Top 50+ Solved Intermediate Micro Economics 1 MCQ Questions Answer
Q. A consumer reaches the point of equilibrium when;
a. MRSxy>Px/Py
b. MRSxy < Px/Py
c. MRSxy=Px/Py
d. MRSxy=Px/Py=MU/TU
Q. A consumer will start buying less of good- X and more of Good-Y, when
a. MUx/Px = MUm
b. MUx/Px < MUy/Py
c. MUy/Py = MUm
d. MUx/Px>MUy/Py
Q. The slope of indifference curve is equal to:
a. One
b. marginal rate of substitution
c. Marginal utility
d. zero
Q. Why is indifference curve convex to origin?
a. Due to law of diminishing marginal utility
b. Due to monotonic preferences
c. Due to continuous decline of
d. Both a and b
Q. Which of the following is not the property of indifference curve:
a. Higher the indifference curves higher the level of satisfaction
b. Two indifference curves cannot intersect each other
c. Indifference curve is concave to origin
d. Indifference curve is downward sloping
Q. Hicks and Allen believed that utility:
a. Cannot be measured
b. Cannot be expressed
c. Can be measured in cardinal
d. Can be measured in ordinal numbers
Q. An indifference curve is related to:
a. Consumer’s income
b. prices of goods X and Y
c. Total utility from goods X and Y
d. choices and preferences of consumer
Q. A shift in budget line, when prices are constant, is due to:
a. change in demand
b. change in income
c. change in preferences
d. change in utility
Q. In case of normal goods, demand curve shows:
a. a negative slope
b. a positive slope
c. zero slope
d. none of these
Q. Law of demand must fail in case of:
a. normal good
b. giffen goods
c. inferior goods
d. none of these
Q. Inferior goods are those whose income effect is:
a. negative
b. positive
c. zero
d. none of these
Q. Which of the following pairs represents substitute goods?
a. car and petrol
b. juice and cold drink
c. bread and butter
d. all of these
Q. Substitution effect takes place when price of the commodity becomes:
a. relatively cheaper
b. relatively dearer
c. stable
d. both (a) and (b)
Q. Total utility is
a. The sum total of marginal utilities
b. total level of satisfaction
c. Increases at a diminishing rate
d. All the above
Q. Which of the following is called gossans first law
a. Law of substitution
b. Law of equi marginal utility
c. Law of diminishing
d. None of the above