CBSE Questions for Class 11 Commerce Economics Theory Of Consumer Behaviour Quiz 2 - MCQExams.com

Define the term demand?
  • It is just a desire
  • It is not merely a desire
  • Effective demand
  • The desire to purchase and ability to pay for a good
People who buy goods are called _____.
  • commuters
  • consumers
  • councillors
  • corporators 
What is another term for diminishing rate of substitution?
  • Preferential substitution
  • Concave preferences
  • Convex preferences
  • None of the above
From whom demand comes?
  • People who make goods
  • People who sell goods
  • People who buy goods
  • None of these
What is the vertical intercept of the budget line?
  • M/P2
  • M/P1
  • P1/M
  • P2/M
Which of these is an example of a monotonic preference?
  • (2,2) > (3,2)
  • (2,2) > (1,2)
  • (2.2) > (3,3)
  • (2,2) > (2,3)
When a preference is made between two bundles preferring one with more of atleast one good and no less of the other, it is called __________.
  • Bundle of Preference
  • Maximum Utility Bundle
  • Utility Preferences
  • Monotonic Preferences
Describe the slope of the budget line.
  • Downward sloping
  • Upward sloping
  • Horizontal
  • Vertical
What is the horizontal intercept of the budget line?
  • M/P2
  • P1/M
  • P2/M
  • M/P1
Which of the following is true?
  • Consumer rank bundles in order of their preference over them
  • Consumer rank bundles in order of their budget set
  • Both of the above
  • None of the above
How does a consumer choose her consumption bundle?
  • Tastes and preference < budget set
  • Tastes and preference > budget set
  • Includes both tastes and preference and budget set
  • None of the above
What is the slope of the budget line?
  • P1/P2
  • -(P2/P1)
  • -(P1/P2)
  • P2/P1
Which is the least preferable bundle among the following options?
  • Point above the indifference
  • Point below the indifference
  • Point on the X axis intercept of indifference curve
  • Point on the Y axis intercept of indifference curve
What is the absolute value of the slope of the indifference curve at any point called?
  • substitution rate
  • marginal rate of substitution
  • marginal rate of indifference
  • none of the above
Slope of indifference curve.
  • Upward sloping
  • Downward sloping
  • Horizontal to x axis
  • Vertical to y axis
In which of the following options does the consumer only obtain one good? 
  • Point above the indifference
  • Point below the indifference
  • Point on the X and Y axis intercept of indifference curve
  • None of the above
Elasticity of demand indicates __________________.
  • change in quantity demanded relative to price
  • rate of change in quantity demanded relative to price
  • change in income
  • change in prices
The amount of good 2 a consumer is willing to give up for an extra unit of good one. This phenomenon is called ________.
  • Negative rate of substitution
  • Increasing rate of substitution
  • Constant rate of substitution
  • Diminishing rate of substitution
Which is the most preferable bundle?
  • Point above the indifference
  • Point below the indifference
  • Point on the X axis intercept of indifference curve
  • Point on the Y axis intercept of indifference curve
When demand is inelastic, an increase in the price of a commodity would cause the total expenditure of the consumers to ______________.
  • increase
  • decreases
  • remain unchanged
  • first increase then decrease
Dynamic theory of profit was advocated by ________.
  • Knight
  • Schumpeter
  • Hawley
  • J.B. Clark
Buyers' market denotes ______________.
  • excess of supply over demand
  • equal supply and demand
  • commodities being available at competitive rates
  • demand exceeding supply
The oldest approach to the theory of demand is ________.
  • the marginal utility approach
  • the total utility approach
  • the cardinal utility approach
  • the ordinal utility approach
Exceptional demand curves were first investigated by _________.
  • Sir Robert Giffen
  • Marshall
  • Robertson
  • Veblen
The law of demand operates because of _______.
  • The law of diminishing marginal utility comes into force
  • The working of the principle of different uses
  • The working of the principle of different incomes
  • All of the above
Which of the following refers to demand?
  • The willingness and the ability to buy commodity
  • Shortage of a commodity
  • Want satisfying power of a commodity
  • Surplus of a commodity
Which is known as the First Law of Purchase?
  • Law of Diminishing Marginal Utility
  • Law of demand
  • Elasticity of demand
  • Consumers surplus
The basic law governing consumer behavior is ________.
  • The law of diminishing marginal utility
  • The law of equi-marginal utility
  • The law of substitutes
  • Both (A) and (B)
A slight change in the price will make greater changes in demand is known as _______.
  • elastic
  • inelastic
  • perfectly elastic
  • perfectly inelastic
A demand schedule is one of the contributions of famous economist ______.
  • Adam Smith
  • Alfred Marshall
  • Samuelson
  • J.R. Hies
Which of the following are true?
a) Demand curve slopes downward because it is based upon law of diminishing marginal utility 
b) Demand curve and demand schedule convey same information
  • Both (a) and (b) are true
  • (a) is true, but (b) is false
  • (a) is false, but (b) is true
  • Both (a) and (b) are false
When the elasticity of demand is high, the MR is ______.
  • positive
  • negative
  • zero
  • either negative or zero
When the elasticity of demand is unity, the Marginal revenue is _____.
  • Zero
  • positive
  • negative
  • either negative or zero
Which type of demand is the most important?
  • Income demand
  • Price demand
  • Cross demand
  • All of these
The concept of elasticity of demand is associated with the name of _______.
  • Adam Smith
  • Alfred Marshall
  • Keynes
  • Ricardo
Change in the demand of apples due to increase in its price is _______.
  • increase of demand
  • decrease of demand
  • contraction of demand
  • extension of demand
Elasticity of demand refer to ______.
  • the responsiveness of demand to changes in price
  • the responsiveness of supply to changes in price
  • the responsiveness of price to changes in demand
  • both (A) and (B)
Which of the following are true or false?
a) Car and Petrol are substitutes
b) Law of demand operates in every situation
  • Both (a) and (b) are true
  • (a) is true, but (b) is false
  • (a) is false, but (b) is true
  • Both (a) and (b) are false
At lower commodity prices more of the commodity will be purchased in the market because of _________.
  • more consumers buy the commodity at lower prices than at higher prices
  • consumers substitute this commodity for others in consumption
  • at lower prices, consumers purchase more of the commodity with given money income
  • all of the above
When is demand curve horizontal?
  • Perfect elasticity of demand
  • Perfect inelasticity of demand
  • More elastic demand
  • Less elastic demand
Indifference curve analysis is based on ________.
  • weak ordering
  • cardinal utility analysis
  • ordinal utility analysis
  • law of diminishing marginal utility
Indifference curve analysis is ______________.
  • a subjective concept
  • an introspective concept
  • a psychological concept
  • economic concept
Which one of the following factors is not an exception to the law of demand?
  • Luxurious good
  • Normal good
  • Status symbol
  • Giffen good
Which one of the following is correct?
Elasticity of demand states the relationship between price and demand
Elasticity of demand explains the degree of responsiveness of demand to change in price
Elasticity states the inverse relationship between price and demand
Elasticity of demand explains the direct relationship between price and demand
  • 1 alone is correct
  • 2 alone is correct
  • 1 and 3 are correct
  • 2 and 4 are correct
a) Marshall pointed out, money could measure utility, though in an indirect manner
b) Utility analysis is based on the ordinal number system
  • Both (a) and (b) are true
  • (a) is true, but (b) is false
  • (a) is false, but (b) is true
  • Both (a) and (b) are false
Which of the following are true or false?
a) The Giffen good is considered not an exception to the law of demand 
b) The Giffen effect was first observed by Thorstein Veblen
  • Both (a) and (b) are true
  • (a) is true, but (b) is false
  • (a) is false, but (b) is true
  • Both (a) and (b) are false
Which of the following economists names is not associated with the indifference curve analysis?
  • J.R. Hicks and R.G.D. Allen
  • Vifredo Pareto
  • Irving Fisher
  • Alfred Marshall
The indifference curve analysis is popularised by _________.
  • Slutsky
  • Pareto
  • J.R. Hicks
  • Edgeworth
When the elasticity of demand is low, the MR is ________.
  • positive
  • negative
  • zero
  • either negative or zero
The indifference curve analysis was first introduced by ________.
  • Irving Fisher
  • F.Y. Edgeworth
  • J.R. Hicks
  • Pareto
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 11 Commerce Economics Quiz Questions and Answers