CBSE Questions for Class 11 Commerce Economics Theory Of Consumer Behaviour Quiz 13 - MCQExams.com

In difference map is drawn only when ________________.
  • Prices of the commodities are given
  • Income of the consumer is given
  • Taste and preferences of the consumer are given
  • None of the above
The utility may be defined as ______.
  • the power of commodity to satisfy wants
  • the usefulness of a commodity
  • the desire for a commodity
  • none of the above
On an indifference map higher indifference curves show:
  • The same level of satisfaction as the lower indifference curves
  • Optimum level of satisfaction
  • Higher level of satisfaction
  • Level of satisfaction among which the consumer is indifferent
What was Robert Giffen's observation relating to price and quantity demanded of Giffen goods?
  • He observed that for certain commodities price and quantity demanded move in opposite directions.
  • He observed that for certain commodities price and quantity demanded move in the same direction.
  • He observed that for certain commodities price and quantity demanded always remain constant.
  • Both (a) and (b) are correct
The figures depicts indifference curves.
Figure $$F4$$ here shows:
954675_af7297edf8ea43848b9a18d4858bd3c9.jpg
  • Increasing $$MRS_{xy}$$
  • Decreasing $$MRS_{xy}$$
  • Constant $$MRS_{xy}$$
  • None of the above
Indifference curve always slopes:
  • Downwards to the right
  • Upwards to the right
  • Horizontal to X-axis
  • Vertical and parallel to Y-axis
The property that indifference curves are convex to origin implies that to increase stock of one commodity $$X$$ by one unit the consumer will:
  • Give up some units of commodity $$Y$$
  • Give up whole of commodity $$Y$$
  • Give up an equal amount of commodity $$Y$$
  • Not give up any amount of commodity $$Y$$
Indifference curves are convex to the origin because of:
  • Diminishing marginal rate of substitution
  • Increasing marginal rate of substitution
  • Constant marginal rate of substitution
  • None of the above
Indifference curve concave to the origin represents:
  • Increasing marginal rate of substitution
  • Constant marginal rate of substitution
  • Decreasing marginal rate of substitution
  • None of the above
The figures depicts indifference curves.
Which of the above figures of an indifference curve is most relevant to the consumer?
954679_2523762eb6e24867abc9c947effa98ed.jpg
  • Figure $$F.1$$
  • Figure $$F.2$$
  • Figure $$F.3$$
  • Figure $$F.4$$
The figures depict indifference curves.
The indifference curve given in Figure $$F.2$$ represents:
954681_f1d689e9db7c47298f69533afc0a5738.jpg
  • Perfect substitutability
  • Perfect complementary
  • No substitutability
  • No complementary
The indifference curves:
  • Can always cut each other
  • Cut each other initially
  • Never cut each other
  • Cut each other at distant ends
Which of the following is not a property of indifference curves?
  • Convex to the origin
  • Slope downwards to the right
  • Parallel to each other
  • Cannot intersect each other
It is the property of indifference curves that they are always:
  • Convex to the origin
  • Concave to the origin
  • Straight line
  • None of the above
When demand of a commodity falls with a fall in price, the commodity is called as:
  • Normal goods
  • Inferior goods
  • Substitute goods
  • Giffen goods
Refer table and find the value of $$X$$.
  • $$20$$
  • $$0.05$$
  • $$-1$$
  • Can not be determined
Refer table and find the value of $$Y$$.
  • $$5$$
  • $$15$$
  • $$45$$
  • $$3$$
Which one is not an assumption of IC?
  • Rational consumer
  • Short period
  • Substitution of goods
  • None of the above
Which one is not an assumption of law of diminishing marginal utility?
  • Rational consumer
  • Short period
  • Cardinal utility
  • Substitution of goods
If two goods were perfect substitutes of each other, it necessarily follows that _____________.
  • an indifference curve relating the two goods will be concave to the origin
  • an indifference curve relating the two goods will be linear
  • an indifference curve relating the two goods will be divided into two segments, which meet at a right angle
  • an indifference curve relating the two goods will be convex to the origin
Consumer surplus is the area _______.
  • below the demand curve and above the price
  • above the supply curve and below the price
  • above the demand curve and below the price
  • below the supply curve and above the price
A rational consumer is a person who ____________.
  • behaves at all times, other things being equal, in a judicious manner.
  • is influenced by persuasive advertising
  • knows the price of goods in different market and buys the cheapest.
  • has perfect knowledge of the market.
In economics, demand refers to __________.
  • quantity demanded at a particular time
  • quantity demanded backed by the ability to pay
  • quantity demanded for normal and inferior goods
  • quantity demanded at a specific price during a particular period of time
Decrease in demand is due to _________.
  • fall in income
  • unfavourable changes in tastes and preferences of consumer
  • fall in price of substitutes
  • all of the above
When the price of a good changes, it brings about _________.
  • change in quantity demanded
  • change in demand
  • expansion in demand
  • contraction in demand
If income of a household rises by 30% and demand rises by 10% then value of income elasticity of demand is __________.
  • + 0.33
  • - 0.33
  • 3
  • 1
When price of related goods or income or taste changes, it brings about ___________.
  • change in demand
  • change in quantity demanded
  • increase in demand
  • decrease in demand
When price of Z rises, then the quantity demanded of X reduces. What is the relationship between X and Z?
  • Complementary goods
  • Substitute goods
  • Inferior goods
  • Luxuries
If price of burgers rises by 20% and then demand falls by 25%, then demand for burgers is ____________.
  • elastic
  • inelastic
  • unitary elastic
  • perfectly elastic
If income of a household rises by 30% and demand falls by 10% then value of income elasticity of demand is ____________.
  • -0.33
  • +0.33
  • 3
  • 1
Demand is a ________________.
  • flow concept
  • stock concept
  • neither a flow nor a stock concept
  • partially a flow concept
Convexity means the slope is __________.
  • increasing
  • decreasing
  • constant
  • zero
Along an indifference curve utility is _______.
  • same
  • lesser
  • greater
  • none of the above
Slope of budget line is _______.
  • MRS
  • $$\dfrac{MU_x}{MU_y}$$
  • $$\dfrac{P_x}{P_y}$$
  • $$\dfrac{P_y}{P_x}$$
A series of indifference curves is called ___________.
  • indifference structure
  • indifference map
  • indifference graph
  • all of the above
Name the economists who developed:
Marginal utility theory - _____________, and
Indifference curve theory - ___________.
  • Marshall; Hicks
  • Hicks; Marshall
  • Marshall; Samuelson
  • Robbins: Hicks
When the number of uses of the purchased good is less, price elasticity of demand is __________.
  • high
  • low
  • zero
  • infinity
The slope of the indifference curve is called __________.
  • opportunity cost ratio
  • MRTS
  • MRS
  • $$\dfrac{P_x}{P_y}$$
In law of diminishing marginal utility, rationality means __________.
  • consumer is rational
  • producer is rational
  • firm is rational
  • seller is rational
Law of diminishing marginal utility states that as the consumer buys more units of a commodity _________.
  • total utility falls
  • marginal utility falls
  • average utility falls
  • both total and marginal utility falls
When more substitutes are available elasticity of demand is ________.
  • infinity
  • zero
  • low
  • high
Budget line is also called _________.
  • consumption possibility line
  • production possibility line
  • distribution possibility line
  • saving possibility line
Convex indifference curve is explained by _________.
  • diminishing MRS
  • increasing MRS
  • constant MRS
  • none of the above
Consumer's equilibrium condition can be written as ___________.
  • $$\dfrac{MU_x}{P_x} = \dfrac{MU_y}{P_y}$$
  • $$\dfrac{MU_x}{P_x} > \dfrac{MU_y}{P_y}$$
  • $$\dfrac{MU_x}{P_x} < \dfrac{MU_y}{P_y}$$
  • $$\dfrac{P_x}{MU_x} = \dfrac{P_y}{MU_y}$$
An assumption of the constant marginal utility of money means the importance of money to the consumer is _________.
  • rising
  • falling
  • unchanged
  • none of the above
Constraints on which budget line is made are __________.
  • given income and prices
  • given prices and tastes
  • given income and tastes
  • given prices and government policy
When indifference curve is straight downward sloping line, the two goods are _________.
  • not related
  • complements
  • perfect substitutes
  • perfect complements
If MRS was increasing, what shape will indifference curve take?
  • Horizontal
  • Vertical
  • Concave
  • Rising
For consumers' equilibrium to be stable, the requirement is __________.
  • constant MRS
  • increasing MRS
  • diminishing MRS
  • none of the above
What shows all possible combinations of two goods that can be bought by the consumer?
  • Marginal utility curve
  • Indifference curve
  • Budget line
  • None of the above
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