garnus mcq

Who used the term "micro" and "macro" in economics?

• Adam Smith

• T.R. Malthus

• David Ricardo

• Ragner Frisch

Which of the following is the assumption of indifference curve analysis?

• Cardinal utility

• Ordinal utility

• Independent utility

• Non-measurable utility

Budget or price line of the consumer always shows the

• M = PxQx × PyQy

• M = PxQx – PyQy

• M = PxQx + PyQy

• M = PxQx / PyQy

If a quantity demanded of a commodity remains unchanged as its price change, the price elasticity of demand is

• Greater than one

• Equal to one

• Smaller than one

• Zero

Which of the following statement is correct?

• IC cut each other

• IC never cut each other

• Higher IC gives lower level of satisfaction

• Lower IC gives higher level of satisfaction

The rise in price reduces quantity demanded and the point on demand curve moves upwards to the left, it is called

• Extension of demand

• Contraction of demand

• Decrease in demand

• Increase in demand

What is the meaning of marginal utility?

• Change in total utility divided by change in quantity

• Change in total utility divided by quantity

• Total utility divided by quantity

• Total utility divided by change in quantity

All the combinations of IC gives

• Equal satisfaction

• Lower satisfaction

• Higher satisfaction

• Better satisfaction

Marginal rate of substitution refers to the rate of substituting one commodity for the other maintaining the

• Different level of satisfaction

• Same level of satisfaction

• No preferred

• Only one preferred

Total product becomes maximum when

• MP is zero

• MP is increasing

• MP is negative

• All of the above