Professional Documents
Culture Documents
Chapter 1
The term microeconomics and macroeconomics were first used by ____________
Adam smith
Robbins
Ragnar Frisch
Marshall
Microeconomics is the study of ____________
whole economy
general price level
national output
individual economic unit
Microeconomics is concerned with the study of
aggregate demand
aggregate supply
individual demand
national income
___________ is the important assumption of microeconomics.
Unemployment
Partial unemployment
Full employment
Partial employment
Microeconomics is also called _____________
Income theory
Price theory
Growth Theory
Employment Theory
Microeconomic analysis adopts _____ method.
lumping
aggregative
slicing
inclusive
Microeconomics is a _________ equilibrium approach.
partial
general
total
multi variable
Microeconomic approach was enthroned by _______________
Robinson
Marshall
Frisch
Smith
Microeconomics assumes______________
monopoly
oligopoly
perfect competition
monopolistic competition
The study of microeconomics is ____________ in nature.
comprehensive
aggregative
summative
individualistic
The term microeconomics derived from the Greek Word _____________
Microeconomics is concerned with the study of
______________/__________________
Microeconomics is a _______________ equilibrium analysis.
Microeconomics adopts ______________approach
The credit for the development of micro economics approach goes to
____________
________________ implies that every individual under consideration behaves in
an economically rational manner.
Microeconomics deals with Factor Pricing
Chapter 2
1. Marginal utility diminishes, as consumption of a
commodity _________________
increases
decreases
remains constant
becomes zero
2. ______________ refers to want satisfying power of a
commodity.
usefulness
utility
satisfaction
happiness
3. ______________ utility is the utility derived from the last
unit of a commodity consumed.
Average
Total
Marginal
Zero
4. Marshall assumes __________________ measurement of
utility.
statistical
cardinal
multiple
correct
5. Blood donation has _______________ utility.
place
time
knowledge
form
6. A rational consumer wants ______________ satisfaction.
adequate
maximum
flexible
different
7. Utility depends on the ______________ of want.
intensity
quality
novelty
uniformity
8. ________________ utility is the sum of all the marginal
utilities from the consumption of a commodity.
Total
Marginal
Form
Time
9. Warehouses create ____________ utility
place
service
form
time
10. When MU is _______________, TU decreases.
positive
negative
zero
high
11. _______is the power of commodity to fulfil human wants
(utility, usefulness, productivity, unproducivity)
12. the utility derived from all units of the given commodity is
called _______(average utility, marginal utility,place utility,
total utility)
1. A rational Consumer wants ________________ Satisfaction.
2. Utility depends on the __________________ of the want.
3. Marshall assumes ____________________ measurement or utility.
4. _______________Utility is the sum of all the marginal utilities from the consumption of a
commodity.
5. The utility from an extra unit of consumption is called ______________ utility.
6. When Total utility falls, the marginal utility becomes___________________.
7. The Marginal utility tends to diminish with the ___________________ in the units of
consumption of a commodity.
8. When Marginal Utility is zero, the total utility will be the ________________.
9. The demand for labour is ____________demand.
10. The demand for electricity for domestic purpose is ____________demand.
11.
Chapter 3- very imp
Demand analysis
1. The demand for ___________ is highly inelastic.
perfumes
gold
medicines
diamond
2. The demand for salt is __________
elastic
inelastic
zero
maximum
3. The elasticity of demand of pins is ___________
elastic
inelastic
zero
maximum
4. A desire backed by ability to pay and willingness to
pay for a commodity is called.
supply
purchasing power
perfect desire
demand
5. When the price of petrol goes up, demand of car will
_____________
rise
fall
becomes zero
remain unchanged
6. Individual demand is an aggregate of purchasing by
____________ buyer(s).
all
some
one
two
7. Market demand is an aggregate of purchasing by
___________ buyer(s).
one
two
all
some
8. Implicit demand is also known as ______________
derived
direct
composite
joint
9. Indirect demand is also known as ___________
demand.
direct
composite
joint
derived.
10. The demand for consumer goods is _____________
demand
derived
implicit
direct
indirect
11. The law of demand is applicable to
__________________ goods.
Giffen
prestige
inferior
normal
12. When less is purchased at the constant prices, it is
called _____________ in demand.
decrease
increase
expansion
contraction
13. When price of commodity rises, the demand for it
______________
falls
remains constant
becomes negative
becomes positive
14. Income elasticity of demand for inferior goods is
______________
positive
negative
zero
greater than one
15. The slope of demand curve is __________ in the
case of inelastic demand.
flatter
steeper
horizontal
vertical
16. Cross elasticity of demand is applicable to
________________ goods.
prestige
substitute
inferior
superior
17. Perfectly elastic demand curve is _____________
horizontal to OX axis
Horizontal to OY axis
Passes through the origin.
Steeper
18. If a commodity has many substitutes, then its
demand becomes __________
more elastic
less elastic
unitary elastic
perfectly elastic.
19. As price falls, demand ___________
increases
decreases
contracts
expands.
20. The Law of demand is based on the law of
______________
supply
Diminishing Marginal Utility
Newton's Law of gravitational force
Einstein's E = mc
2
.
21. In the case of Giffen goods the income elasticity of
demand is _____________
positive
negative
zero
infinite
22. In case of normal goods the income elasticity of
demand is ____________
positive
negative
zero
infinite
23.Individual demand is the purchasing by _______
buyers. (Some, All,One, Two)
24. ________ demand curve is parallel to Y - axis.
(Inelastic, Elastic,Perfectly Inelastic, Perfectly Elastic)
25. The demand for luxury goods is ________
(elastic, inelastic, unitary, perfectly elastic)
26. The marginal utility of money can never be
________ (zero, falling, constant, average)
27. The law of demand states________realtionship
between demand and price.
(direct,total,inverse,positive)
28. the law of equi-marginal utility is based on the law of
________ (demand, Diminishing Marginal Utility,
supply, consumption)
29. The demand for habitual commodity is _______
(more elastic demand, less elastic demand, zero elastic
demand, unitary elastic demand)
30. If the price of the inferior goods falls, the demand for
them ______
(increase/ decrease/remain constant/become zero)
31. Demand elasticity can be measured from demand curve by
______method( Total outlay/ percentage/ geometric/
mathematical)
12. The law of demand is based on the concept of ________________.
13. The Law of DMU is not applicable for ________________.
14. Producing Sugar from sugarcane is an example of _________________.
15. The law of DMU is useful for ________________.
16. A desire backed by ability to buy and willingness to pay for a commodity is called_________.
17. The law of demand is based on the Law of _______________.
18. Other thing remaining constant, when the price of a product increases, the demand for it_____.
19. The relationship between the price and demand is ______________.
20. The normal demand curve slopes ________________.
21. Electricity has Composite demand.
22. Salt has _________________ demand.
23. The demand for necessities is _______________ demand.
24. ______________ Demand curve is parallel to Y-axis.
25. Demand for Pin is ________________.
The demand for Luxuries is _______________.