CA Foundation Exam > CA Foundation Notes > Business Economics for CA Foundation > MCQ - Theory of Consumer Behavior
MCQ - Theory of Consumer Behavior | Business Economics for CA Foundation PDF Download
| Download, print and study this document offline |
Please wait while the PDF view is loading
Page 1 CPT Section C General Economics Unit 2 Ms. Anita Sharma Page 2 CPT Section C General Economics Unit 2 Ms. Anita Sharma MCQs for Ordinal Approach Page 3 CPT Section C General Economics Unit 2 Ms. Anita Sharma MCQs for Ordinal Approach MCQ.1:Indifference analysis is based on the idea of a) Law of DMU b) Ordinal Utility c) Cardinal Utility d) None Answer: (b) Page 4 CPT Section C General Economics Unit 2 Ms. Anita Sharma MCQs for Ordinal Approach MCQ.1:Indifference analysis is based on the idea of a) Law of DMU b) Ordinal Utility c) Cardinal Utility d) None Answer: (b) MCQ.2; MRS is the rate at which the consumer is willing to substitute one good for another without changing the level of _____. a) income b) price c) satisfaction d) none Answer: (c) Page 5 CPT Section C General Economics Unit 2 Ms. Anita Sharma MCQs for Ordinal Approach MCQ.1:Indifference analysis is based on the idea of a) Law of DMU b) Ordinal Utility c) Cardinal Utility d) None Answer: (b) MCQ.2; MRS is the rate at which the consumer is willing to substitute one good for another without changing the level of _____. a) income b) price c) satisfaction d) none Answer: (c) MCQ.3:Two ICs never intersect each other because a) they can’t be close to each other b) they represent different levels of satisfaction c) both d) None Answer: (b)Read More
|
135 videos|190 docs|88 tests
|
FAQs on MCQ - Theory of Consumer Behavior - Business Economics for CA Foundation
| 1. What is the theory of consumer behavior? |  |
Ans. The theory of consumer behavior is a branch of microeconomics that explains how individual consumers make decisions to allocate their spending on various goods and services to maximize their satisfaction or utility. It studies the preferences, choices, and budget constraints of consumers to understand their behavior in the market.
| 2. What are the key assumptions of the theory of consumer behavior? | |
Ans. The theory of consumer behavior makes the following key assumptions:
1. Rationality: Consumers are rational and aim to maximize their utility or satisfaction.
2. Preferences: Consumers have consistent preferences for goods and services.
3. Budget constraint: Consumers face a budget constraint that limits their spending.
4. Diminishing marginal utility: The marginal utility of a good decreases as the consumer consumes more of it.
5. Substitution effect: Consumers can substitute one good for another to maintain their level of utility.
| 3. What is utility in the theory of consumer behavior? | |
Ans. Utility is a measure of the satisfaction or pleasure a consumer derives from consuming a good or service. In the theory of consumer behavior, the goal of the consumer is to maximize their utility or satisfaction. Utility is subjective and varies from person to person. The theory assumes that consumers can rank their preferences for goods and services and choose the combination that gives them the highest utility within their budget constraint.
| 4. How does the theory of consumer behavior explain the demand curve? | |
Ans. The theory of consumer behavior explains the demand curve as a reflection of consumer behavior in the market. The demand curve shows the relationship between the price of a good and the quantity demanded by consumers. According to the theory, as the price of a good increases, the quantity demanded by consumers decreases due to the substitution effect and income effect. The substitution effect occurs when consumers switch to a cheaper alternative when the price of a good increases, while the income effect occurs when the purchasing power of consumers decreases due to a price increase.
| 5. What are the limitations of the theory of consumer behavior? | |
Ans. The theory of consumer behavior has the following limitations:
1. It assumes that consumers are rational, which may not always be the case in reality.
2. It assumes that consumers have complete information about the goods and services they consume, which may not be true in the real world.
3. It does not consider the influence of social norms, cultural factors, and advertising on consumer behavior.
4. It assumes that consumers have consistent preferences, which may change over time or in different situations.
5. It does not account for the impact of external factors such as government policies, taxes, and subsidies on consumer behavior.
Related Exams
About this Document
|
9.9K Views |
|
4.64/5 Rating |
|
Oct 25, 2024 Last updated |
Document Description: MCQ - Theory of Consumer Behavior for CA Foundation 2024 is part of Business Economics for CA Foundation preparation.
The notes and questions for MCQ - Theory of Consumer Behavior have been prepared according to the CA Foundation exam syllabus. Information about MCQ - Theory of Consumer Behavior covers topics
like and MCQ - Theory of Consumer Behavior Example, for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for MCQ - Theory of Consumer Behavior.
Introduction of MCQ - Theory of Consumer Behavior in English is available as part of our Business Economics for CA Foundation
for CA Foundation & MCQ - Theory of Consumer Behavior in Hindi for Business Economics for CA Foundation course.
Download more important topics related with notes, lectures and mock test series for CA Foundation
Exam by signing up for free. CA Foundation: MCQ - Theory of Consumer Behavior | Business Economics for CA Foundation
Description
Full syllabus notes, lecture & questions for MCQ - Theory of Consumer Behavior | Business Economics for CA Foundation - CA Foundation | Plus excerises question with solution to help you revise complete syllabus for Business Economics for CA Foundation | Best notes, free PDF download
Information about MCQ - Theory of Consumer Behavior
In this doc you can find the meaning of MCQ - Theory of Consumer Behavior defined & explained in the simplest way possible. Besides explaining types of
MCQ - Theory of Consumer Behavior theory, EduRev gives you an ample number of questions to practice MCQ - Theory of Consumer Behavior tests, examples and also practice CA Foundation
tests
|
135 videos|190 docs|88 tests
|
Download as PDF
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Important questions
,MCQ - Theory of Consumer Behavior | Business Economics for CA Foundation
,Sample Paper
,practice quizzes
,Free
,Previous Year Questions with Solutions
,mock tests for examination
,MCQs
,Semester Notes
,MCQ - Theory of Consumer Behavior | Business Economics for CA Foundation
,video lectures
,past year papers
,MCQ - Theory of Consumer Behavior | Business Economics for CA Foundation
,ppt
,Viva Questions
,study material
,Exam
,Objective type Questions
,Extra Questions
,shortcuts and tricks
,Summary
;
Additional Information about MCQ - Theory of Consumer Behavior for CA Foundation Preparation
MCQ - Theory of Consumer Behavior Free PDF Download
The MCQ - Theory of Consumer Behavior is an invaluable resource that delves deep into the core of the CA Foundation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the MCQ - Theory of Consumer Behavior now and kickstart your journey towards success in the CA Foundation exam.
Importance of MCQ - Theory of Consumer Behavior
The importance of MCQ - Theory of Consumer Behavior cannot be overstated, especially for CA Foundation aspirants.
This document holds the key to success in the CA Foundation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
MCQ - Theory of Consumer Behavior Notes
MCQ - Theory of Consumer Behavior Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to MCQ - Theory of Consumer Behavior.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, MCQ - Theory of Consumer Behavior Notes on EduRev are your ultimate resource for success.
MCQ - Theory of Consumer Behavior CA Foundation Questions
The "MCQ - Theory of Consumer Behavior CA Foundation Questions" guide is a valuable resource for all aspiring students preparing for the
CA Foundation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study MCQ - Theory of Consumer Behavior on the App
Students of CA Foundation can study MCQ - Theory of Consumer Behavior alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the MCQ - Theory of Consumer Behavior,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of MCQ - Theory of Consumer Behavior is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup