Top 50+ Solved Introductory Economics 1 MCQ Questions Answer
Q. The basic doctrine of consumers surplus is based on
a. indifference curve analysis
b. revealed preference theory
c. law of substitution
d. law of diminishing marginal utility
Q. According to Marshall, The law of diminishing marginal utility
a. applies on money in the manner in which it applies on commodity
b. do not applies on money except bank money
c. does not applies on bank money but applies on cash
d. applies on all commodities except money
Q. Indifference curve is always
a. concave to the origin
b. convex to the oringin
c. l shaped
d. a straight line
Q. Engel curve for giffen good is
a. positively sloped
b. negatively sloped
c. horizontal straight line
d. vertical straight line
Q. Price effect is
a. income effect – substitution effect
b. substitution effect – income effect
c. income effect + substitution effect
d. income effect + substitution effect- negative effects
Q. For a giffen good, when price falls
a. demand increases at a faster rate
b. demand decreases
c. demand remains constant
d. demand curve has a negative slope
Q. Inferior goods are the goods with
a. falling income effect
b. rising income effect
c. negative income effect
d. positive marshallian effects
Q. Which of the following is called gossans first law
a. law of substitution
b. law of equi marginal utility
c. law of diminishing marginal utility
d. none of the above
Q. When individuals income falls (everything remain the same) his demand for aninferior good
a. rises
b. falls
c. remains the same
d. we cannot say without additional information
Q. According to Marshall consumer surplusis:
a. total utility – marginal utility
b. total utility + marginal utility
c. total utility derived – price
d. price – marginal utility
Q. If both the products X & Y are normal goods
a. slopes down towards right
b. slopes up towards right
c. slopes up towards left
d. slopes down towards left
Q. Which of the following statement is TRUE with regard to total utility
a. total utility is the utility derived from last unit
b. total utility increases at a diminishing range
c. as consumption increases total utility goes on diminishing
d. at saturation point total utility is negative
Q. If negative income effect is less than positive substitution effect : the product will be
a. a normal good
b. an inferior good
c. a giffen good
d. a complementary good