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A budget constraint line is a result of?- a)Market price of commodity X
- b)Market price of commodity Y
- c)Income of the consumer
- d)All of above
Correct answer is option 'A'. Can you explain this answer?
A budget constraint line is a result of?
a)
Market price of commodity X
b)
Market price of commodity Y
c)
Income of the consumer
d)
All of above
|
Nandini Chakraborty answered |
Explanation:
A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
HTML:
Explanation:
A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
HTML:
Explanation:
- A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
- The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
- The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
- However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
- In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
One factor that causes a leftward shift of the demand curve out of the following is- a) Rise in income
- b) Fall in the price of substitute goods
- c) Rise in the price of complementary goods
- d) Fall in income
Correct answer is option 'D'. Can you explain this answer?
One factor that causes a leftward shift of the demand curve out of the following is
a)
Rise in income
b)
Fall in the price of substitute goods
c)
Rise in the price of complementary goods
d)
Fall in income
|
Aryan Khanna answered |
A leftward shift in the demand curve indicates a decrease in demand because consumers are purchasing fewer products for the same price.
The want satisfying power of a commodity is known as:- a)Utility
- b)Consumption
- c)Supply
- d)Demand
Correct answer is option 'A'. Can you explain this answer?
The want satisfying power of a commodity is known as:
a)
Utility
b)
Consumption
c)
Supply
d)
Demand
|
|
Aryan Khanna answered |
The want satisfying power of a commodity is called utility. It is a quality possessed by a commodity or service to satisfy human wants. Utility can also be defined as value-in-use of a commodity because the satisfaction which we get from the consumption of a commodity is its value-in-use.
According to the law of diminishing marginal utility, _________?- a)Additional consumption always yields extra utility
- b)Additional consumption leads to lower average total utility
- c)Additional consumption always yields negative utility
- d)After a point any addition in the consumption causes a reduction in total utility.
Correct answer is option 'D'. Can you explain this answer?
According to the law of diminishing marginal utility, _________?
a)
Additional consumption always yields extra utility
b)
Additional consumption leads to lower average total utility
c)
Additional consumption always yields negative utility
d)
After a point any addition in the consumption causes a reduction in total utility.
|
Priya Patel answered |
According to the Law of Diminishing Marginal Utility, marginal utility of a good diminishes as an individual consumes more units of a good. In other words, as a consumer takes more units of a good, the extra utility or satisfaction that he derives from an extra unit of the good goes on falling.
It should be carefully noted that is the marginal utility and not the total utility than declines with the increase in the consumption of a good. The law of diminishing marginal utility means that the total utility increases but at a decreasing rate.
Can you explain the answer of this question below:Indifference curve represents?
- A:
Four commodities
- B:
Less than two commodities
- C:
Only two commodities
- D:
More than two commodities
The answer is C.
Indifference curve represents?
Four commodities
Less than two commodities
Only two commodities
More than two commodities
|
|
Alok Mehta answered |
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
Which of the following curve has a negative slope and cannot interest each other?- a)Isoquants
- b)Demand and supply curves
- c)Indifference curves
- d)None of above
Correct answer is option 'C'. Can you explain this answer?
Which of the following curve has a negative slope and cannot interest each other?
a)
Isoquants
b)
Demand and supply curves
c)
Indifference curves
d)
None of above
|
Vikas Kapoor answered |
An indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
The coefficient of price elasticity of demand is always- a)Zero
- b)Undefined
- c)Positive
- d)Negative
Correct answer is option 'D'. Can you explain this answer?
The coefficient of price elasticity of demand is always
a)
Zero
b)
Undefined
c)
Positive
d)
Negative
|
Jayant Mishra answered |
This ratio is often called the elasticity c
Can you explain the answer of this question below:This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
- A:
It helps consumers to make choices.
- B:
Utility is always measurable.
- C:
It is a satisfying power of a commodity.
- D:
It is purely a subjective entity.
The answer is B.
This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
It helps consumers to make choices.
Utility is always measurable.
It is a satisfying power of a commodity.
It is purely a subjective entity.
|
Priyanka Ravichandran answered |
B is the correct answer because utility is nothing but human satisfaction so it can't be measured
At what point does total utility starts diminishing?- a)When marginal utility is negative
- b)When marginal utility remains constant
- c)When marginal utility is increasing
- d)When marginal utility is postive
Correct answer is option 'A'. Can you explain this answer?
At what point does total utility starts diminishing?
a)
When marginal utility is negative
b)
When marginal utility remains constant
c)
When marginal utility is increasing
d)
When marginal utility is postive
|
Arya Reddy answered |
MU is addition to TU when an MU becomes -ive TU falls.
Utility is measured in terms of?- a)Centimeter
- b)Seconds
- c)Gram
- d)Utils
Correct answer is option 'D'. Can you explain this answer?
Utility is measured in terms of?
a)
Centimeter
b)
Seconds
c)
Gram
d)
Utils
|
|
Alok Mehta answered |
It can be seen that utility is measured in numbers that are purely cardinal, rather than ordinal. The numbers used to measure utility (often in a unit called the "util") is useful only for comparison.
Total utility curve:- a)First falls and then rises
- b)Always falls
- c)Always rises
- d)First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
Correct answer is option 'D'. Can you explain this answer?
Total utility curve:
a)
First falls and then rises
b)
Always falls
c)
Always rises
d)
First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
|
Ishan Choudhury answered |
MU decrease then TU increases at decreasing rate till MU becomes zero. when MU zero then TU maximum and when MU gets negative TU starts fall
Which of the following utility approach is based on the theory of Alfred Marshall?- a)None of these
- b) Ordinal utility approach
- c) Independent variable approach
- d) Cardinal utility approach
Correct answer is option 'D'. Can you explain this answer?
Which of the following utility approach is based on the theory of Alfred Marshall?
a)
None of these
b)
Ordinal utility approach
c)
Independent variable approach
d)
Cardinal utility approach
|
Om Desai answered |
Alfred Marshall was the dominant figure in British economics from about 1890 until his death in 1924.His specialty was microeconomics—the study of individual markets and industries, as opposed to the study of the whole economy.
It was Alfred Marshall who first discussed the role played by the theory of utility in the theory of value. In Marshall's theory, the concept of utility is cardinal.
It was Alfred Marshall who first discussed the role played by the theory of utility in the theory of value. In Marshall's theory, the concept of utility is cardinal.
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?- a)Consumer surplus
- b)Price gap
- c)Consumer burden
- d)Optimum price
Correct answer is option 'A'. Can you explain this answer?
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
a)
Consumer surplus
b)
Price gap
c)
Consumer burden
d)
Optimum price
|
Devansh Goyal answered |
The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good. The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept. For producers, a surplus can be thought of as profit, because producers usually don't want to produce at a loss. The two together create an economic surplus.
Which of the following utility approach is based on the theory of Alfred Marshall?- a)Independent variable approach
- b)Cardinal utility approach
- c)Ordinal utility approach
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which of the following utility approach is based on the theory of Alfred Marshall?
a)
Independent variable approach
b)
Cardinal utility approach
c)
Ordinal utility approach
d)
None of these
|
|
Ishan Choudhury answered |
The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on. Here, one Util is equivalent to one rupee and the utility of money remains constant.
The concept of marginal utility was developed by?- a)Paul Samuelson
- b)Alfred Marshall
- c)Hicks & Allen
- d)Robbins
Correct answer is option 'B'. Can you explain this answer?
The concept of marginal utility was developed by?
a)
Paul Samuelson
b)
Alfred Marshall
c)
Hicks & Allen
d)
Robbins
|
|
Aryan Khanna answered |
The concept of marginal utility grew out of attempts by economists to explain the determination of price. The term “marginal utility”, credited to the Austrian economist Friedrich von Wieser by Alfred Marshall, was a translation of Wieser's term “Grenznutzen” (border-use).
Which of the following statements regarding utility is not true?- a)Utility is always measurable.
- b) It is a satisfying power of a commodity.
- c) It helps consumers to make choices.
- d) It is purely a subjective entity.
Correct answer is option 'A'. Can you explain this answer?
Which of the following statements regarding utility is not true?
a)
Utility is always measurable.
b)
It is a satisfying power of a commodity.
c)
It helps consumers to make choices.
d)
It is purely a subjective entity.
|
Neha Sharma answered |
Utility is a subjective concept and varies from person to person, at different times and at different places. There cannot be a standardised measure for utility. Therefore, the point that utility always measurable is not true.
At what point does total utility starts diminishing?- a)When marginal utility remains constant
- b)When marginal utility is increasing
- c) When marginal utility is negative
- d)When marginal utility is negative
Correct answer is option 'D'. Can you explain this answer?
At what point does total utility starts diminishing?
a)
When marginal utility remains constant
b)
When marginal utility is increasing
c)
When marginal utility is negative
d)
When marginal utility is negative
|
Kiran Mehta answered |
The law of diminishing marginal utility is a law of economics stating that as a person in creases consumption of a products while keeping consumption of other product costant , there is a decline in the marginal utility that persob derives from consuming each additional unit of product.
Consumer’s surplus is also known as?- a)Buyer’s surplus
- b)Elasticity of demand
- c)Differential surplus
- d) Indifference surplus
Correct answer is option 'A'. Can you explain this answer?
Consumer’s surplus is also known as?
a)
Buyer’s surplus
b)
Elasticity of demand
c)
Differential surplus
d)
Indifference surplus
|
|
Arun Khanna answered |
Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price) it is also known as buyer 's surplus.
The slope of price line throughout its length?- a)Remains the same
- b)Is equal on the other side of the mid points
- c)Differs from point to point
- d)None of above
Correct answer is option 'A'. Can you explain this answer?
The slope of price line throughout its length?
a)
Remains the same
b)
Is equal on the other side of the mid points
c)
Differs from point to point
d)
None of above
|
|
Ishan Choudhury answered |
This is because in perfect competition , price line is a straight line. And the ratio (∆TR/∆Q )That is change in total revenue and change in output is constant.{MR=AR}So slope of a straight line is always constant.
Which of the following curve has a negative slope and cannot interest each other?- a)None of above
- b)Indifference curves
- c)Demand and supply curves
- d)Isoquants
Correct answer is option 'B'. Can you explain this answer?
Which of the following curve has a negative slope and cannot interest each other?
a)
None of above
b)
Indifference curves
c)
Demand and supply curves
d)
Isoquants
|
|
Poonam Reddy answered |
IC slopes downward because as the consumer increases the consumption of one commodity, he has to give up certain units of other commodity in order to maintain the same level of satisfaction.
two indifference curves represent two different levels of satisfaction. If these indifference curves intersect each other, the intersection will represent same level of satisfaction, which is impossible.
Which of the following will have inelastic demand?- a)Fruits
- b)ice-cream
- c)petrol
- d)Medicine
Correct answer is 'D'. Can you explain this answer?
Which of the following will have inelastic demand?
a)
Fruits
b)
ice-cream
c)
petrol
d)
Medicine
|
Arpita Nambiar answered |
Demand for medicine is in-elastic as it falls in category of a necessity good.
When the total utility is increasing at an increasing rate, marginal utility is___________?- a)Increasing
- b)Constant
- c)Negative
- d)Decreasing
Correct answer is option 'A'. Can you explain this answer?
When the total utility is increasing at an increasing rate, marginal utility is___________?
a)
Increasing
b)
Constant
c)
Negative
d)
Decreasing
|
|
Poonam Reddy answered |
The correct option is D.
Total utility refers to the total satisfaction obtained from the consumption of all possible units of a commodity. Marginal utility is the additional utility derived from the consumption of one more unit of the given commodity. MU=TUn-TUn-1.So when TU is increasing at an increases this means utility derived from each unit is increasing. This means marginal utility is increasing.
A curve which first moves upwards then downwards is__________?- a)Total utility curve
- b)Demand curve
- c)Indifference curve
- d)Marginal utility curve
Correct answer is option 'A'. Can you explain this answer?
A curve which first moves upwards then downwards is__________?
a)
Total utility curve
b)
Demand curve
c)
Indifference curve
d)
Marginal utility curve
|
|
Naina Sharma answered |
MU is the rate of change of TU.
When the MU decreases, TU increases at decreasing rate.
When MU becomes zero, TU is maximum. It is a saturation point.
When MU becomes negative, TU declines
Can you explain the answer of this question below:What is called point of satiety?
- A:
The point where marginal utility becomes less than zero
- B:
The point where marginal utility becomes greater than zero
- C:
The point where marginal utility becomes zero.
- D:
None of above
The answer is C.
What is called point of satiety?
The point where marginal utility becomes less than zero
The point where marginal utility becomes greater than zero
The point where marginal utility becomes zero.
None of above
|
|
Jayant Mishra answered |
Point of Satiety is defined as '' the point where marginal utility of any commodity is zero''. Thus it is a point where satisfaction of any commodity is zero.
Consumer’s surplus is also known as?- a)Elasticity of demand
- b)Indifference surplus
- c)Buyer’s surplus
- d) Differential surplus
Correct answer is option 'C'. Can you explain this answer?
Consumer’s surplus is also known as?
a)
Elasticity of demand
b)
Indifference surplus
c)
Buyer’s surplus
d)
Differential surplus
|
Rashi Bose answered |
A consumer is an individual or entity that purchases goods or services for personal or business use. They play a vital role in the economy as they drive demand for products and services, which helps to create jobs and generate revenue for businesses. Consumers can be categorized into various groups based on their age, gender, income, and lifestyle. Understanding consumer behavior and preferences is crucial for businesses to develop effective marketing strategies and to improve their products and services.
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?- a)Consumer burden
- b)Consumer surplus
- c)Price gap
- d) Optimum price
Correct answer is option 'B'. Can you explain this answer?
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
a)
Consumer burden
b)
Consumer surplus
c)
Price gap
d)
Optimum price
|
|
Ishan Choudhury answered |
Consumer surplus happens when the price consumers pay for a product or service is less than the price they're willing to pay. Consumer surplus is the benefit or good feeling of getting a good deal.
Consumer surplus always increases as the price of a good falls and decreases as the price of a good rises.
Consumer surplus always increases as the price of a good falls and decreases as the price of a good rises.
Marginal utility curve of a given consumer is also his?- a)Demand curve
- b)Supply curve
- c)Indifference curve
- d)Total utility curve
Correct answer is option 'A'. Can you explain this answer?
Marginal utility curve of a given consumer is also his?
a)
Demand curve
b)
Supply curve
c)
Indifference curve
d)
Total utility curve
|
|
Priya Patel answered |
As the marginal utility of a consumer increases he demands more of a commodity. Therefore, the marginal utility curve derives its shape from demand curve.
Which of the following utility approach suggests that utility is a measurable and quantifiable entity?- a)Ordinal approach
- b)Cardinal approach
- c)Both cardinal & ordinal
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which of the following utility approach suggests that utility is a measurable and quantifiable entity?
a)
Ordinal approach
b)
Cardinal approach
c)
Both cardinal & ordinal
d)
None of these
|
|
Jayant Mishra answered |
Cardinal Utility
Definition: The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on.The neo-classical economist developed the theory of consumption based on the assumption that utility is measurable and can be expressed cardinally. And to do so, they have introduced a hypothetical unit called as “Utils” meaning the units of utility. Here, one Util is equivalent to one rupee and the utility of money remains constant.
Which of the following will have elastic demand?- a)Fruits
- b)Salt
- c)School uniform
- d)Medicine
Correct answer is option 'A'. Can you explain this answer?
Which of the following will have elastic demand?
a)
Fruits
b)
Salt
c)
School uniform
d)
Medicine
|
|
Nandini Iyer answered |
The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. ... Elasticity is greater when the market is defined more narrowly: food vs. ice cream.
Which of the following assumption is not necessary for the cardinal utility theory?- a)Perfectly competitive market
- b)Constant marginal utility of money
- c)Rationality of the consumer
- d)Cardinal measurability of utility
Correct answer is option 'A'. Can you explain this answer?
Which of the following assumption is not necessary for the cardinal utility theory?
a)
Perfectly competitive market
b)
Constant marginal utility of money
c)
Rationality of the consumer
d)
Cardinal measurability of utility
|
Rajat Patel answered |
Pure or perfect competition is a theoretical market structure in which the following criteria are met: all firms sell an identical product (the product is a "commodity" or "homogeneous"); all firms are price takers (they cannot influence the market price of their product); market share has no influence on price; buyers have complete or "perfect" information – in the past, present and future – about the product being sold and the prices charged by each firm; resources such as labor are perfectly mobile; and firms can enter or exit the market without cost.
Which of the following statements regarding ordinal utility is true?- a)Utility can be measured, but cannot be ranked in order of preferences.
- b)Utility can neither be measured nor can be ranked in order of preferences.
- c)Utility can be measured and can also be ranked in order of preferences.
- d)Utility cannot be measured, but can be ranked in order of preferences.
Correct answer is option 'D'. Can you explain this answer?
Which of the following statements regarding ordinal utility is true?
a)
Utility can be measured, but cannot be ranked in order of preferences.
b)
Utility can neither be measured nor can be ranked in order of preferences.
c)
Utility can be measured and can also be ranked in order of preferences.
d)
Utility cannot be measured, but can be ranked in order of preferences.
|
|
Poonam Reddy answered |
In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
Which of the following is not true?- a)Indifference curves cannot intersect each other
- b)Two indifference curve can be tangent to each other
- c)Indifference curves are convex to the origin
- d)Indifference curves slopes downward to the right
Correct answer is option 'B'. Can you explain this answer?
Which of the following is not true?
a)
Indifference curves cannot intersect each other
b)
Two indifference curve can be tangent to each other
c)
Indifference curves are convex to the origin
d)
Indifference curves slopes downward to the right
|
|
Aryan Khanna answered |
Each indifference curve is convex to the origin, and no two indifference curves ever intersect. Consumers are always assumed to be more satisfied when achieving bundles of goods on higher indifference curves. If a consumer's income increases, the curve will move higher up on a graph because the consumer can now afford more of each type of good.
A consumer reaches equilibrium when?- a)
- b)
- c)
- d)
Correct answer is option 'D'. Can you explain this answer?
A consumer reaches equilibrium when?
a)
b)
c)
d)
|
Shashank Kr. Sarraf answered |
Having explained indiference curves and budget line, we are in a position to explain how a consumer reaches
equilibrium position. A consumer is in equilibrium when he is deriving maximum possible satisfaction from
the
One factor that causes a movement along the demand curve of a commodity- a)Fall in price of the good
- b)Rise in income
- c)Fall in the price of substitute goods
- d)Rise in the price of complementary goods
Correct answer is option 'A'. Can you explain this answer?
One factor that causes a movement along the demand curve of a commodity
a)
Fall in price of the good
b)
Rise in income
c)
Fall in the price of substitute goods
d)
Rise in the price of complementary goods
|
|
Priya Patel answered |
There is movement along a demand curve when a change in price causes the quantity demanded to change. It is important to distinguish between movement along a demand curve, and a shift in a demand curve. Movements along a demand curve happen only when the price of the good changes.
This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Which of the following statements regarding utility is not true?- a)It helps consumers to make choices.
- b)Utility is always measurable.
- c)It is a satisfying power of a commodity.
- d)It is purely a subjective entity.
Correct answer is option 'B'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
a)
It helps consumers to make choices.
b)
Utility is always measurable.
c)
It is a satisfying power of a commodity.
d)
It is purely a subjective entity.
|
|
Arjun Singhania answered |
Utility is an economic term referring to the total satisfaction received from consuming a good or service. The economic utility of a good or service is important to understand because it will directly influence the demand, and therefore price, of that good or service. A consumer's utility is hard to measure, however, but it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility.
_____________ is the addition to total utility by the consumption of one additional unit of the commodity?- a)Average utility
- b)Ordinal utility
- c)Marginal utility
- d)Total utility
Correct answer is 'C'. Can you explain this answer?
_____________ is the addition to total utility by the consumption of one additional unit of the commodity?
a)
Average utility
b)
Ordinal utility
c)
Marginal utility
d)
Total utility
|
|
Priya Patel answered |
The Marginal Utility refers to the additional benefit (utility) a consumer derives from the consumption of one additional unit of good or service.
In other words, marginal utility is the addition to the total utility resulting from the consumption of one additional unit of the commodity. Thus, it can be measured as the change in the total utility obtained from the consumption of an additional unit.
Laser is a device for producing- a)A beam of coherent monochromatic light
- b)Radio-active substances
- c)X-rays
- d)Gamma-rays
Correct answer is option 'A'. Can you explain this answer?
Laser is a device for producing
a)
A beam of coherent monochromatic light
b)
Radio-active substances
c)
X-rays
d)
Gamma-rays
|
|
Zayeda Sulthana answered |
A laser is a device that emits light through a process of optical amplification based on the stimulated emission of electromagnetic radiation.
____________ shows various combinations of two goods that give same amount of satisfaction to the consumer?- a)Isocost curve
- b)Marginal utility curve
- c)Indifference curve
- d)Isoquant
Correct answer is option 'C'. Can you explain this answer?
____________ shows various combinations of two goods that give same amount of satisfaction to the consumer?
a)
Isocost curve
b)
Marginal utility curve
c)
Indifference curve
d)
Isoquant
|
|
Arjun Singhania answered |
Indifference curve is defined as the locus of points on the graph each representing a different combination of two substitute goods, which yield the same utility or level of satisfaction to a consumer. The combinations of goods give equal satisfaction to a consumer.
Therefore, a consumer is indifferent between any two combinations of two goods when it comes to making a choice between them. When these combinations are plotted on the graph, the resulting curve is called indifference curve. This curve is also called as iso-utility curve or equal utility curve.
MU1 + MU2 + ……..MUn represents?- a)Total marginal utility
- b)Total utility of a commodity
- c)Total average utility
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
MU1 + MU2 + ……..MUn represents?
a)
Total marginal utility
b)
Total utility of a commodity
c)
Total average utility
d)
None of the above
|
|
Aryan Khanna answered |
Utility, in ordinary sense, means usefulness. But, in economics, it means want-satisfying power of a commodity or service — the power to satisfy a human want. Utility is addable. One can add utility obtained from each unit of a commodity to get total utility obtained from the entire stock. In other words, by adding marginal utility from successive units, we obtain total utility of the stock.
Consumer surplus is more in the case of______________?- a)Inferior goods
- b)Necessities
- c)Luxuries
- d)Comforts
Correct answer is option 'D'. Can you explain this answer?
Consumer surplus is more in the case of______________?
a)
Inferior goods
b)
Necessities
c)
Luxuries
d)
Comforts
|
|
Alok Mehta answered |
Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price).
An indifference curve indicates, ceteris paribus?- a)Combinations of goods which yield to a producer different levels of satisfaction
- b)Combinations of goods which yield to a consumer equal degrees of satisfaction
- c)Combinations of goods which yield to a consumer different levels of satisfaction
- d)A consumer’s preference for any two goods
Correct answer is option 'B'. Can you explain this answer?
An indifference curve indicates, ceteris paribus?
a)
Combinations of goods which yield to a producer different levels of satisfaction
b)
Combinations of goods which yield to a consumer equal degrees of satisfaction
c)
Combinations of goods which yield to a consumer different levels of satisfaction
d)
A consumer’s preference for any two goods
|
|
Poonam Reddy answered |
In economics, an indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. ... In other words, an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer.
According to Marshall, the law of diminishing marginal utility applies on ___________?- a)All commodities except money
- b)Bank money
- c)Money in the same manner as it applies on the commodity
- d)Cash but not on bank money
Correct answer is option 'A'. Can you explain this answer?
According to Marshall, the law of diminishing marginal utility applies on ___________?
a)
All commodities except money
b)
Bank money
c)
Money in the same manner as it applies on the commodity
d)
Cash but not on bank money
|
|
Naina Sharma answered |
The law of diminishing marginal utility states that with the consumption of every successive unit of commodity yields marginal utility with a diminishing rate. However, there are certain things on which the law of diminishing marginal utility does not apply.
A budget constraint line is a result of?- a)Market price of commodity Y
- b)Market price of commodity X
- c)Income of the consumer
- d)All of above
Correct answer is option 'B'. Can you explain this answer?
A budget constraint line is a result of?
a)
Market price of commodity Y
b)
Market price of commodity X
c)
Income of the consumer
d)
All of above
|
|
Arun Khanna answered |
A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices.
MU1 + MU2 + ……..MUn represents?- a)Total utility of a commodity
- b)Total marginal utility
- c)Total average utility
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
MU1 + MU2 + ……..MUn represents?
a)
Total utility of a commodity
b)
Total marginal utility
c)
Total average utility
d)
None of the above
|
|
Vikas Kapoor answered |
Total utility is the total satisfaction received from consuming a given totalquantity of a good or service. It is the sum of marginal utility which can be expressed as:
TU = (MU1 + MU2+ ............ MUn)
A demand function shows
- a)Relationship between quantity desired and factors affecting it
- b)Relationship between quantity demanded and income only
- c)Relationship between quantity demanded and factors affecting it
- d)Relationship between quantity demanded and price
Correct answer is option 'D'. Can you explain this answer?
A demand function shows
a)
Relationship between quantity desired and factors affecting it
b)
Relationship between quantity demanded and income only
c)
Relationship between quantity demanded and factors affecting it
d)
Relationship between quantity demanded and price
|
|
Priya Patel answered |
The demand function shows the relationship between the quantity demanded and the price of the product.
The doctrine of consumer’s surplus is based on?- a)Law of substitution
- b)Revealed preference theory
- c)Law of diminishing marginal utility
- d)Indifference curve analysis
Correct answer is option 'C'. Can you explain this answer?
The doctrine of consumer’s surplus is based on?
a)
Law of substitution
b)
Revealed preference theory
c)
Law of diminishing marginal utility
d)
Indifference curve analysis
|
|
Arjun Singhania answered |
The theory of consumer’s surplus is based on the law of diminishing marginal utility. The law of diminishing marginal utility claims that as you consumer more of a commodity, the marginal utility derived from it decreases eventually.
If two negatively sloped demand curves intersect then elasticity of demand at the point of intersection will be- a)Same
- b)Different
- c)Infinity
- d)Zero
Correct answer is option 'B'. Can you explain this answer?
If two negatively sloped demand curves intersect then elasticity of demand at the point of intersection will be
a)
Same
b)
Different
c)
Infinity
d)
Zero
|
|
Om Desai answered |
No. elasticity of demand will me more on a flatter curve than on the steeper curve because since price elasticity of demand = %change in /% change in price and hence in the flatter demand curve the change in price will be lesser which will mean that the change in Quantity will be divided by a smaller number.
The value of elasticity in case of a horizontal line will be- a)One
- b)Greater than one
- c)Infinity
- d)Zero
Correct answer is option 'C'. Can you explain this answer?
The value of elasticity in case of a horizontal line will be
a)
One
b)
Greater than one
c)
Infinity
d)
Zero
|
Sai Mishra answered |
price elasticity of demand = % change in quantity demanded / % change in price,
which tends to infinity in case of horizontal demand curve
The total utility divided by the number of units consumed is known as?- a)Average utility
- b)Total utility
- c)Marginal utility
- d)None of above
Correct answer is option 'A'. Can you explain this answer?
The total utility divided by the number of units consumed is known as?
a)
Average utility
b)
Total utility
c)
Marginal utility
d)
None of above
|
|
Ranvir Mishra answered |
Average utility because(iii) Average Utility:
Average Utility is that utility in which the total unit of consumption of goods is divided by number of Total Units. The Quotient is known as Average Utility.
Average Utility is that utility in which the total unit of consumption of goods is divided by number of Total Units. The Quotient is known as Average Utility.
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