Theory Of Consumer Behaviour CBSE Questions & Answers

Theory Of Consumer Behaviour

This is Economics Class 12 Theory of Consumer Behaviour CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Which of the following statements regarding utility is not true?
  • A
    It is a satisfying power of a commodity.
  • B
    It is purely a subjective entity.
  • C
    Utility is always measurable.
    Correct
  • D
    It helps consumers to make choices.
2
Which of the following utility approach is based on the theory of Alfred Marshall?
  • A
    Ordinal utility approach
  • B
    None of these
  • C
    Cardinal utility approach
    Correct
  • D
    Independent variable approach
3
_____________ is the addition to total utility by the consumption of one additional unit of the commodity?
  • A
    Total utility
  • B
    Ordinal utility
  • C
    Average utility
  • D
    Marginal utility
    Correct
4
Which of the following utility approach suggests that utility is a measurable and quantifiable entity?
  • A
    None of these
  • B
    Ordinal approach
  • C
    Cardinal approach
    Correct
  • D
    Both cardinal & ordinal
5
____________ shows various combinations of two goods that give same amount of satisfaction to the consumer?
  • A
    Isoquant
  • B
    Indifference curve
    Correct
  • C
    Isocost curve
  • D
    Marginal utility curve
6
Indifference curve slopes___________?
  • A
    Downward to the right
    Correct
  • B
    Downward to the left
  • C
    Upward to the left
  • D
    Upward to the right
7
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
  • A
    Consumer surplus
    Correct
  • B
    Consumer burden
  • C
    Optimum price
  • D
    Price gap
8
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
9
The want satisfying power of a commodity is known as:
  • A
    Supply
  • B
    Consumption
  • C
    Utility
    Correct
  • D
    Demand
10
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.
    Correct
  • D
    None of above
11
The total utility divided by the number of units consumed is known as?
  • A
    Total utility
  • B
    Average utility
    Correct
  • C
    Marginal utility
  • D
    None of above
12
Utility is measured in terms of?
  • A
    Utils
    Correct
  • B
    Centimeter
  • C
    Gram
  • D
    Seconds
13
The concept of marginal utility was developed by?
  • A
    Alfred Marshall
    Correct
  • B
    Robbins
  • C
    Hicks & Allen
  • D
    Paul Samuelson
14
Indifference curve represents?
  • A
    More than two commodities
  • B
    Four commodities
  • C
    Only two commodities
    Correct
  • D
    Less than two commodities
15
Consumer’s surplus is also known as?
  • A
    Differential surplus
  • B
    Elasticity of demand
  • C
    Buyer’s surplus
    Correct
  • D
    Indifference surplus