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
👍16👎1
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.
👍12👎1
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
👍12👎1
The Indifference curve approach to consumer's behaviour is based on:
Anonymous Quiz
15%
Strong ordering
18%
Weak ordering
58%
Cardinal utility hypothesis
9%
None of the above
👍10👎3
Normally the demand curve will have a _______________ shape.
Anonymous Quiz
25%
Upward sloping
49%
Downward sloping
16%
Vertical
10%
Horizontal
👍12👎2
The elasticity for the demand of durable goods is __________.
Anonymous Quiz
27%
Zero
32%
Equal to unity
28%
Greater than unity
13%
Less than unity
👍15👎2
A perfectly competitive market has
Anonymous Quiz
20%
firms that set their own prices.
18%
only one seller.
12%
at least a few sellers.
49%
many buyers and sellers
👍12👎5
If increase in the price of blue jeans leads to a decrease in the demand for Tennis shoes, then blue jeans and tennis shoes are
Anonymous Quiz
45%
complements
39%
inferior goods.
16%
normal goods.
👍10👎3
The law of demand states that an increase in the price of a good
Anonymous Quiz
17%
increases the supply of that good.
40%
decreases the quantity demanded for that good along its demand curve.
28%
decreases the demand for that good.
15%
increases the quantity supplied of that good along its supply curve
👍14
If an increase in the price of a good has no impact on the total revenue in that market, demand must be
Anonymous Quiz
44%
price inelastic.
37%
unit price elastic.
19%
price elastic.
👍14👎6