There are no exceptions to the Law of demand in the case of
Anonymous Quiz
36%
Giffen goods
28%
Normal Goods
25%
Articles of conspicuous consumption
11%
Ignorance of the buyer
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Which of the following is the basis of diminishing marginal utility?
Anonymous Quiz
54%
Law of demand
23%
Laws of return
17%
Law of supply
6%
None of the above
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What is the law that defines the demand curve to slope downward known as?
Anonymous Quiz
59%
Diminishing marginal utility
19%
Utility maximisation
12%
Utility minimisation
10%
Consumer equilibrium
👍6
Why is a consumer spending restricted?
Anonymous Quiz
25%
Due to the utility maximization
41%
Due to the budget constraint
16%
Due to the demand curve
17%
Due to the marginal utility
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Moving along an indifference curve the:
Anonymous Quiz
17%
Consumers prefer some of the consumption points to others.
48%
Marginal rate of substitution for a good increase as more of the good is consumed.
27%
Marginal rate of substitution is constant.
9%
Consumers do not prefer one consumption point to another.
👍8
the slope of the indifference curve is equal to which of the following?
Anonymous Quiz
13%
One
33%
Marginal utility
48%
Marginal rate of substitution
6%
None of these
👍8
Why is the indifference curve convex to origin?
Anonymous Quiz
21%
Due to continuous decline of marginal rate of substitution
40%
Due to law of diminishing marginal utility
17%
Due to monotonic preferences
21%
Both a and b
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which of the following is not the property of indifference curves?
Anonymous Quiz
24%
Higher the indifference curve, higher is the level of satisfaction.
23%
Indifference curve is downward sloping.
37%
Indifference curve is concave to origin.
16%
Two indifference curves cannot intersect each other.
👍8
Hicks and Allen believed that utility:
Anonymous Quiz
31%
Can be measured in cardinal numbers
39%
Can be measured in ordinal numbers
21%
Cannot be measured
8%
Cannot be expressed
👍10
as we move down the indifference curve from left to right, the slope of the indifference curve tends to which of the following?
Anonymous Quiz
16%
Unity
33%
Zero
38%
Decline
13%
Rise
👍11
In the indifference map, a higher IC indicates which of the following?
Anonymous Quiz
15%
Lower level of satisfaction
49%
Higher level of satisfaction
20%
Same level of satisfaction
16%
Either higher or same level of satisfaction
👍10👎4
Two indifference curves cannot cut each other because of which of the following?
Anonymous Quiz
34%
They represent those combinations of two goods that give the same satisfaction.
21%
The slope is downwards.
35%
Each indifference curve represents a different level of satisfaction.
11%
They are convex to origin.
👍10
An indifference curve is related to which of the following?
Anonymous Quiz
26%
Choices and preferences of consumer
32%
Prices of goods X and Y
16%
Consumer’s income
26%
Total utility from goods X and Y
👍16
An Indifference curve slope down towards right since more of one commodity and less of another result in which of the following?
Anonymous Quiz
21%
Decreasing expenditure
41%
Maximum satisfaction
22%
Greater satisfaction
16%
Same satisfaction
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Which one of the following is not a property of indifference curve?
Anonymous Quiz
18%
Negatively sloping.
23%
Convex to the point of origin.
44%
Indifference curves necessarily have to be parallel.
16%
Two indifference curves do not intersect each other.
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A rectangular hyperbola shaped demand curve on all its points has
Anonymous Quiz
25%
Equal slopes of the price demand curve
32%
Price elasticity equal to unity
20%
Varying price elasticity
22%
Both slope and price elasticity equal
👍10
According to the IC approach, at the point of equilibrium:
Anonymous Quiz
20%
The slope of I C> slope of the price line
28%
The slope of IC < slope of the price line
21%
The slope of IC ≠ slope of the price line
32%
The slope of IC= slope of the price line
👍8
The substitution effect describes how
Anonymous Quiz
22%
an increase in income causes buyers to purchase different products
20%
the opportunities for minorities are affected by affirmative action's policies
37%
additional satisfaction from each additional unit of the product consumed in a given time decreases
21%
a price increase creates incentives for buyers to seek alternatives
👍12
Ordinal utility analysis of the consumer's behaviour is considered superior to the cardinal utility analysis mainly due to
Anonymous Quiz
25%
Assumption of the rationality of the consumer’s behaviour.
26%
Possibility of the derivation of the consumer's demand.
26%
Bifurcation of price effects into income and substitution effects.
23%
Consideration of the available limited resources for satisfying consumer’s demand.
👍6
In case the quantity of a commodity demanded changes due to change in price of the commodity, it is called
Anonymous Quiz
18%
Increase or decrease in demand
34%
Expansion or contraction of demand
37%
Law of demand
10%
Positive change in demand
👍9👎2
The revealed preference theory of consumer’s behaviour is not based on
Anonymous Quiz
18%
Consistency
28%
Strong Ordering
43%
Negative income elasticity of demand
11%
Transitivity
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