Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. An Indifference Curve to the right of another represents combinations which are:
a. Indifferent
b. Preferable
c. Inferior
d. Superior
Q. As moving from left to right through an indifference curve, the MRS of X for Y
a. Increases
b. Remains the same
c. Decreases
d. Both A and C
Q. The slope of an indifference curve represents:
a. Price ratio of good X and Y
b. MRTS L,K
c. MRSx,y
d. MRS
Q. In the case of perfect complementaries, the MRS between goods is:
a. Zero
b. Positive
c. Negative
d. None
Q. In a combination of X and Y, if price of Y alone changes, the X intercept will :
a. Rotate upwards
b. Rotate downwards
c. Not be changed
d. Parallel
Q. Commodities bought in larger quantities when income rises are called:
a. Normal goods
b. Inferior goods
c. Giffen goods
d. None
Q. The curve showing the quantity of a good that would be purchased at various income levels:
a. Income Consumption Curve
b. Price Consumption Curve
c. Engel Curve
d. Indifference Curve
Q. Change in demand due to change in relative price alone is called:
a. Income effect
b. Substitution effect
c. Price effect
d. Ratchet effect
Q. If income effect works in the same direction to that of substitution effect, the good is a:
a. Normal good
b. Inferior good
c. Giffen good
d. Superior Good
Q. If income effect works in the direction opposite to that of substitution effect, the good is not:
a. Giffen good
b. Inferior good
c. Normal good
d. Superior Good
Q. Introspection is not the basis of :
a. Marshallian utility analysis
b. Indifference Curve Analysis
c. Revealed Preference Hypothesis
d. Demand Analysis
Q. Strong ordering is a distinguishing feature of the theory given by:
a. Marshall
b. Hicks
c. Samuelson
d. Adam Smith