
With a rise in price the demand for ‘Giffin’ goods:
(a) increases
(b) decreases
(c) remains constant
(d) becomes unstable
Answer
Answer: (a) increases
Question 39.
Hie slope of the demand Curve of a normal goods is:
(a) Negative
(b) Positive
(c) Zero
(d) Undefined
Answer
Answer: (a) Negative
Question 40.
With an increase in income consumer decreases the consumption of which goods ?
(a) Inferior goods
(b) Normal goods
(c) Giffin goods
(d) Both (a) and (b)
Answer
Answer: (c) Giffin goods
Question 41.
Any statement about demand for a good is considered complete only when the following is/are mentioned in:
(a) Price of the good
(b) Quantity of the good
(c) Period of time
(d) All of these
Answer
Answer: (a) Price of the good
Question 42.
Consumer is in equilibrium when:
(a) MUx = PUx
(b) MUx > PUx
(c) MUx < Px
(d) MUx ÷ Px
Answer
Answer: (a) MUx = PUx
Question 43.
Elasticity of demand is a:
(a) Qualitative Statement
(b) Quantitative Statement
(c) Both (a) and (b)
(d) None of the above
Answer
Answer: (b) Quantitative Statement
Question 44.
Indifference curves were first introduced by the English economist in 1881 by:
(a) Edge worth
(b) Pareto
(c) Myers
(d) Hicks.
Answer
Answer: (a) Edge worth
Question 45.
Any statement about the demand of an object is considered complete when it is mentioned in the following:
(a) Price of good
(b) Demand of good
(c) Time period
(d) All of the above.
Answer
Answer: (d) All of the above.
Question 46.
Which of the following shows elasticity less than one ?
(a) Necessity Goods
(b) Comforts
(c) Luxuries
(d) All of these
Answer
Answer: (a) Necessity Goods
Question 47.
With which method, elasticity of demand is measured ?
(a) Total Expenditure Method .
(b) Percentage or Proportionate Method
(c) Point Method
(d) All of these
Answer
Answer: (d) All of these
Question 48.
Who propounded the percentage or proportionate method of measuring elasticity of demand ?
(a) Marshall
(b) Flux
(c) Hicks
(d) None of these
Answer
Answer: (b) Flux
Question 49.
Which of the following factor affects elasticity of demand ?
(a) Nature of Goods
(b) Price Level
(c) Income Level
(d) All of these
Answer
Answer: (d) All of these
Question 50.
How many types elasticity of uemand has ?
(a) Three
(b) Five
(c)Six
(d) Seven
Answer
Answer: (b) Five
Question 51.
Elasticity of demand for necessities is :
(a) Zero
(b) Unlimited
(c) Greater than unity
(d) Less than unity
Answer
Answer: (a) Zero
Question 52.
Price elasticity of demand means :
(a) Change in demand due to change in price
(b) Change in demand
(c) Change in real income
(d) Change in Price
Answer
Answer: (a) Change in demand due to change in price
Question 53.
The elasticity of demand at the mid-point of a straight line demand curve:
(a) will be zero
(b) will be unity
(c) will be infinity
(d) None of these
Answer
Answer: (b) will be unity
Question 54.
If the demand for a good changes by 60% due to 40% change in price, the elasticity of demand is :
(a) 0.5
(b) -1.5
(c) 1
(d) zero
Answer
Answer: (b) -1.5
Question 55.
For luxury goods the demand is:
(a) Inelastic
(b) Elastic
(c) Highly elastic
(d) Perfectly Inelastic
Answer
Answer: (c) Highly elastic
Question 56.
Who gave the cardinal concept of utility?
(a) Marshall
(b) Pigou
(c) Hicks
(d) Samuelson
Answer
Answer: (a) Marshall
Question 57.
Consumer’s behaviour is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Income Analysis
(d) None of these
Answer
Answer: (a) Micro Economics
Question 58.
Which is a reason of change in demand ?
(a) Change in consumer’s income
(b) Change in price of related goods
(c) Population increase
(d) All pf these
Answer
Answer: (d) All pf these
Question 59.
For a change in which of the following, there is no change in demand ?
(a) Change in price
(b) Change in income
(c) Change in taste and fashion
(d) None of these
Answer
Answer: (d) None of these
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