Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. When price of a product falls, more of it is purchased because of
a. the substitution effect
b. the income effect
c. neither substitution effect nor income effect
d. both the substitution and income effects
Q. “Utility or satisfaction is a subjective concept; therefore it could only beranked”. The statement supports
a. cardinal utility theorist
b. ordinal utility theorist
c. behavioral theorist of the firm
d. none of the above
Q. Ordinal utility analysis is otherwise known as
a. gossens second law
b. cardinality approach
c. indifference curve analysis
d. rationality approach
Q. Ordinal utility analysis Was developed by
a. j.r.hicks & r.j.d. allen
b. samualson
c. marshall and jevons
d. slutsky
Q. Total utility curve
a. always rises
b. first falls then rises
c. always falls
d. first rises and then falls after reaching its maximum
Q. A consumer reaches equilibrium when
a. marginal utility is equal to price
b. marginal utility greater than price
c. marginal utility less than price
d. total utility is equal to price
Q. Marshalian cardinal utility analysis assumes
a. marginal utility of money is zero
b. marginal utility of money is decreasing
c. marginal utility of money is increasing
d. marginal utility of money is constant
Q. When individuals income rises (everything remain the same) his demand fora normal good
a. rises
b. falls
c. remains the same
d. negative
Q. When individuals income falls (everything remain the same) his demand fora normal good
a. rises
b. falls
c. remains the same
d. negative
Q. The concept of utility was introduced by
a. marshall
b. hicks and allen
c. geremy bentham
d. gossen
Q. Cardinal utility analysis to consumer equilibrium was developed by
a. marshall
b. hicks and allen
c. geremy bentham
d. gossen
Q. MC at any level of output is given by
a. slope of tc curve
b. slope of tvc curve
c. slope of either tc or tvc
d. slope of tfc
Q. The cost that cannot be recovered once spent
a. accounting cost
b. fixed cost
c. implicit cost
d. sunk cost