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. Pick the odd one out a. Luxuries b. Comforts c. Necessaries d. Agricultural goods None 2. The concept of consumer’s surplus is associated with a. Adam Smith b. Marshall c. Robbins d. Ricardo None 3. 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 4. Indifference curve approach is based on a. Ordinal approach b. Cardinal approach c. Subjective approach d. Psychological approach None 5. The chief exponent of the Cardinal utility approach was a. J.R.Hicks b. R.G.D.Allen c. Marshall d. Stigler None 6. 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 7. Choice is always constrained or limited by the _____ of our resources. a. Scarcity b. Supply c. Demand d. Abundance 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. When marginal utility reaches zero, the total utility will be a. Minimum b. Maximum c. Zero d. Negative 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. 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 13. Indifference curve was first introduced by a. Hicks b. Allen c. Keynes d. Edgeworth None 14. Increase in demand is caused by a. Increase in tax b. Higher subsidy c. Increase in interest rate d. decline in population None 15. A consumer is in equilibrium when marginal utilities from two goods are a. Minimum b. Inverse c. Equal d. Increasing None 16. The indifference curve are a. vertical b. horizontal c. positive sloped d. Negatively sloped None 17. 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 18. 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 19. The concept of elasticity of demand was introduced by a. Ferguson b. Keynes c. Adam Smith d. Marshall None 20. In case of relatively more elastic demand the shape of the curve is a. Horizontal b. Vertical c. Steeper d. Flatter 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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