Chapter 2. Consumption Analysis March 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. Indifference curve approach is based on a. Ordinal approach b. Cardinal approach c. Subjective approach d. Psychological approach None 2. 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 3. Choice is always constrained or limited by the _____ of our resources. a. Scarcity b. Supply c. Demand d. Abundance None 4. Pick the odd one out a. Luxuries b. Comforts c. Necessaries d. Agricultural goods None 5. 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 6. 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 7. The chief exponent of the Cardinal utility approach was a. J.R.Hicks b. R.G.D.Allen c. Marshall d. Stigler None 8. The concept of consumer’s surplus is associated with a. Adam Smith b. Marshall c. Robbins d. Ricardo None 9. 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 10. When marginal utility reaches zero, the total utility will be a. Minimum b. Maximum c. Zero d. Negative None 11. The indifference curve are a. vertical b. horizontal c. positive sloped d. Negatively sloped None 12. A consumer is in equilibrium when marginal utilities from two goods are a. Minimum b. Inverse c. Equal d. Increasing None 13. In case of relatively more elastic demand the shape of the curve is a. Horizontal b. Vertical c. Steeper d. Flatter None 14. 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 15. The concept of elasticity of demand was introduced by a. Ferguson b. Keynes c. Adam Smith d. Marshall None 16. Ordinal Utility can be measured by a. Ranking b. Numbering c. Wording d. None of these 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. Indifference curve was first introduced by a. Hicks b. Allen c. Keynes d. Edgeworth None 19. Increase in demand is caused by a. Increase in tax b. Higher subsidy c. Increase in interest rate d. decline in population None 20. 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 Time's up Related Posts:Chapter 3: Production AnalysisChapter 4: Cost and Revenue AnalysisChapter 6: Distribution AnalysisChapter 9: Correlation and Regression Analysis
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