Micro Economics MCQ
Micro Economics MCQ Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
111. Measurable utility is the postulate of:
A. Neo-Classical school
B. Ordinalist school
C. Behaviourist school
D. Keneysians
Answer:A
112. Which of the following is Gossen’s first law:
A. Law of Diminishing Marginal Utility
B. Law of Equi Marginal Utility
C. Law of substitution
D. Law of Diminishing Returns
Answer:A
113. In the case of a free good, the consumer will be in equilibrium when:
A. MU = P
B. MU = 0
C. TU = 0
D. TU =1
Answer:B
114. Change in demand due to a change in the price of related good :
A. Cross demand
B. Price demand
C. Income demand
D. None of these
Answer:A
115. The Price and quantity relationship for an inferior good is:
A. Direct
B. Inverse
C. Positive
D. Indirect
Answer:B
116. In the case of normal goods, the quantity demanded varies inversely with:
A. Price of good
B. Income of the consumer
C. Fashion of the good
D. Savings
Answer:A
117. Which of the following is a cardinalist approach to demand analysis:
A. Marshallian utility analysis
B. Indifference Curve Analysis
C. Revealed Preference Theory
D. None of these
Answer:A
118. Which is relevant for an indifference curve:
A. Convex to the origin
B. Concave to the origin
C.Sloping upward from Left to Right
D. Two ICs intersect each other.
Answer:A
119. The convexity of an indifference curve shows:
A. Diminishing MRS
B. Increasing MRS
C. Constant MRS
D. None
Answer:A
120. A movement from one point to another along an indifference curve makes the satisfaction:
A. Increasing
B. Decreasing
C. Unaltered
D. None
Answer:C
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