Chapter 2. Consumption AnalysisMarch 8, 2024 Maven Leave a Comment Welcome to the Chapter 2. Consumption Analysis Quiz! This quiz is based on the book back questions. Name Email 1. The basis for the law of demand is related to a. Law of diminishing marginal utility b. Law of supply c. Law of equi-marginal utility d. Gossen’s Law None 2. The concept of consumer’s surplus is associated with a. Adam Smith b. Marshall c. Robbins d. Ricardo None 3. Indifference curve approach is based on a. Ordinal approach b. Cardinal approach c. Subjective approach d. Psychological approach None 4. Choice is always constrained or limited by the _____ of our resources. a. Scarcity b. Supply c. Demand d. Abundance None 5. Pick the odd one out a. Luxuries b. Comforts c. Necessaries d. Agricultural goods None 6. The chief exponent of the Cardinal utility approach was a. J.R.Hicks b. R.G.D.Allen c. Marshall d. Stigler None 7. When marginal utility reaches zero, the total utility will be a. Minimum b. Maximum c. Zero d. Negative None 8. Marginal Utility is measured by using the formula of a. TUn-TUn-1 b. TUn-TUn+1 c. TUn+TUn+1 d. TUn-TUn+1 None 9. Given potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus a. 375 b. 175 c. 200 d. 50 None 10. Gossen’s first law is known as a. Law of equi-marginal utility b. Law of diminishing marginal utility c. Law of demand d. Law of Diminishing returns None 11. Ordinal Utility can be measured by a. Ranking b. Numbering c. Wording d. None of these None 12. A consumer is in equilibrium when marginal utilities from two goods are a. Minimum b. Inverse c. Equal d. Increasing None 13. The indifference curve are a. vertical b. horizontal c. positive sloped d. Negatively sloped None 14. The locus of the points which gives same level of satisfaction is associated with a. Indifference Curves b. Cardinal Analysis c. Law of Demand d. Law of Supply None 15. In case of relatively more elastic demand the shape of the curve is a. Horizontal b. Vertical c. Steeper d. Flatter None 16. Indifference curve was first introduced by a. Hicks b. Allen c. Keynes d. Edgeworth None 17. Elasticity of demand is equal to one indicates a. Unitary Elastic Demand b. Perfectly Elastic Demand c. Perfectly Inelastic Demand d. Relatively Elastic Demand None 18. Increase in demand is caused by a. Increase in tax b. Higher subsidy c. Increase in interest rate d. decline in population None 19. The movement on or along the given demand curve is known as____ a. Extension and contraction of demand b. shifts in the demand c. increase and decrease in demand d. all the above None 20. The concept of elasticity of demand was introduced by a. Ferguson b. Keynes c. Adam Smith d. Marshall None Time's upRelated Posts:Chapter 4: Consumption and Investment FunctionsChapter 3: Production AnalysisChapter 4: Cost and Revenue AnalysisChapter 6: Distribution Analysis
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