Class XI Eco Chapter 2 Test Paper 2021 Part II

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UTILITY ANALYSIS AND CONSUMER EQUILIBRIUM

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1. A consumer in consumption of two commodities A and B is at equilibrium. The prices of A And B are Rs10 and Rs20 respectively and the marginal utility of product B is 50. What will Be the marginal utility of product A? *

1 point

100

250

2. The law of Diminishing Marginal Utility will not hold good if income of the consumer: *

1 point

Increases

Decreases

Remains constant

Either

3. As per ordinal Approach : *

1 point

Measurement of Utility is not possible it can not be ranked

Measurement of utility is possible but it can not be ranked

Measurement of Utility is not possible in cardinal numbers but it can be ranked

None of these

4. Marginal Utility : *

1 point

Is always positive

is always negative

Can be positive or negative but not zero

Can be positive or negative or Zero

5. Mollie derives total utility of 10 utils after having 4 mangoes and total utility on consuming 5 Mangoes is 9. What is her marginal utility for the 5th mango? *

1 point

+1 util

o util

-1 util

9 utils

6. After reaching the point of satiety. Consumption of additional units the commodity cause: *

1 point

TU falls and MU increases

Both TU and MU increase

TU falls and MU falls and becomes negative

TU becomes negative and MU falls

7. According to one of the assumption of Law of Diminishing Marginal Utility, there should be __________ Between the consumption of one unit and another unit. *

1 point

Equal time gap

No time gap

Long time gap

Any of these

8. Budget line shows: *

1 point

Possible combination of two goods that a consumer can by spending his entire income at The given prices.

Possible combination of two goods which cost less than or equal to consumer’s money Income

Possible combination of two goods among which the consumer is indifferent.

All these

9. MUx of X is 40 and MUy of Y is 30. If the price of Y is Rs 9, then price of X at equilibrium will be______ *

1 point

Rs9

Rs30

Rs 15

Rs 12

10. The farther the Indifference Curve is from the origin, then: *

1 point

Higher is the satisfaction level

Lower is the satisfaction level

Same satisfaction level with will be obtained

Nothing can be said about satisfaction

11. The consumer is in equilibrium when Marginal Utility from a Commodity equals: *

1 point

Demand for that Commodity

Supply of that Commodity

Price of the commodity

All of these

12. An Indifference Curve represents all those combinations of two goods which give: *

1 point

No satisfaction to the Consumer

Lower satisfaction to the consumer

Higher satisfaction to the Consumer

Equal satisfaction to the Consumer

13. The consumer is in equilibrium at a point where the budget line: *

1 point

Is above an indifference curve.

Is below an indifference curve.

Is tangent to an indifference curve?

Cuts an indifference curve.

14. Which of the shaded area in the diagrams below represent total utility? *

1 point

15. If Marginal Rate of Substitution is constant throughout, the Indifference curve will be: (Chose the correct alternative) *

1 point

Parallel to the x-axis.

Downward sloping concave.

Downwards sloping convex

Downward sloping straight line

16. If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be: (Choose the correct alternative) *

1 point

Downward sloping convex

Downwards sloping concave

Downward sloping straight line

Upward sloping convex

17. A consumer consumes only two goods. If price of one of the goods falls, the indifference Curve (Choose the correct alternative) *

1 point

Shifts upwards

Shifts downwards

Can shift both upwards or downwards

Does not shift

18. A consumer consumes only two goods X and Y both priced at Rs 4 per unit. If the consumer Chooses a combination of these two goods with Marginal Rate of Substitution equal to, 4, Then the consumer will: *

1 point

Buy more units of X

Buy more units of Y

Buy more units of both, X And Y

Buy less units of both, X and Y

19. A consumer consumes only two goods X and Y whose Prices are Rs3 and Rs4 per unit Respectively. if the consumer chooses a combination of the two goods with marginal utility Of X equal to 4 and that of Y equal to 3, is the consumer in equilibrium, then the consumer Will. *

1 point

Buy more units of both, X and Y

Buy more units of both, Y and less of X

Buy more units of X and less of Y

Buy less units of both, X and Y

20. In the following diagram, the situation of consumer’s Equilibrium and Point of Satiety are Represented buy the points: *

1 point

Point C and Point E

Point E and Point B

Point B and Point E

Point B and Point C

21. Which Indifference Curve represents the highest level of satisfaction? *

1 point

IC1

IC2

IC3

None of these

22. An increase in income will lead to following change in Budget Line: *

1 point

23. The rotation of budget line in the following diagram is due to: *

1 point

Decrease in price of Apples

Increase in price of Apples

Increase in price of Bananas

Decrease in Price of Bananas

24. Marginal utility is : *

1 point

The utility from first unit of a commodity consumed.

The utility from the last unit consumed.

Total utility divided by number of units consumed.

Always positive.

25. Total Utility is _____________. *

1 point

The sum of marginal utilities

Utility from first unit x number of units consumed

Always increasing

Utility from last unit x number of units consumed

26. Which of the following can be referred to as point of satiety’? *

1 point

Marginal Utility is negative

Marginal utility is zero

Total Utility is rising

Total Utility

27. At the point of Satiety: *

1 point

MU is Negative

MUis zero

MU is Rising

None of these

28. A consumer consumes only two goods. If price of one of goods falls, the indifference curve: *

1 point

Shifts leftward

Shifts rightward

Can shift both leftward and rightward

Does not dhift

29. Slope of an Indifference Curve is measured by : *

1 point

Marginal Rate of Substitution

Marginal Rate of Transformation

Marginal opportunity cost

None of these

30. If MUy =20: MUx =60: Price of Y=Rs 4, then what will be the price of X at Equilibrium: *

1 point

Rs 14

Rs 3

Rs 12

Rs 4

31. Market Rate of Exchange also denotes: *

1 point

Market Rate of Exchange also denotes:

Slope of Budget Line

Slope of Indifference Curve

None of these

32. When marginal utility is zero, total utility is: *

1 point

Zero

Minimum

Maximum

Negative

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