Principles Of Micro Economics Set 5
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This set of Principles of Micro Economics Multiple Choice Questions & Answers (MCQs) focuses on Principles Of Micro Economics Set 5
Q1 | Measurable utility is the postulate of:
- Neo-Classical school
- Ordinalist school
- Behaviourist school
- Keneysians
Q2 | Which of the following is Gossen’s first law:
- Law of Diminishing Marginal Utility
- Law of Equi Marginal Utility
- Law of substitution
- Law of Diminishing Returns
Q3 | In the case of a free good, the consumer will be in equilibrium when:
- MU = P
- MU = 0
- TU = 0
- TU =1
Q4 | Change in demand due to a change in the price of related good :
- Cross demand
- Price demand
- Income demand
- None of these
Q5 | The Price and quantity relationship for an inferior good is:
- Direct
- Inverse
- Positive
- Indirect
Q6 | In the case of normal goods, the quantity demanded varies inversely with:
- Price of good
- Income of the consumer
- Fashion of the good
- Savings
Q7 | Which of the following is a cardinalist approach to demand analysis:
- Marshallian utility analysis
- Indifference Curve Analysis
- Revealed Preference Theory
- None of these
Q8 | The convexity of an indifference curve shows:
- Diminishing MRS
- Increasing MRS
- Constant MRS
- None
Q9 | A movement from one point to another along an indifference curve makes thesatisfaction:
- Increasing
- Decreasing
- Unaltered
- None
Q10 | In the case of an indifference curve
- dU/dX>dU/dY
- dU/dX = dU/dY
- dU/dX
- dU/dX≤dU/Dy
Q11 | An Indifference Curve to the right of another represents combinations whichare:
- Indifferent
- Preferable
- Inferior
- Superior
Q12 | As moving from left to right through an indifference curve, the MRS of X forY
- Increases
- Remains the same
- Decreases
- Both A and C
Q13 | The slope of an indifference curve represents:
- Price ratio of good X and Y
- MRTS L,K
- MRSx,y
- MRS
Q14 | In the case of perfect complementaries, the MRS between goods is:
- Zero
- Positive
- Negative
- None
Q15 | In a combination of X and Y, if price of Y alone changes, the X intercept will:
- Rotate upwards
- Rotate downwards
- Not be changed
- Parallel
Q16 | At the point of tangency of an indifference curve with a budget line:
- MRSxy =Px/Py
- MRSxy>Px/PY
- MRSxy
- MRSxy≥Px/PY
Q17 | Commodities bought in larger quantities when income rises are called:
- Normal goods
- Inferior goods
- Giffen goods
- None
Q18 | Change in demand due to change in relative price alone is called:
- Income effect
- Substitution effect
- Price effect
- Ratchet effect
Q19 | Substitution Effect is:
- Always negative
- Always positive
- Seldom negative
- Zero
Q20 | If income effect works in the same direction to that of substitution effect, thegood is a:
- Normal good
- Inferior good
- Giffen good
- Superior Good
Q21 | If income effect works in the direction opposite to that of substitution effect,the good is not:
- Giffen good
- Inferior good
- Normal good
- Superior Good
Q22 | Introspection is not the basis of :
- Marshallian utility analysis
- Indifference Curve Analysis
- Revealed Preference Hypothesis
- Demand Analysis
Q23 | The ordering of combinations on an indifference curve is:
- Weak
- Strong
- Average
- None
Q24 | Strong ordering is a distinguishing feature of the theory given by:
- Marshall
- Hicks
- Samuelson
- Adam Smith
Q25 | Father of Economics:
- Marshall
- David Ricardo
- Adam Smith
- J.M. Keynes