CA Foundation Eco Ch 2 Consumer's Equilibrium Quiz 17 Created on August 17, 2023 By admin Consumer’s Equilibrium Quiz 1 1 / 20 All ________ of human beings are called wants in Economics. Desires Tastes Motives All of these 2 / 20 ________ is the want satisfying power of a Commodity. Utility Marginal Utility Desire Desired Utility 3 / 20 ________ is the ________ by the Consumer and ________ is the actual satisfaction derived: Utility, anticipated satisfaction, satisfaction Utility, actual satisfactory, desire Desire, utility, satisfaction None of these 4 / 20 Wants arise from multiple causes including ________. Natural instincts Social obligations Individual’s economic & social status All of the above 5 / 20 Which of the following is not the characteristic of wants of human beings? Wants are unlimited Wants are subjective & relative Wants are affected by income, taste, fashion, advertisements and social customs Wants do not vary with time, place & person. 6 / 20 Wants may arise due to ________ causes. Elementary Psychological Internal Both (a) & (b) 7 / 20 ________ is the additional made to total utility by the consumption of an additional unit of a commodity. Marginal Utility Average Utility Total Utility Incremental Marginal Utility 8 / 20 ________ is the sum of marginal utilities derived from the consumption of different units. Marginal Utility Average Utility Total Utility Incremental Marginal Utility 9 / 20 Alfred Marshall was a ________ economist. British American European Asian 10 / 20 Marginal Utility Analysis has been propounded by : Marshall Hicks Allen Hicks & Allen 11 / 20 Which of the following theories explains consumer behaviours? Marginal Utility Analysis Indifference Curve Returns to scale Both (a) & (b) 12 / 20 From the following data given below answer questions 18 and 19 –UnitsTUMU12002–1803480–Total utility derived from 2nd unit? 380 20 100 280 13 / 20 Which Equation is correct – MUx/MUy=Px/Py MUx/MUy>Px/Py MUx/MUy<Px/Py MUx/MUy≠Px/Py 14 / 20 Additional made to total utility refers to? Total utility Average utility Marginal utility All of the above 15 / 20 The aim of the consumer in al-locating his income is to ________. Maximize his total utility. Maximize his marginal utility. To buy the goods he wants most whatever the price. To buy the goods which he expects to be short in supply. 16 / 20 When economists speak of the utility of a certain good, they are referring to: The demand for the good. The usefulness of the good in consumption. The expected satisfaction derived from consuming the good. The rate at which consumers are willing to exchange one good for another. 17 / 20 Which economist said that money is the measuring rod of utility? A.C. Pigou Marshall Adam Smith Robbins 18 / 20 Cardinal approach is related to: Indifference curve Equi marginal utility Law of diminishing returns None of these 19 / 20 The Consumer is in equilibrium when the following condition is satisfied: Budget line is tangent to the Ic curve MUx/Px=MUy/Py=MU2/Pz Both (a) and (b) None of the above 20 / 20 Marginal utility of 3rd unit is? 200 280 100 50 Your score isThe average score is 71% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 15 Created on August 17, 2023 By admin Consumer’s Equilibrium Quiz 2 1 / 20 Which of the following relation is true with MU? When MU is positive, Total utility rises at a diminishing rate When marginal utility is zero, total utility is maximum When marginal utility is negative, total utility is diminishing All of the above 2 / 20 Which of the following is not an assumption of Marginal Utility Analysis? Rationality Cardinal Measurability of Utility Hypothesis of independent utility Increasing Marginal Utility of Money. 3 / 20 Marginal Utility Analysis is ________ Concept. Cardinal Ordinal Sequential None of these. 4 / 20 When TUn-1 is deducted from TUn, the resultant is ________. Marginal Utility Average Utility Total Utility Incremental Marginal Utility 5 / 20 The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of: Law of demand. Law of diminishing returns. Law of diminishing utility. Law of supply. 6 / 20 Total utility is maximum when: Marginal utility is zero. Marginal utility is at its highest point. Marginal utility is negative. None of the above. 7 / 20 If a Consumer gets more utility from a commodity, he would be willing to pay a higher price and vice versa. This extra satisfaction which consumer gets from the purchase of goods is called as ________. Producer’s Supply Consumer’s Surplus Extra Utility Excess Marginal Utility 8 / 20 The concept of Consumer’s Surplus was propounded by ________. Alfred Marshall Hicks & Allen J.B. Say None of these 9 / 20 The Marginal Utility can be ________. Positive Zero Negative Any of above 10 / 20 According to neo-classical econo-mists, utility is a cardinal concept. It means: Utility is a measurable and quantifiable entity A psychological unit of measurement of utility is available called as ‘UTILS’ Utilities from different units of the commodity can be added. All of the above. 11 / 20 As per the hypothesis of ________Utility, the total utility which a person gets from the whole collection of goods purchased by him is simply the sum total of the separate utilities of the goods. Dependent Independent Related Affected 12 / 20 The concept of consumer’s surplus is derived from: The law of diminishing marginal utility The law of equal-marginal utility The law of diminishing returns Engel’s law 13 / 20 Which of the following is/are the condition’s of theory of consumer surplus if price is same for all the units he purchased? Consumer gains extra utility or surplus Consumer surplus for the last commodity is zero Both None 14 / 20 In the diagram given below, the shaded portion represents. Price above which there is no demand for the commodity. Monopoly price of the commodity. Consumer surplus. None of the above. 15 / 20 By consumer surplus, economists mean ________ The area inside the budget line. The area between the average revenue and marginal revenue curves. The difference between the maxi¬mum amount a person is willing to pay for a good and its market price. None of the above. 16 / 20 Which of the following statement is incorrect as regards Consumer’s Surplus? It can be measured in money It cannot be measured precisely It is affected by a variability of substitutes It is always infinite for necessaries. 17 / 20 Which one is not an assumption of the theory of demand based on analysis of indifference curves? Given scale of preferences as between different combinations of two goods. Diminishing marginal rate of substitution. Constant marginal utility of money. Consumers would always prefer more of a particular good to less of it, other things remaining the same. 18 / 20 The indifference curve analysis is based on ________ utility. Ordinal Cardinal Quantitative Numeric 19 / 20 The Consumer’s surplus in above diagram is ________. OQRP RQD1 DPR ODD1 20 / 20 In case of necessaries, consumes surplus is? Infinite Zero Equals to one More than one Your score isThe average score is 67% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 12 Created on August 17, 2023 By admin Consumer’s Equilibrium Quiz 3 1 / 21 Which of the following is not the property of indifference curve? Slopes downwards to the right Always convex to the origin Intersects each other Will not touch either of the axes 2 / 21 The figure shows the budget constraint of a consumer with an income of ₹ 900 to spend on two commodities, namely ice cream and chocolates.The prices of these two commodities respectively are: ₹ 10 and ₹ 20 ₹ 20 and ₹ 10 ₹ 10 and ₹ 5 Any of the above. 3 / 21 An IC shows ________ MRS between the commodity? Increasing Decreasing Constant Zero 4 / 21 Which of the following is a prop-erty of an indifference curve? It is convex to the origin. The marginal rate of substitution is constant as you move along an indifference curve. Marginal utility is constant as you move along an indifference curve. Total utility is greatest where the 45 degree line cuts the indiffer-ence curve. 5 / 21 An indifference curve slopes down towards right since more of one com-modity and less of another result in: Same level of satisfaction. Greater satisfaction. Maximum satisfaction. Any of the above. 6 / 21 Which of the following is not the property of indifference curve? IC is convex to the origin IC scopes downwards from left to right Two IC can touch each other IC cannot touch either of the axis 7 / 21 ________ represents a collection of many indifference curves where each curve represents a certain level of satisfaction. Indifference Group Indifference Map Indifference Aggregate Market Map 8 / 21 ________ is a curve which represents all those combinations of two goods which give same satisfaction to the consumer. Indifference Curve Iso-Utility Curve Equal-Utility Curve All of the above 9 / 21 A point below the budget line of a consumer ________. Represents a combination of goods which costs the whole of consumer’s income. Represents a combination of goods which costs less than the consumer’s income. Represents a combination of goods which is unattainable to the consumer given his/her money income. Represents a combination of goods which costs more than the consumers’ income. 10 / 21 Which of the following statements is incorrect? An indifference curve must be downward-sloping to the right. Convexity of a curve implies that the slope of the curve diminishes as one moves from left to right. The income elasticity for inferior goods to a consumer is positive. The total effect of a change in the price of a good on its quantity demanded is called the price effect. 11 / 21 Indifference curve is L shaped then two goods will be: Perfect substitute goods Substitute goods Perfect complementary goods Complementary goods 12 / 21 Which one of the following Statement is incorrect about Indifference Curve? Always Convex to the origin Never intersects each other Higher Curve represents higher level of satisfaction It may touch X axis but never Y axis 13 / 21 When the consumer has more and more unit of food, he is prepared to give up less and less units of clothing. It is due to ________. Falling MRS Rising MRS Constant MRS None of the above 14 / 21 When MUA is divided by MUB, then it is the marginal rate of substitution of ________. A for B B for A A & B for other Product None of these 15 / 21 ________ is the rate at which a consumer is prepared to ex-change group X and Y. Marginal Rate of Substitution Average Rate of Substitution Mathematical Rate of Substitution None of the above 16 / 21 In the above indifference map, which point gives highest satisfaction? A B C Both (c) and (d) 17 / 21 The slope of the ‘Price line’ indicates the ratio between ________ of the two goods. Prices Quantities demanded Quantities Sold Marginal Utility 18 / 21 The Slope of Indifference curve is ________. Marginal Rate of Substitution Minimal Rate of Substitution Average Rate of Substitution Total Rate of Substitution 19 / 21 The scope of the indifference curve shows consumer equilibrium at point where MRS(xy) ________ Px/Py (Price line). Less than More than Equal to None of the above 20 / 21 The consumer is in equilibrium at a point where the budget line: Is above an indifference curve Is below an indifference curve Is tangent to an indifference curve Cuts an indifference curve 21 / 21 A higher indifference curve shows a higher level of satisfaction than a lower one. Therefore, a consumer, in his attempt to maximize satisfaction will try to reach the ________ possible indifference curve. Highest Lowest Any of (a) or (b) None of these Your score isThe average score is 69% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
