CA Foundation Theory of Consumer Behaviour — practice questions
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Practice CA Foundation Theory of Consumer Behaviour in the app →In neo-classical economics, the term 'utility' is best described as the property of a commodity that gives it Which statement about the nature of utility is correct?The Marginal Utility Analysis of consumer behaviour was propounded by:Under the cardinal utility approach, utility is assumed to be measured in hypothetical units called:Total utility derived from consuming a commodity is correctly expressed as the:A consumer's total utility from 3 units of a good is 45 utils and from 4 units is 50 utils. The marginal utiliThe law of diminishing marginal utility states that as a consumer consumes more units of a good, holding consuAt the point of satiation in the consumption of a good, the marginal utility of the last unit consumed is:When the marginal utility of a good becomes negative, total utility derived from the good will:From the chocolate-bar schedule, total utility is 50 utils at both 4 and 5 units, and 46 utils at 6 units. TheThe marginal utility curve is best described as the:The assumption that the total utility from a collection of goods equals the simple sum of their separate utiliWhich of the following is treated as an apparent exception to the law of diminishing marginal utility?In the single-commodity case, a consumer is in equilibrium when the marginal utility of the good is:When the price of a good falls, a consumer restores single-commodity equilibrium by:Under the law of equi-marginal utility, a consumer spending on goods X and Y is in equilibrium when:The marginal utility of the last unit of good X is 30 utils and its price is Rs.10; the marginal utility of thThe concept of consumer surplus was propounded by:Consumer surplus is defined as the difference between the amount a consumer is willing to pay and the amount hThe price of good X is Rs.20 and a consumer's marginal utility from the 1st unit is worth Rs.30. The consumer A consumer's marginal utilities (in Rs) for successive units of X are 30, 28, 26, 24, 22 and 20, while the marGraphically, total consumer surplus in a market is represented by the area:Other things remaining the same, a rise in the price of a good will cause the consumer surplus to:Which is cited as a limitation of the concept of consumer surplus?The indifference curve analysis of demand treats utility as a concept that is:An indifference curve represents all combinations of two goods that give the consumer:On an indifference map, a curve lying farther from the origin represents:Moving from combination B (2 food, 6 clothing) to combination C (3 food, 4 clothing) along an indifference curThe marginal rate of substitution of X for Y at a point on an indifference curve equals:Indifference curves are normally convex to the origin because of the principle of:When two goods are perfect substitutes, their indifference curves take the shape of:For two goods that are perfect complements, such as a left shoe and a right shoe, the marginal rate of substitTwo indifference curves can never intersect each other because intersection would imply that:The slope of the budget line is determined by the:A consumer has Rs.100 to spend on ice cream priced at Rs.20 and chocolate priced at Rs.10. If he buys 3 ice crA point lying inside (below) the budget line indicates that the consumer is:In indifference curve analysis, a consumer attains equilibrium at the point where the budget line is:At the consumer's equilibrium point in indifference curve analysis, the marginal rate of substitution of X forWhich is stated as an advantage of indifference curve analysis over Marshall's marginal utility analysis?