CBSE Class 11 (Arts) Microeconomics: Consumer's Equilibrium and Demand — practice questions
53 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CBSE Class 11 (Arts) Microeconomics: Consumer's Equilibrium and Demand in the app →What does marginal utility measure?As you eat more laddoos at one sitting, satisfaction from each extra one usuallyNegative marginal utility means each extra unit consumedWhen marginal utility falls to zero, total utility isSatisfaction derived from consumption is quantified in units calledEarly utility ideas linking it to pleasure and pain came fromWhy can the same good have different marginal utilities for two people?Which is an assumption of the law of diminishing marginal utility?The law of diminishing marginal utility assumes the consumer's tasteThe paradox of water and diamonds is most commonly linked toThe water and diamonds paradox puzzles economists because waterAdam Smith's paradox contrasted which two kinds of value?Marginalism says people decide by comparing the benefit of an extra unit withThe law of demand states that price and quantity demanded areWho gave the graphical illustration of the law of demand?On a standard demand curve, which variable is on the vertical axis?By the law of demand, a demand curve isThe law of demand holds only if other factors stay constant, calledThe law of demand is valid if income and other goods' pricesThe income effect of a price rise works through a fall inWhen a good's price rises, the substitution effect makes buyersA shift of the whole demand curve shows a change inA price change alone causes aWhich 1890 work joined demand and supply in one framework?Demand is elastic when the percentage change in quantity demanded isWhich factor affects price elasticity of demand?A positive income elasticity of demand marks a good asIncome elasticity sorts goods into normal goods andA positive advertising elasticity suggests the advertisementWhich good is the classic Giffen example, from Irish famine times?Giffen goods break the law of demand because theGiffen goods are named afterDemand for a Veblen good rises as its priceWhich pair are typical Veblen goods?Veblen goods differ from Giffen goods because they are generallyThe law of demand together with supply fixes theConsumer choice theory has consumers maximise utility subject to aWhich factor influences how a consumer judges the utility of goods?Mental shortcuts that simplify decisions are calledPeople limiting spending on luxuries by preset boundaries showsPoints on one indifference curve give the consumerA set of indifference curves for a consumer is called anThe slope of an indifference curve is called theWhich pair refined indifference curve analysis in the 1930s?Giving up more of one good, the consumer needs successivelyIf A is preferred to B and B to C, a consistent consumer prefers A to C. This isComplete preferences mean the consumer hasUnder reflexive preferences, two identical bundles leave the consumerLocal non-satiation says more of either goodConsumer theory builds demand curves using indifference curves andUtility that can be measured objectively in numbers isOrdinal utility tells us only theA budget line, drawn for two goods, is