 Plus Two Economics-Online Exam with Score-Chapter 2

# Plus Two Economics-Online Exam with Score-Chapter 2

Chapter 2 – Theory of Consumer Behaviour-Online Practice Exam in English

Chapter 2

# Question

1) Indifference curve approach is the contribution of ?

Alfred Marshall

Lionel Robins

JR Hicks

PA Samuelson

# Question

2) What is the slope of the budget line if, price of good 1 is ₹10 and price of good 2 is ₹5 ?

-2

10

5

-.2

# Question

3) Identify the nature of demand curve when elasticity of demand is equal to 1 ?

Parallel to x axis

Parallel to y axis

Rectangular hyperbola

None of these

# Question

4) A fall in the price of a commodity, holding everything else constant, results an increase in demand and is referred to as ?

Increase in demand

Contraction in demand

Decrease in demand

Expansion in demand

# Question

5) What is the price elasticity of demand if, there is no change in expenditure as a result of change in price ?

O

>1

<1

= 1

# Question

6) Consider the equation y = f (x), then the variable Y is?.

Exogenous

Independent

Dependent

Unpredictable

# Question

7) Which of the following is the most important determinant of demand?

Income

Price

Tastes and Preferences

Climate

# Question

8) In the given budget line equation 5X1 + 2X2 = 20, what is the vertical intercept ?

5

2

7

10

# Question

9) A collection of indifference curves is called

Demand

Budget line

Equilibrium

Indifference map

# Question

10) Mr. A consumes two fruits : Apple and Orange. He has monotonic preference, which implies that:

He prefers a bundle with more apple and orange

He prefers a bundle with less quantity of both the fruits

He prefers a bundle with more of at least one of the fruits and no less of the other

He prefers no specific bundle

# Question

11) Pick out the correct equation for showing consumer’s budget constraint ?

P1X1 + P2X2 = M

P1X1 + P2X2 ≤ M

P1X1 + P2X2 ≥ M

P1X1 + P2X2 > M

# Question

12) The name given to the commodities using together ?

Complimentary goods

Substitutable goods

Inferior good

Normal good

# Question

13) Want satisfying power of a commodity is called ?

Want

Demand

Utility

Value

# Question

14) When the income of the consumer was ₹500, he buys 4kg of good y. His income increased by ₹100, then he reduced the consumption of good y by 2 units. What is the type of good y ?

Substitutable good

Inferior good

Luxury goods

Normal good

# Question

15) Price of a commodity increased from 10 to 15, as a result quantity demanded decreased from 100 to 75. What is the value of elasticity?

5

.5

15

10

# Question

16) What is called if demand increases as a result of decrease in price ?

Contraction in demand

Decrease in demand

Expansion in demand

Increase in demand

# Question

17) Elasticity in a rectangular hyperbola type demand curve will be ?

>1

1

.1

<

# Question

18) In the given equation q= a-bp, slope is represented by?

p

b

-b

a

# Question

19) Slope of a IC is represented by ?

DMU

DMRS

Price ratio

None of these

# Question

20) Suppose a consumer’s preferences are monotonic, which among the following bundles consumer will select ?

(2,1)

(1,1)

(2,2)

(2,3)

# Question

21) In drawing an individual demand curve, all but one of the following are kept constant ?

Income of the consumer

Price of the commodity

Price of related question

Tastes and preferences

# Question

22) Which of the following goods has more elastic demand ?

Rice

Computer

Life saving medicine

Electricity

# Question

23) Find the odd one out

Tea and Coffee

Car and Petrol

Sugar and Tea

# Question

24) In the below given diagram, movement of budget line from AB to AB1 is due to Decrease in the price of good 1

Decrease in the price of good 1

Increase in the price of good 2

Decrease in the price of good 2

# Question

25) A demand curve is given, in which identify elasticity at point ‘M’ 1

>1

<1

0

# Question

26) The relationship between demand and determinants of demand is called

Demand

Utility function

Demand function

Price function

# Question

27) Change in demand caused by change in price is called

Income effect

Price effect

Demand effect

Law of demand

# Question

28) In the below diagram identify point ‘C’ Under utilisation

Preferred bundle

Inferior bundle

Equal satisfaction

# Question

29) The rate at which one good is substituted for another is called

Substitution effect

Rate of substitution

Budget line

None of these

# Question

30) A linear demand equation is given as q = a – bp. Here , if price = 0 then demand will be

-b

b

q

a

# Question

31) In the below diagram , movement of demand curve from DD to D1D1 is due to Increase in demand

Decrease in demand

Expansion in demand

Contraction in demand

# Question

32) The concept ‘ elasticity ‘ is first introduced by economist

JM Keynes

Alfred Marshal

David Ricardo

# Question

33) Two individual demand curves are give as q1 =  20 – p and q2 = 10 – 2p, then the market demand equation (Dm) will be

30 + 2p

30 – 2p

30 – 3p

30 + 3p

# Question

34) In the below given indifference curve, when comparing point D with any point in the IC, point D represents Monotonic preference

Inferior bundle

Equal preference

None of these

# Question

35) In the equation , q = 10 – 2p, if price is given as 3. What will be the quantity demanded?

7

12

15

4

# Question

36) A consumer can afford to buy 6 units of good 1 and 8 units of good 2 if the consumer spends his entire income. The prices of two goods are ₹6 and ₹8 respectively. How much will be the income of the consumer?

36

14

48

100

# Question

37) A graph is given below, in which point E represents Optimum bundle

Equilibrium

Maximum satisfaction

All of the above

# Question

38) In the below given diagram, points,point C and D does not indicate equilibrium because They are not tangent at mid point of budget line

IC cuts budget line

Slope of the budget line and IC are not same

None of these

# Question

39) From the below equations, which equation represents budget constraint

P1X+ P2X = M

P1X+ P2X > M

P1X+ P2X < M

P1X+ P2X ≤ M

# Question

40) Representation of preferences in terms of utility numbers is called

Demand function

Equilibrium

Utility function

Preferences of the consumer

# Question

41) Cardinal approach was put forwarded by

JR Hicks

Alfred Marshal

PA Samuelson

# Question

42) As we consume more and more unit of a same commodity the utility derived from the subsequent units diminishes. This is called

Law of Demand

Law of Diminishing Marginal Utility

Law of utility

None of the above

# Question

43) Watch the below given diagram. In the diagram, movement from A to B is called Increase in demand

Decrease in demand

Expansion in Demand

Contraction in demand

# Question

44) Find the odd one

Doctor

Lawyer

Farmer

Teacher

# Question

45) A linear demand function is represented by q = a -bp. The value of a, b and p are given as 50, 15 and 2 respectively. What is the quantity demanded (q)?

20

50

100

30

# Question

46) Select more elastic good from the following

Electricity

Salt

Match box

Computer

# Question

48) From the below given goods, select one good on which law of demand is applicable

Diamonds

Emergency medicines

Luxury car

Apple

# Question

49) Zero elastic demand curve is

Parallel to x axis

Parallel to y axis

Negatively sloping

Rectangular Hyperbola

# Question

50) A unitary elastic demand curve represents

Infinite elasticity

Zero elasticity

Constant elasticity

None of the above

This test is prepared by UAH 