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CBSE Questions for Class 11 Commerce Economics Theory Of Consumer Behaviour Quiz 6 - MCQExams.com

If the price elasticity of demand of Britannia cookies is ()0.55, then a 20% increase in price of cookies will lead to ________ in quantity demanded of cookies at that price.
  • 11% increase
  • 11% decrease
  • 20.55% increase
  • 19.45% decrease
If X demands 30 lts of petrol when his monthly income is Rs. 3000, however if his income rises to Rs. 5000 per month his demand for petrol will also increases to 40 lts per month. The income elasticity of petrol is ____________.
  • 0.5
  • 0.75
  • 0.90
  • 1.0
A production possibility frontier explains ________ of Economics.
  • law of diminishing marginal returns
  • law of variable proportions
  • law of marginal utility
  • water vs. diamond paradox
In economics the term "elasticity" refers to __________.
  • flexibility
  • sensitiveness
  • rigidity
  • durability
Point elasticity concept of demand was coined by__________.
  • Alfred Marshall
  • JR Hicks
  • RGD Lipsey
  • Recardo
Change in price of the goods causes ___________.
  • change in quantity demanded
  • shift in demand curve
  • change in price
  • no effect on quantity demanded
Law of diminishing marginal utility states that ____________.
  • with successive increase in consumption of additional units, marginal utility also increases
  • with successive increase in consumption of additional units, marginal utility decreases
  • with successive increase in consumption of additional units, marginal utility remains constant
  • with successive increase in consumption of additional unit, marginal utility first increases then decreases
If two products are perfectly complementary to each other, their indifference curve will be _________.
  • L shaped
  • U shaped
  • Straight line
  • I shaped
Sugar and Coffee are goods ________________.
  • Perfectly substitute
  • Complementary goods
  • Both
  • None
The figures depict indifference curves.
Figure F.3 here shows:
954691_6187a8e30d414b56accc848ad46756ff.jpg
  • Increasing MRSxy
  • Decreasing MRSxy
  • Constant MRSxy
  • None of the above
Indifference curves cannot be a straight line as it would imply __________.
  • constant marginal rate of substitution
  • increasing marginal rate of substitution
  • increasing returns to scale
  • none of the above
Which of these is not a characteristic of an indifference curve?
  • Cannot intersect each other
  • Convex to origin
  • U shaped
  • Negatively sloped
If price of chocobar decreases we expect _________.
  • the quantity demanded to increase
  • quantity demanded to decrease
  • demand curve shifts to left
  • no change in quantity demanded
Goods which are perfect substitute of each other will have rate of substitution of _________ .
  • unity
  • less than 1
  • more then 1
  • zero
When the prices of complementary products increases, the demand of the other product will ______.
  • fall
  • increase
  • remains same
  • all the three possible
Increase in demand is also known as ___________.
  • extraction in demand
  • expansion in demand
  • extension in demand
  • compression in demand
Which of these pair will not have positive cross elasticity of demand?
  • Tea and Coffee
  • Sugar and Coffee
  • Sugar and Tea
  • Milk powder and Tea
Which of these is not an essential assumption of law of diminishing marginal utility concept?
  • Different units consumed should be identical
  • Consumers taste and preference should not change
  • There should be some time gap between consumption
  • The different units consumed should consist of standard unit
Engel's curve depicts _________.
  • relationship between income and demand through a curve
  • relationship between cost and price through a curve
  • relationship between input and output through a curve
  • relationship between demand and price through a curve
Which of these is not a factor determining demand?
  • Price of the commodity
  • Level of income and wealth
  • Cost of production
  • Fashion
Goods that can substitute each others are called _________.
  • complementary goods
  • substitute goods
  • inferior goods
  • duplicate goods
Traditional approach to law of demand was propounded by ______________.
  • Giffen
  • A Samuelson
  • Alfred Marshall
  • Pique
If the price of Bread Omlet rises from Rs.10 per Omlet to Rs.12 per Omlet as a result of which the daily sales decreases from 300 to 180 pieces per day. The price elasticity of demand can be estimated as _________.
  • 2
  • 1.8
  • 2.25
  • 2.10
Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have _______ rate of substitution
  • unity
  • less than 1
  • more than 1
  • zero
Under law of demand, the other things being held constant is/are ________.
  • income of the consumer
  • fashion and consumer taste
  • both
  • none
Sugar and coffee are _________ goods.
  • complementary
  • perfect substitute of each other
  • both
  • unrelated
A good can be considered a normal good in economics if increase in disposal income of the consumer causes _______________.
  • an increase in demand
  • no change in demand
  • decrease in demand
  • less than proportionate change in demand
An imposition of excise duty would effect the demand of a product due to _________.
  • income effect
  • substitution effect
  • both
  • none
Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being Rs. 100 and Rs. 200 per kg a consumer is prepared to buy 3 kg. of each. If the price of tea remain same and the price of Coffee rises to Rs. 400 per kg. the demand for Tea goes to 6 kg. and that of Coffee falls to 1 kg. The elasticity of substitution between Tea and Coffee is ________.
  • 1
  • 4
  • 5
  • 3
Veg Biryani and Mixed fried rice are close substitute, if the price of Veg Biryani increases the demand for Mixed fried rice will _________.
  • contract and the demand for Mixed Fried Rice will shift outwards.
  • remain same but the demand for fried rice will shift inward.
  • decrease and the demand for fried rice will shift leftward.
  • Not affected at all
Elasticity of supply tends to be higher if ________.
  • There are number of close substitute of the product
  • Time period is short
  • There are no substitute of the product
  • Goods are perishable in nature
Indifference curve is the ________ of various combination of two goods.
  • intersection
  • centre
  • locus
  • common points
Non-durable goods are those which are consumed ______.
  • more than once over a period of time
  • once or twice
  • only once
  • used of indefinite time
If decrease in price of sugar cause increase in quantity demanded of coffee then sugar and coffee can be called _______ goods.
  • complementary
  • substitute
  • intermediate
  • unrelated
Shift in Demand curve or change in Demand curve occurs due to ________.
  • increase in cost of production
  • decrease in cost of production
  • change in Ceteris paribus conditions
  • all the three
Goods and services that are necessary for life are called _______.
  • wants
  • desires
  • necessities
  • essentials
If indifference curves were to concave to the origin it would implies ___________.
  • constant marginal rate of substitution
  • increasing marginal rate of substitution
  • increasing returns to scale
  • none
What is the elasticity of demand with respect to price at point p = 3, for demand curve = 6/(p + 7) = 0) ?
  • 3/2
  • 3/5
  • 1/3
  • 0
Durable goods are those which are consumed _________.
  • more than once over a period of time
  • once or twice
  • only once
  • used for indefinite time
The concept of Consumer Surplus is derived from the law of; ..
  • Economies of scale
  • Diminishing marginal utility
  • Law of demand
  • Law of supply
. is the rate at which the consumer is prepared to exchange one good for other
  • Marginal rate of substitution
  • Marginal rate of technical substitution
  • Diminishing returns to scale
  • Increasing returns to scale
Consumer surplus is maximum in the case of  _________________.
  • luxury goods
  • necessities
  • inferior goods
  • normal goods
A production possibility frontier explains-
  • Law of diminishing marginal returns
  • Law of variable proportions
  • Law of marginal utility
  • Water vs diamond paradox
Law of Diminishing Marginal Utility is not applicable to which of these goods;
  • Tea
  • Gold
  • Coffee
  • Chickens
The law of indifference is also know by ________.
  • Law of substitution
  • Law of equimarginal utility
  • Gossen's second law
  • All the three
Goods which are perfect substitute of each other will have elasticity f substitution ________.
  • unity
  • less than 1
  • more than 1
  • infinite
If price of sugar increase, the demand for tea will _______.
  • fall
  • increase
  • not affected
  • no relation
Law of Diminishing Marginal utility is applicable to _________.
  • Intermediate products
  • Capital goods
  • Consumer goods
  • Raw materials
What helps a market economy to decide what to produce?
  • Market survey
  • Economic models
  • Intensity of consumer demand
  • Cost of production
Demand is the _______.
  • unlimited wants of consumers
  • entire relationship between the quantity demanded and the price of a good
  • willingness to pay for a good if income is large enough
  • ability to pay for a good
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