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
What is the relationship between slope and the demand curve?
  • A
    less than 1
  • B
    1
  • C
    0
  • D
    \({{\Delta p} \over {\Delta q}}\)
    Correct
2
A rise in the income of the consumer leads to a fall in the demand for commodity ‘x’. What type of good is commodity ‘x’?
  • A
    Inferior good
    Correct
  • B
    Snob goods
  • C
    Necessity good
  • D
    Normal good
3
The substitute goods of a normal good are those that can be used
  • A
    Does not exist
  • B
    Along with each other
  • C
    Together
  • D
    In place of each other
    Correct
4
One factor that causes a leftward shift of the demand curve out of the following is
  • A
    Rise in the price of complementary goods
  • B
    Fall in the price of substitute goods
  • C
    Rise in income
  • D
    Fall in income
    Correct
5
One factor that causes a movement along the demand curve of a commodity
  • A
    Rise in income
  • B
    Fall in the price of substitute goods
  • C
    Rise in the price of complementary goods
  • D
    Fall in price of the good
    Correct
6
The marginal product is above the average product curve, when the average product is:
  • A
    Decreasing
    Correct
  • B
    None of above
  • C
    Increasing
  • D
    Becomes constant
7
What does one take on two axes while drawing an indifference curve?
  • A
    Quantity along X axis and price along Y axis
  • B
    Price of the two goods
  • C
    Quantity and price of a good
  • D
    Quantities of two goods
    Correct
8
A consumer reaches equilibrium when?
  • A
    \({{MUx} \over {Py}}{tex}={tex}{{MUy} \over {Py}}\)
  • B
    {tex}{{MUxy} \over {Py}}{tex}={tex}{{MUy} \over {Py}}{tex}
  • C
    \({{MUx} \over {Px}}{tex}={tex}{{MUy} \over {Py}}\)
    Correct
  • D
    \({{MUyx} \over {Px}}{tex}={tex}{{MUy} \over {Py}}\)
9
If the value of \({{MUx} \over {Px}}{tex}is more than{tex}{{MUy} \over {Py}}\), the consumer__________?
  • A
    Will reduce the consumption of good X and increase good Y
  • B
    Will increase the consumption of good X and reduce good Y
    Correct
  • C
    Will consume less of good X and good Y
  • D
    Will consume more of good X and good Y
10
A demand function shows
  • A
    Relationship between quantity demanded and price
  • B
    Relationship between quantity desired and factors affecting it
  • C
    Relationship between quantity demanded and factors affecting it
    Correct
  • D
    Relationship between quantity demanded and income only
11
The tangency between price line and indifference curve shows?
  • A
    Marginal rate of substitution equals to income
  • B
    MRSxy = \({{Py} \over {Px}}\)
  • C
    MRSxy =\({{Px} \over {Py}}\)
    Correct
  • D
    MRS=P
12
Consumer surplus is more in the case of______________?
  • A
    Comforts
  • B
    Inferior goods
  • C
    Necessities
    Correct
  • D
    Luxuries
13
Marginal utility can be written in terms of symbol as__________?
  • A
    None of above
  • B
    MUn = TUn - TU n-1
  • C
    MUn = TU n-1 - TUn
  • D
    MUn = TUn + TU n-1
    Correct
14
The value of elasticity in case of a downward sloping demand curve will be
  • A
    Greater than one
  • B
    One
  • C
    Infinity
  • D
    Less than one or greater than one
    Correct
15
The value of elasticity in case of a rectangular hyperbola demand curve will be
  • A
    Less than one or greater than one
  • B
    One
    Correct
  • C
    Greater than one
  • D
    Infinity