Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. The want satisfying power of a commodity:
a. Satisfaction
b. Utility
c. Value
d. Marginal Utility
Q. Change in utility resulting from one unit change in consumption is called:
a. Total Utility
b. Extra Utility
c. Marginal Utility
d. Average Utility
Q. When Marginal Utility is negative, Total Utility:
a. Declines
b. Increases
c. Remains the same
d. None of these
Q. Measurable utility is the postulate of:
a. Neo-Classical school
b. Ordinalist school
c. Behaviourist school
d. Keneysians
Q. Which of the following is Gossen’s first law:
a. Law of Diminishing Marginal Utility
b. Law of Equi Marginal Utility
c. Law of substitution
d. Law of Diminishing Returns
Q. In the case of a free good, the consumer will be in equilibrium when:
a. MU = P
b. MU = 0
c. TU = 0
d. TU =1
Q. Change in demand due to a change in the price of related good :
a. Cross demand
b. Price demand
c. Income demand
d. None of these
Q. The Price and quantity relationship for an inferior good is:
a. Direct
b. Inverse
c. Positive
d. Indirect
Q. In the case of normal goods, the quantity demanded varies inversely with:
a. Price of good
b. Income of the consumer
c. Fashion of the good
d. Savings
Q. Which of the following is a cardinalist approach to demand analysis:
a. Marshallian utility analysis
b. Indifference Curve Analysis
c. Revealed Preference Theory
d. None of these
Q. The convexity of an indifference curve shows:
a. Diminishing MRS
b. Increasing MRS
c. Constant MRS
d. None
Q. A movement from one point to another along an indifference curve makes the satisfaction:
a. Increasing
b. Decreasing
c. Unaltered
d. None