Advanced Micro Economics

1. Consumer behaviour is-----------

• 1. Consumer behaviour is the study of microeconomics

• 1. Consumer behaviour is the study of macroeconomics

• 1. Consumer behaviour is the study of income analysis

• 1. None of the above

1. Utility is----------

• 1. One of the main characteristics of utility is that it is a relative concept

• 1. One of the main characteristics of utility is that it is a subjective concept

• 1. One of the main characteristics of utility is that it is a psychological phenomenon

• All of the above

1. Which of the following concepts is true?

• 1. The ability to satisfy the human wants in a good or service is called its satisfaction

• 1. The ability to satisfy the human wants in a good or service is called its productivity

• 1. The ability to satisfy the human wants in a good or service is called its productivity

• 1. The ability to satisfy the human wants in a good or service is called its utility

1. The addition of utility is---------

• 1. The addition of utility that is obtained from all the units of a good or service is called the total utility

• 1. The addition of utility that is obtained from all the units of a good or service is called the additional utility

• 1. The addition of utility that is obtained from all the units of a good or service is called the marginal utility

• 1. The addition of utility that is obtained from all the units of a good or service is called the maximum satisfaction

1. The relationship between marginal utility and price is --------

• 1. The marginal utility of a commodity or service must be equal to its price to ensure maximum satisfaction of the consumer

• 1. The marginal utility of a commodity or service must be greater than its price to ensure maximum satisfaction of the consumer

• 1. The marginal utility of a commodity or service must be lesser than its price to ensure maximum satisfaction of the consumer

• 1. There is no relationship between the marginal utility of a commodity or service and its price

1. The relationship between total utility and marginal utility---------

• 1. The total utility of a product or service is maximum when the marginal utility is negative

• 1. The total utility of a product or service decreases when the marginal utility is negative

• 1. The total utility of a product or service increases at a decreasing rate when the marginal utility is negative

• 1. None of the above

1. When the price of coffee rises, the demand for tea _____.

• 1. Falls

• 1. Rises

• 1. Stays the same

• 1. None of the above

   AP declines when TP increase at a---------------- rate

  

• Decreasing

• Increasing

• Constant

• None

    TP is -----------When MP is Zero

   

• Maximum

• Minimum

• Neutral

• None of these

     Average cost is a------

     

•   Horizontal straight line

• Vertical straight line

• U- Shaped Curve

• None of these