CBSE Questions for Class 11 Commerce Economics Theory Of Consumer Behaviour Quiz 10 - MCQExams.com

Ceteris Paribus means _________
  • Other things being not equal
  • Other things being unequal
  • Other things being not same
  • Other things being equal
Which of the following is exception to the law of diminishing marginal utility?
  • Reading
  • Miser
  • Hobbies
  • All of above
The concept of marginal utility plays a central role in _________.
  • Securities analysis
  • Supply analysis
  • Stock analysis
  • Demand analysis
A demand curve ________________________.
  • Slopes downward to upward from left to right
  • Slopes upward to upward from left to right
  • Slopes upward to downward from left to right
  • Slopes upward to downward from right to left
Which of the following factors or principle is/are responsible for the operation of the law of demand, or for the downward slope of demand curves?
(X) The law of diminishing marginal utility
(Y) The law of equi-marginal utility
(Z) Increased real income
  • (X)
  • (Y)
  • (Z)
  • All of the above
Goods which are consumed simultaneously like car and petrol are known as _____________.
  • Competitive goods
  • Substitute goods
  • Gillen goods
  • Complementary goods
If price changes from P to $$P_1$$ due which quantity changes Q to $$Q_1$$, it is known as __________.
912922_528fe04345bc4affb2f4215c1197a88a.png
  • Expansion in demand
  • Contraction in demand
  • Increase in demand
  • Decrease in demand
Which of the following factors or principle in are responsible for the operation of the law of demand, or for the downward slope of demand curves?
  • The law of increasing marginal utility
  • The law of supply
  • Both (A) and (B)
  • The law of diminishing marginal utility
Goods which are used by rich people to show their status are known as ____________.
  • Quality goods
  • Substitute goods
  • Status related goods
  • Giffen goods
If there is change in 'other things' and quantity changes Q to $$Q_2$$, it is known as __________.
912937_ceadcc8325d74e14ada5268f976766cd.png
  • Expansion in demand
  • Contraction in demand
  • Increase in demand
  • Decrease in demand
Car and petrol are example of __________
  • Competitive goods
  • Substitute goods
  • Gillen goods
  • Complementary goods
If demand shift to Point b or Point c from Point a, it is known as ___________.
912925_3d4667ce1134423895c3695d6c57ce5d.png
  • Expansion or contraction in demand
  • Movement along demand curve
  • Increase or decrease in demand
  • Both (A) and (B)
If the demand changes due to change in price, it is called ________.
  • Increase or decrease in demand
  • Expansion or contraction in demand
  • Shift in demand curve
  • Increase or expansion in demand
The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are __________.
  • Normal goods
  • Complements
  • Substitutes
  • Inferior goods
The demand is for moderate priced goods.
  • Elastic
  • Inelastic
  • Unitary
  • All of above
If a good has close substitutes, the price elasticity of demand for a commodity will be _________ as some other commodities can be used for it.
  • Very elastic
  • Very inelastic
  • Unitary
  • All of above
The quantity supplied of a goods or service is the amount that  ___________.
  • is actually bought during a given time period at a given price
  • producers we'll they could sell at a higher price
  • producers plan to sell during a given time period at a given price
  • people are willing to buy during a given time period at a given price
On the basis of following table answer following question.
As per the data given in above Table, equilibrium quantity is :

913253_b75f73faeaa842b397fa1a164bd4ce22.JPG
  • 100 units
  • 110 units
  • 90 units
  • 80 units
According to ____________, supply always awns a schedule of possible prices and amounts that would be sold at each price.
  • Marshall
  • Adam Smith
  • Robins
  • Watson
If individuals are habituated of some commodities the demand for such commodities will be usually -
  • Elastic
  • Inelastic
  • Unitary
  • All of above
Which of the following has inelastic demand?
  • Very costly goods
  • Very cheap goods
  • Both (A) and (B)
  • Neither (A) nor (B)
Where a greater change in price leads to a smaller change in quantity demanded, it is called _____________.
  • perfectly inelastic demand
  • relatively inelastic demand
  • relatively elastic demand
  • perfectly elastic demand
The price of hot dogs increases by 22% and the quantity of hot dogs demanded falls by 25%. This indicates that demand for hot dogs is ______________.
  • Elastic
  • Inelastic
  • Unitary elastic
  • Perfectly elastic
____________ is defined as the responsiveness of the quantity demanded of a good to changes in one of the variables on which demand depends or we can say that it is the percentage change in quantity demanded divided by the percentage in one of the variables on which demand depends.
  • Determinants of demand
  • Exception to demand
  • Elasticity of demand
  • All of above
A discount store has a special offer on CDs. It reduces their price from Rs 150 to RsSuppose the store manager observes that the quantity demanded increases from 700 CDs to 1,303 CDs. What is the price elasticity of demand for CDs?
  • 1.5
  • 1.25
  • 2.58
  • 0.8
Who gave a significant contribution in the study of consumer behaviour?
  • A. C. Pigou
  • Adam Smith
  • Alfred Marshall
  • J. B. Say
Suppose the demand for meals at a medium-priced restaurant is elastic. lf the management of the restaurant is considering raising prices, it can expect a relatively __________.
  • large fall in quantity demanded
  • Large fall in demand
  • Small fall in quantity demanded
  • Small fall in demand
According to graphic or point method of elasticity of demand, the price elasticity of demand at a point on a straight line is equal to of the demand curve.
  • Upper segment of the demand curve divided by lower segment
  • Lower segment of the demand curve plus upper segment of the demand curve
  • Lower segment of the demand curve divided by upper segment
  • Lower segment of the demand curve multiplied by upper segment of demand curve
On which of the following assumption an indifference approach is based?
  • Consumer can rank different combinations of two goods in order of preference i.e. 1st, 2nd, 3rd
  • Consumer's behaviour is consistent
  • Consumer is rational
  • All of above
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
Which of the following assumption is applicable under the Marshallian approach of consumer behaviour?
  • Consumer must be rational in nature.
  • Consumer is a price taker in the market.
  • Two different commodities can never be perfect substitute of each other.
  • All of above
In microeconomics, consumer theory studies ________________________.
  • Total consumer expenditures and saving in the economy.
  • How consumers maximize their well-being by choosing to purchase one basket of goods versus another, or by trading-off current for future consumption, given their limited budgets.
  • The amount of wages and salaries, profits,dividends and interest earnings that consumers have for making purchases in the marketplace.
  • Total consumer expenditures on durable versus nondurable goods or services.
The price of Good X increases by 22% and the quantity of Good X demanded falls by 25%. This indicates that demand for Good X is:
  • Elastic
  • Inelastic
  • Unitary elastic
  • Perfectly elastic
The Cardinal Approach to Utility analysis assumes that Utility is measurable and quantifiable. This means_______.
  • Utility can be expressed in numbers
  • Utility can only be ranked across products
  • Utility Schedule is derived by the Consumer
  • All of the above
Diminishing marginal returns occurs because _____________.
  • total output falls once too many workers are involved in the production process.
  • as more laborers are hired, workers increasingly share use of other fixed inputs, and so their ability to be increasingly productive is limited
  • the first laborers hired are the most qualified, but as the quantity of labor increases the firm draws from a less qualified pool of labor
  • unemployment rates mean that qualified labour is more and more difficult to find as hiring of labour increases
An increase in demand for a normal goods is illustrated a shift in the market demand curve and will occur when _______________.
  • Left; prices for substitute goods.
  • Right; consumer income rise
  • Left; firms raise their prices in response to higher input costs.
  • Right; inputs prices fall
Which of the following is a property of the indifference curve?
I. The indifference curve can touch to X-axis.
II. The higher level of indifference curve shows a low level of satisfaction.
III. An indifference curve is always concave to the origin
IV. Two or more indifference curves can intersect each other.
The correct answer is -
  • II only
  • III & IV only
  • I, II & III only
  • I, II, III and IV
Which of the following Utility measurement approaches is based on the Marshallian school of thought ?
  • Cardinal Utility Approach
  • Ordinal Utility Approach
  • Independent Variables Approach
  • Both (a) and (b)
The three basic assumptions underlying consumer preferences are ____________________________.
  • Consumer do not always make national purchasing decisions, often prefer less to more of goods or services, and are inconsistent in their preferences for different baskets of goods.
  • Consumers face budget constraints, prefer less expensive goods and services to those that are more expensive, and always experience dissatisfaction with their level of consumption.
  • Consumers can compare and rank all possible market baskets of goods and services, their preferences are transitive and consumers prefer more to less.
  • Consumers are unable to rank market baskets containing different goods and services, preferences are not transitive and consumers prefer more to less.
Who is the main exponent of Marginal Utility Analysis?
  • Paul Samuelson
  • Hicks
  • Keynes
  • Marshall
Indifference curves have a negative, concave slope because _________________________.
  • as one moves upward and to the right along an indifference curve, and consumption of one good is substituted for the consumption of anther, total satisfaction rises.
  • as one moves downward and two the right along an indifference curve, and consumption of one good is substituted for the consumption of another, total satisfaction falls.
  • the principle of diminishing marginal utility requires that as consumption of one good increases, more and more of other goods must be given up to keep the level of satisfaction constant
  • the principle of diminishing marginal utility requires that as consumption of one good increases, fewer and fewer of other goods must be given up to keep the level of satisfaction constant
Utility________.
  • Differs from person to person
  • Differs from time to time
  • Differs from product to product
  • All of the above are correct
An indifference curve measures ____________ and its slope is equal to _______________.
  • The different combinations of two goods or services that yield the same level of satisfaction; the marginal rate of substitution
  • The different combinations of two goods or services that yield the same level of satisfaction; the price of one good relative to another
  • The different combinations of two goods or services that the consumer can afford; the ratio of the two goods prices.
  • the different combinations of two goods or services that a consumer can afford; the marginal rate of substitution.
As per the assumptions to the Law of Diminishing Marginal Utility, in case of money, gold, etc. a greater quantity may _________.
  • Increase the lust and utility thereof
  • Decrease the lust and utility thereof
  • Not affect utility at all
  • Nothing can be said
Utility may be affected by the presence or absence of.
  • Substitute Goods
  • Complementary Goods
  • Both (a) and (b)
  • Neither (a) and (b)
The Law of Diminishing Marginal Utility does not apply to ___ , where personal preferences are dominant.
  • Music
  • Hobbies like Stamp and Coin Collection
  • Both (a) and (b)
  • Neither (a) nor (b)
After reaching a saturation point, consumption of additional units of the commodity cause ______.
  • Total Utility to fall and Marginal Utility to increase.
  • Total utility & Marginal Utility both to increase.
  • Total Utility to fall and Marginal Utility to become negative.
  • Total Utility to become negative and Marginal Utility to fall.
The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives _____ from additional consumption.
  • Equal Utility
  • Higher Utility
  • Lesser Utility
  • Infinite Utility
The Cardinal Approach to Utility assumes Marginal Utility of Money is______.
  • Zero
  • Constant
  • Increasing Trend
  • Decreasing Trend
Production of Capital Goods vs Consumer Goods relates to the problem of.
  • What to Produce
  • How to Produce
  • For whom to Produce
  • How to provide for growth
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