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CA Foundation Theory of Consumer Behaviour & Demand — practice questions — page 2

Explore 34 free Theory of Consumer Behaviour & Demand questions in CA Foundation 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 31–34 of 34.

True or false: indifference curvesRead the answer and worked solution →Which one does NOT belong?Read the answer and worked solution →Normal good or inferior good?Read the answer and worked solution →Tap what can shift the demand curveRead the answer and worked solution →

Worked practice questions

True or false: indifference curves

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Questions
  1. Statement is true
    Yes
    Statement
    All points on one indifference curve give the consumer the same satisfaction.
  2. Statement is true
    Yes
    Statement
    An indifference curve slopes downward.
  3. Statement is true
    No
    Statement
    Bundles on a higher indifference curve are less preferred.
  4. Statement is true
    Yes
    Statement
    For perfect substitutes the marginal rate of substitution stays the same.
Instructions
Decide whether each statement about indifference curves is true or false.
_Source: syllabus Introductory Microeconomics Ch2 Consumer Behaviour, 2.3 OPTIMAL CHOICE OF THE CONSUMER_

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Which one does NOT belong?

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Questions
  1. Items
    1. Slopes downward
    2. Slopes upward
    3. Same satisfaction throughout
    4. Usually convex to origin
    Reason
    An indifference curve slopes downward, never upward. The other three are genuine properties.
    Odd item
    Slopes upward
  2. Items
    1. Budget set
    2. Budget line
    3. Marginal cost
    4. Indifference curve
    Reason
    Marginal cost belongs to the theory of the firm. The other three are consumer concepts.
    Odd item
    Marginal cost
Instructions
Tap the item that does not belong with the rest.
_Source: syllabus Introductory Microeconomics Ch2 Consumer Behaviour, 2.3 OPTIMAL CHOICE OF THE CONSUMER_

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Normal good or inferior good?

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Items
  1. Item
    Rises with income
    Category
    Normal
  2. Item
    Income effect +ve
    Category
    Normal
  3. Item
    Buy more if rich
    Category
    Normal
  4. Item
    Falls with income
    Category
    Inferior
  5. Item
    Income effect -ve
    Category
    Inferior
  6. Item
    Drop it if rich
    Category
    Inferior
Categories
  1. Item
    Normal
  2. Item
    Inferior
Instructions
Tap a description, then tap the kind of good it names.
_Source: syllabus Introductory Microeconomics Ch2 Consumer Behaviour, 2.4.3 Normal and Inferior Goods_

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More Economics topics

Unit 1A: Scarcity, Choice and Opportunity CostUnit 3: Production, Cost & Perfect CompetitionUnit 2A: Demand, Supply and Market EquilibriumUnit 5: Factor Markets & Resource AllocationUnit 4: Imperfect Competition & Market StructuresTheory of Demand & Elasticity