NEW
Font size
S
M
L
XL
WorksheetsConsumer equlibrium
Total questions: 19
Worksheet time: 10mins
Name
Class
Date
1.
When Marginal Utility is zero what happens to Total Utility?
a)
Became Zero
b)
Became Maximum
c)
Became Minimum
d)
None of these
2.
When a consumer consumes two goods X and Y , she will attain equilibrium when
a)
MUx = MUy
b)
MUx/Px = MUy/Py
c)
Px/MUx = Py/MUy
d)
None of these
3.
When Total Utility Declines Marginal Utility
a)
Declines
b)
increases
c)
became zero
d)
became negative
4.
Want satisfying power of a commodity is called
a)
Utility
b)
Demand
c)
Consumers equilibrium
d)
None of these
5.
In which analysis Utility can be measured in numbers?
a)
Ordinal Analysis
b)
Cardinal Analysis
c)
Utility Analysis
d)
None of these
6.
When Price of Good-1 increases , other things remaining constant , the budget line will
a)
Pivot inward around the horizontal intercept
b)
Pivot outward around the horizontal intercept
c)
Pivot inward around the vertical intercept
d)
Pivot outward around the Vertical intercept
7.
When income of the Consumer decreases , the budget line
a)
Shifts rightward
b)
shifts leftward
c)
No change
d)
Rotates inward
8.
Slope of the Indifference Curve is
a)
Price Ratio
b)
MRSxy
c)
MRTxy
d)
None of these
9.
What will be the shape of the Indifference curve when its slope increases?
a)
convex to origin
b)
concave to origin
c)
straight line
d)
none of these
10.
Indifference Curve analysis of Consumer's equilibrium is also called
a)
Marshallian Anaysis
b)
Gossen's Analysis
c)
Hicks and Allen Analysis
d)
None of these
11.
The necessary condition in Indifference curve analysis for equilibrium is
a)
MUx = Px
b)
MUx/Px = MUy/Py
c)
MRSxy = - P1/P2
d)
MRSxy increases
12.
Marginal Utility
a)
is always positive
b)
is always negative
c)
can be positive or negative but not zero
d)
can be positive or negative or zero
13.
An indifference curve is downward sloping due to
a)
Monotonic preferences
b)
convex preference
c)
transitivity
d)
none of these
14.
Equation of Budget Line is
a)
P1X1+P2X2 <M
b)
P1X1+P2X2 = M
c)
P1X1+P2X2 >M
d)
P1X1+P2X2 <= M
15.
If the consumer prefer the bundle (5,7) to (3,8) his preference will be called
a)
Monotonic
b)
Indifferent
c)
Convex
d)
None of these
16.
Consumer consumes two goods X and Y and in equilibrium. if Px increases , the consumer will
a)
More of X
b)
Less of X
c)
Both A & B
d)
None of these
17.
The curve derived by joining all bundles which give equal level of satisfaction is called
a)
Budget Line
b)
Indifference Curve
c)
Budget Set
d)
Price Line
18.
Which of the following statement is not True ?
a)
Two indifference curve can intersect each other
b)
an indifference curve never touch either axis
c)
Higher Indifference curve gives higher level of satisfaction
d)
Indifference Curve is convex to the origin
19.
The collection of all the consumption bundles which costs the consumer exactly equal or strictly less than her money income is called
a)
Budget Line
b)
Budget Set
c)
Indifference Map
d)
Indifference Curve
Reset
