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.
131. Change in demand due to change in relative price alone is called:
A. Income effect
B. Substitution effect
C. Price effect
D. Ratchet effect
Answer:B
132. Substitution Effect is:
A. Always negative
B. Always positive
C. Seldom negative
D. Zero
Answer:A
133. If income effect works in the same direction to that of substitution effect, the good is a:
A. Normal good
B. Inferior good
C. Giffen good
D. Superior Good
Answer:A
134. If income effect works in the direction opposite to that of substitution effect, the good is not:
A. Giffen good
B. Inferior good
C. Normal good
D. Superior Good
Answer:C
135. Introspection is not the basis of :
A. Marshallian utility analysis
B. Indifference Curve Analysis
C. Revealed Preference Hypothesis
D. Demand Analysis
Answer:C
136. The theory which is based on observation:
A. Cardinal utility analysis
B. Indifference Curve analysis
C. Revealed Preference Theory
Answer:C
137. The ordering of combinations on an indifference curve is:
A. Weak
B. Strong
C. Average
D. None
Answer:A
138. Strong ordering is a distinguishing feature of the theory given by:
A. Marshall
B. Hicks
C. Samuelson
D. Adam Smith
Answer:C
139. Father of Economics:
A. Marshall
B. David Ricardo
C. Adam Smith
D. J.M. Keynes
Answer:C
140. The Wealth of Nations is the work of:
A. Marshall
B. J.S. Mill
C. Adam Smith
D. Lionel Robins
Answer:C
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