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Bihar Board Class 12 (Arts) Theory of Consumer Behaviour & Demand — practice questions — page 4

Explore 192 free Theory of Consumer Behaviour & Demand questions in Bihar Board Class 12 (Arts) Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Theory of Consumer Behaviour & Demand questions and exercises with answers

Showing questions 91–120 of 192.

Who showed consumer surplus can measure social welfare for a single price change?Read the answer and worked solution →How is aggregate consumers' surplus obtained?Read the answer and worked solution →Why can a price ceiling sometimes raise prices?Read the answer and worked solution →Isabella Weber argues price caps can help combat which problem?Read the answer and worked solution →What do eviction controls in rent regulation set standards for?Read the answer and worked solution →In economics, the want-satisfying capacity of a commodity is called what?Read the answer and worked solution →Why is utility described as subjective?Read the answer and worked solution →Cardinal utility analysis assumes that utility can be expressed how?Read the answer and worked solution →Marginal utility is the change in total utility from consuming how much more of a good?Read the answer and worked solution →If 4 bananas give 28 units of total utility and 5 bananas give 30, what is the marginal utility of the 5th banana?Read the answer and worked solution →Which formula correctly gives the marginal utility of the nth unit?Read the answer and worked solution →Total utility from n units equals which of the following?Read the answer and worked solution →The law of diminishing marginal utility says that marginal utility from each extra unit does what as consumption rises?Read the answer and worked solution →When total utility stops changing as consumption rises, marginal utility is what?Read the answer and worked solution →The quantity a consumer is willing to buy and able to afford at given prices is called what?Read the answer and worked solution →A demand curve shows quantities a consumer will buy at different prices of the same good, holding what constant?Read the answer and worked solution →The negative relationship between a good's price and quantity demanded is known as what?Read the answer and worked solution →Which idea in cardinal analysis explains why demand curves slope downward?Read the answer and worked solution →Ordinal utility analysis assumes that a consumer can do what with consumption bundles?Read the answer and worked solution →A curve joining all bundles that give a consumer equal satisfaction is called what?Read the answer and worked solution →What is the rate of giving up one good for another at constant utility?Read the answer and worked solution →Going from 15 mangoes and 1 banana to 12 mangoes and 2 bananas, MRS is what?Read the answer and worked solution →The law of diminishing marginal rate of substitution says MRS does what as one good increases?Read the answer and worked solution →Diminishing MRS gives the common indifference curve which shape?Read the answer and worked solution →Five rupee paper bills and five rupee coins are treated by a consumer as what kind of goods?Read the answer and worked solution →What does the indifference curve of two perfect substitutes look like?Read the answer and worked solution →Preferring a bundle with more of one good and no less of the other is called what?Read the answer and worked solution →A family of indifference curves showing a consumer's preferences is called what?Read the answer and worked solution →Why does an indifference curve slope downward?Read the answer and worked solution →Bundles on a higher indifference curve give the consumer what, compared with a lower curve?Read the answer and worked solution →

Worked practice questions

Who showed consumer surplus can measure social welfare for a single price change?

  1. Robert Willig
  2. Isabella Weber
  3. Alfred Marshall
  4. Paul Krugman
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Correct answer: A. Robert Willig

Willig showed that for one price change consumer surplus approximates the change in welfare.

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How is aggregate consumers' surplus obtained?

  1. Summing every buyer's surplus
  2. Averaging all prices paid
  3. Subtracting cost from revenue
  4. Doubling the largest surplus
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Correct answer: A. Summing every buyer's surplus

Adding up the individual surpluses of all buyers gives the market total.

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Why can a price ceiling sometimes raise prices?

  1. Firms coordinate on a cartel price
  2. Firms are forced to shut down
  3. Firms lose all their profits
  4. Firms face much lower costs
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Correct answer: A. Firms coordinate on a cartel price

A regulator-announced maximum can serve as an agreed price, making a cartel easier to form.

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