(A) Consumer wants to give up lesser units of Y in exchange for good X
(B) Consumer wants to give up more units of Y in exchange for good X
(C) Consumer wants to give up same units of Y in exchange for good X
(D) None of the above
Tag: Economics Mcqs With Answers
MRS is defined as:
(A) Amount of good Y given up in exchange for good X such that total utility is constant
(B) Amount of good X given up in exchange for good Y such that total utility is constant
(C) Amount of good Y given up in exchange for good X such that total utility rises
(D) Amount of good Y given up in exchange for good X
Marshall consumer surplus is the area between:
(A) MU curve and the market price
(B) Demand curve and the price axis below the market price
(C) Demand curve and the price axis above the market price
(D) None of the above
Consumer surplus is the difference between:
(A) Amount consumer is willing to pay minus amount actually paid by the consumer
(B) Amount consumer actually paid minus the amount consumer is wiling to pay
(C) Amount consumer actually paid minus the amount charged by the seller
(D) Amount consumer is willing to pay minus the amount producer is wanting
If consumption of the good is not continuous or there are varieties in the good then which law withhold:
(A) Law of diminishing marginal utility
(B) Law of increasing marginal utility
(C) Law of diminishing returns
(D) Law of constant returns
MU of the commodity when no commodity is consumed is:
(A) Constant
(B) Maximum
(C) Falling
(D) Rising
As the consumer has more units of a commodity, his total utility from the commodity:
(A) Increases less than in proportion, reaches a maximum and then falls
(B) Increases less than in proportion and then falls
(C) Increases more than in proportion and then reaches a maximum
(D) Falls, becomes zero and then negative
In Marginal utility theory, utility is an:
(A) Cardinal concept
(B) Ordinal concept
(C) Both of the above
(D) None of the above