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
An indifference curve is always?
  • A
    Concave to the origin
  • B
    A vertical straight line
  • C
    L-shaped
  • D
    Convex to the origin
    Correct
2
According to Marshall, the law of diminishing marginal utility applies on ___________?
  • A
    Money in the same manner as it applies on the commodity
  • B
    Bank money
  • C
    Cash but not on bank money
  • D
    All commodities except money
    Correct
3
Consumer’s equilibrium means?
  • A
    The position of frequent movement in all directions
  • B
    The position of rest or maximum satisfaction with given income and prices
    Correct
  • C
    The point from where the consumer starts his consumption
  • D
    The position which the consumer cannot attain because his income is low
4
MU1 + MU2 + ……..MUn represents?
  • A
    None of the above
  • B
    Total marginal utility
  • C
    Total average utility
  • D
    Total utility of a commodity
    Correct
5
A budget constraint line is a result of?
  • A
    All of above
  • B
    Market price of commodity Y
  • C
    Income of the consumer
  • D
    Market price of commodity X
    Correct
6
An indifference curve indicates, ceteris paribus?
  • A
    Combinations of goods which yield to a producer different levels of satisfaction
  • B
    A consumer’s preference for any two goods
  • C
    Combinations of goods which yield to a consumer different levels of satisfaction
  • D
    Combinations of goods which yield to a consumer equal degrees of satisfaction
    Correct
7
The coefficient of price elasticity of demand is always
  • A
    Positive
  • B
    Undefined
  • C
    Negative
    Correct
  • D
    Zero
8
Utility of a good can be explained as a?
  • A
    Difference between what a consumer is willing to pay and actually pays
  • B
    Desire to consume
  • C
    Satisfaction that a consumer derives from the consumption of a particular good.
    Correct
  • D
    Monetary value a consumer gains from consuming a particular good
9
Which of the following statements regarding ordinal utility is true?
  • A
    Utility can be measured and can also be ranked in order of preferences.
  • B
    Utility can neither be measured nor can be ranked in order of preferences.
  • C
    Utility cannot be measured, but can be ranked in order of preferences.
    Correct
  • D
    Utility can be measured, but cannot be ranked in order of preferences.
10
Which of the following curve has a negative slope and cannot interest each other?
  • A
    Indifference curves
    Correct
  • B
    Demand and supply curves
  • C
    None of above
  • D
    Isoquants
11
At what point does total utility starts diminishing?
  • A
    When marginal utility remains constant
  • B
    When marginal utility is negative
    Correct
  • C
    When marginal utility is negative
  • D
    When marginal utility is increasing
12
Total utility curve:
  • A
    Always rises
  • B
    Always falls
  • C
    First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
    Correct
  • D
    First falls and then rises
13
Total utility is maximum when?
  • A
    Average utility is equal to zero
  • B
    Marginal utility is zero.
    Correct
  • C
    Average utility is maximum
  • D
    Marginal utility is maximum
14
The slope of price line throughout its length?
  • A
    Differs from point to point
  • B
    None of above
  • C
    Remains the same
    Correct
  • D
    Is equal on the other side of the mid points
15
Which of the following is not true?
  • A
    Two indifference curve can be tangent to each other
    Correct
  • B
    Indifference curves cannot intersect each other
  • C
    Indifference curves are convex to the origin
  • D
    Indifference curves slopes downward to the right