Consumer Equilibrium and Demand

1. Want satisfying capacity of goods and services is called_________

a) Production
b) Capacity
c) Utility
d) Demand
Answer
Answer: C) utility

2. ___________ is the total satisfaction a consumer gets from consumption of all units of a commodity
a) Utility
b) Total utility
c) Marginal utility
d) All of the above
Answer
Answer: B) total utility

3. ____________ is the net increase in total utility by consuming an additional unit of a commodity.
a) Utility
b) Total utility
c) Marginal utility
d) All of the above
Answer
Answer: C) marginal utility

4. ___________ is a quantitative combination of two goods that can be purchased by a consumer from his given
market prices.
a) Information
b) Data
c) Figures
d) Consumers bundle
Answer
Answer: D) consumers bundle

5. ________________ is a quantitative combination of those bundles which a consumer can purchase from his
given income at given prices.
a) Budget set
b) Budget line
c) Budget bundle
d) All of the above
Answer
Answer: A) budget set
6. ____________ is a line showing different combinations of two goods which a consumer can buy by spending
his whole income at a given price of the goods.
a) Budget bundle
b) Budget set
c) Budget line
d) All of the above
Answer
Answer: C) budget set

7. ___________ is the rate at which a consumer is willing to substitute good Y for good X.
a) Opportunity cost
b) Opportunity gain
c) Marginal rate of substitute
d) Marginal cost
Answer
Answer: C) marginal rate of substitute

8. Formula for MRS is ____________

a) Loss of good Y / gain of good X
b) Loss of good X / gain of good Y
c) Gain of good y / loss of good X
d) Gain of good X / loss of good Y
Answer
Answer: A) loss of good Y / gain of good X

9. MRS Formula is _________________

a) -∆x
b) -∆y
c) (-∆Y / ∆X)
d) Y/X
Answer
Answer: C) (-∆Y / ∆ X)

10. MRS abbreviated as _________

a) Marginal Rate of Substitution
b) Marginal Rate of Subtracted
c) Margin Rate of Solvency
d) None
Answer
Answer: A) marginal rate of substitution

11. Law of diminishing marginal utility describes that when consumer consumes _______of a unit the utility
derived from that unit _________
a) more and more
b) less and less
c) declines
d) Both A and C
Answer
Answer: D) both a and b

12. ___________ is the curve showing different combinations of two goods, each combination offering the same
level of satisfaction.
a) Indifference
b) Indifference map
c) Indifference curve
d) None
Answer
Answer: C) indifference curve

13. ______________ is the indifference curves placed together in a diagram.

a) Indifference map
b) Indifference curve
c) Maps
d) All of the above
Answer
Answer: A) indifference map

14. Following are the characteristics of the indifference curve except

a) Negatively sloped
b) Positively sloped
c) Convex to the point
d) Never touch each other
Answer
Answer: B) positively sloped

15. _____________ is a situation where a consumer is spending his income in such a way that he is getting
maximum satisfaction and has no tendency to change.
a) Equilibrium
b) Consumers satisfaction
c) Consumers equilibrium
d) None
Answer
Answer: C) consumers equilibrium

Consumer Equilibrium and Demand Class 11 MCQ Economics

16. Consumer’s preferences are ____________ when consumer always choose a bundle having more of one good
and less of other.
a) Consumer budget
b) Budget preference
c) Monotonic preference
d) Margin method
Answer
Answer: C) monotonic preference

17. The approach to study What are the conditions for consumer’s equilibrium is?
a) Cardinal approach
b) Ordinal approach
c) Both A and B
d) A or B
Answer
Answer: C) both a and b

18. Cardinal approach is also called________

a) Utility approach
b) Indifference curve approach
c) Ordinal approach
d) All
Answer
Answer: A) utility approach

19. Ordinal approach is also called___________

a) Utility approach
b) Indifference curve approach
c) Cardinal approach
d) None
Answer
Answer: B) indifference curve approach

20. Budget Line Formula M = _________________

a) M=(Px * x) + (Py * y)
b) M=(Px * y) + (Py * x)
c) M=(Pxy) * (Pyx)
d) M=(Px-x) – (Py-y)
Answer
Answer: A) M=(Px * x) + (Py * y)

21. Budget Set formula

a) (Px * x) + (Py * y) ≤ M
b) (Px * y) + (Py * x) ≤ M
c) (Px * x) – (Py * y) ≤ M
d) (Px * x) + (Py * y) ≥ M
Answer
Answer: A) (Px * x) + (Py * y) ≤ M

22. _____________ is the quantity which a consumer is able and is willing to buy at given price and in a given
period of time.
a) Demand
b)Supply
c) Quantity demanded
d) Quantity supplied
Answer
Answer: C) quantity demanded

23. ____________ is the total quantity purchased by all the consumers in the market at given and in given period
of time.
a) Quantity demanded
b) Demand
c) Market
d)Market demand
Answer
Answer: D)market demand

24. _____________ shows functional relation ship between quantity demanded and factors affecting demand.
a) Cost function
b) Factors function
c) Demand function
d) Supply function
Answer
Answer: C) demand function

25. __________ is an economic agent, who consumes final goods and services to fulfil his basic needs.
a) Consumer Bundle
b) Consumer
c) Consumer Equilibrium
d) None
Answer
Answer: B) consumer

26. __________is a table, which shows the quantity demanded of a commodity at various prices.
a) Demand function
b) Demand market
c) Demand schedule
d) Quantity demand
Answer
Answer: C) demand schedule

27. Law of demand define _________

a) Price increases quantity demanded decreases as price decreases quantity demanded increases, keeping other
factors constant.
b) Price decreases quantity decreases as price increases quantity increases.
c) Price increases quantity decreases as price increases quantity increases.
d) None
Answer
Answer: (A) price increases quantity demanded decreases as price decreases quantity demanded increases, keeping
other factors constant

28. Indifference curve characteristics are ________________

a) Negatively sloped
b) Convex to the point of origin
c) Never Intersect each other
d) All of the above
Answer
Answer: D) all of the above

29. A consumer is able and willing to buy at a given price and in a given period of time is known as
________________
a) Market demand
b) Quantity demand
c) Demand schedule
d) Demand function
Answer
Answer: B) quantity demanded

30. Downward movement along a demand curve is called _______________________ demand.

a) Expansion / Extension
b) Contraction / Compression
c)Both A and B
d) None
Answer
Answer: A) expansion / extension

Consumer Equilibrium and Demand Class 11 MCQ Economics

31. Change in demand, is also called as __________________
a)Quantity
b) Quality
c) Shift in demand
d) None
Answer
Answer: C) shift in demand

32. Determinants of demand are ____________

a) Change In price
b) Income of the consumer
c) Price of good
d) All of the above
Answer
Answer: D)all the above

33. Demand function shows the functional relationship between the demand of ___________ and ___________
affecting demand.
a) Goods, services
b) Services, supplies
c) Factors, services
d) Goods, factors
Answer
Answer: D) goods, factors

34. A consumer has monotonic preferences, find the most preferred bundle by him?
a) 4 units of X good and 6 units of Y good
b) 6 units of X good and 4 units of Y good
c) 6 units of X good and 6 units of Y good
d) 4 units of X good and 5 units of Y good
Answer
Answer: C)6 units of X goods and 6 units of Y goods

35. When demand changes due to changes in determinants other than price demand it is called
a) Demand change
b) Change in demand
c) Change in quantity demanded
d) All
Answer
Answer: B)Change in demand

36. When demand changes due to the price of its own commodity then it is termed as
a) Demand change
b)Change in demand
c) Change in quantity demanded
d) None
Answer
Answer: C)change in quantity demanded
37. ___________ is a graphical representation of demand schedule.
a) Curve
b) Maps
c) Demand curve
d) None
Answer
Answer: C) demand curve

38. Relation between price and quantity demanded of a commodity is___________

a) Direct
b) Inverse
c) Converse
d) Positive
Answer
Answer: B) Inverse

39. Slopes downward from left to right; convex towards origin; higher indifferences curves represents higher
utility are properties of ______________
a) Determinants of demand
b) Change in demand
c) Market demand
d) Indifference curves
Answer
Answer: D) Indifference curves

40. Slope of demand curve is ___________

a) P/Q
b) ∆Q
c) ∆P
d) ∆P/∆Q
Answer
Answer: D) ∆P /∆Q

41. ____________ is the measurement of change in quantity demanded in response to change in price of a
commodity
a) Change in demand
b)Price elasticity of demand
c) Elasticity of demand
d) Quantity demanded
Answer
Answer: B) price elasticity of demand
42. Percentage change in quantity demand?
a) ∆Q/Q
b) ∆Q
c) (∆Q/Q) * 100
d) Q*100
Answer
Answer: C)(∆Q/Q)*100

43. Percentage change in Price?

a) ∆P
b) (∆P/P)*100
c) P+∆
d) ∆-P
Answer
Answer: B)(∆P / P)* 100

44. Percentage Method formula : __________

a) (∆Q / ∆P) * (P/Q)
b) (∆Q / ∆P) % (P/Q)
c) (∆Q + ∆P) * (P/Q)
d) (∆Q – ∆P) * (P/Q)
Answer
Answer: A)(∆Q /∆ P)* P/Q

45. Which of the following are Effecting Price Elasticity of demand?

a) Time period
b) Income of the consumer
c) Both A and B
d) Percentage
Answer
Answer: C) both a and b