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 assumption is not necessary for the cardinal utility theory?
  • A
    Cardinal measurability of utility
  • B
    Rationality of the consumer
  • C
    Constant marginal utility of money
  • D
    Perfectly competitive market
    Correct
2
The doctrine of consumer’s surplus is based on?
  • A
    Indifference curve analysis
  • B
    Law of diminishing marginal utility
    Correct
  • C
    Revealed preference theory
  • D
    Law of substitution
3
When the total utility is increasing at an increasing rate, marginal utility is___________?
  • A
    Negative
  • B
    Increasing
    Correct
  • C
    Decreasing
  • D
    Constant
4
At the saturation point of commodity X, the MUx is?
  • A
    Positive
  • B
    Zero
    Correct
  • C
    None of these
  • D
    Negative
5
A curve which first moves upwards then downwards is__________?
  • A
    Marginal utility curve
  • B
    Total utility curve
    Correct
  • C
    Demand curve
  • D
    Indifference curve
6
Which of the following is one of the assumptions of the indifference curve analysis?
  • A
    Independent utility
  • B
    Constant marginal utility of money
  • C
    Cardinal utility
  • D
    Ordinal utility
    Correct
7
At the point of tangency the slope of the indifference curve is ___________?
  • A
    Greater than the price line
  • B
    Less than the price line
  • C
    The same as the price line
    Correct
  • D
    None of these
8
A movement along a given indifference curve is known as?
  • A
    Substitution effect
    Correct
  • B
    Price effect
  • C
    None of above
  • D
    Income effect
9
Marginal utility curve of a given consumer is also his?
  • A
    Indifference curve
  • B
    Demand curve
    Correct
  • C
    Supply curve
  • D
    Total utility curve
10
Indifference curve depicts
  • A
    An equal quantity curve of a consumer
  • B
    Affordability
  • C
    None of above
  • D
    Satisfaction
    Correct
11
If two negatively sloped demand curves intersect then
  • A
    Elasticity cannot be determined in this case
  • B
    Elasticity will be same throughout both
  • C
    The steeper will have higher elasticity
  • D
    The flatter will have higher elasticity
    Correct
12
If two negatively sloped demand curves intersect then elasticity of demand at the point of intersection will be
  • A
    Different
  • B
    Same
    Correct
  • C
    Zero
  • D
    Infinity
13
Which of the following will have inelastic demand?
  • A
    petrol
  • B
    Fruits
  • C
    Medicine
    Correct
  • D
    ice-cream
14
The value of elasticity in case of a horizontal line will be
  • A
    Infinity
    Correct
  • B
    One
  • C
    Zero
  • D
    Greater than one
15
Which of the following will have elastic demand?
  • A
    Medicine
  • B
    Fruits
    Correct
  • C
    Salt
  • D
    School uniform