Pick the odd one out

(a)

Luxuries

(b)

Comforts

(c)

Necessaries

(d)

Agricultural goods

Choice is always constrained or limited by the _______ of our resources.

(a)

Scarcity

(b)

Supply

(c)

Demand

(d)

Abundance

The chief exponent of the cardinal utility approach was

(a)

J.R. Hicks

(b)

R.G.D. Allen

(c)

Marshall

(d)

Stigler

Marginal utility is measured by using the formula of

(a)

TU_n - TU_n-1

(b)

TU_n - TU_n+1

(c)

TU_n + TU_n+1

(d)

TU_n - TU_n+1

When marginal utility reaches zero, the total utility will be

(a)

Minimum

(b)

Maximum

(c)

Zero

(d)

Negative

Gossen's first law is known as

(a)

Law of Equi-Marginal Utility

(b)

Law of Diminishing Marginal Utility

(c)

Law of Demand

(d)

Law of Diminishing returns

The basis for the law of demand is related to

(a)

Law of Diminishing Marginal Utility

(b)

Law of Supply

(c)

Law of Equi-Marginal Utility

(d)

Gossen's Law

The concept of consumer's surplus is associated with

(a)

Adam Smith

(b)

Marshall

(c)

Robbins

(d)

Ricardo

Given potential price is Rs. 250 and the actual price is Rs. 200. Find the consumer surplus.

(a)

375

(b)

175

(c)

200

(d)

50

Indifference curve approach is based on

(a)

Ordinal approach

(b)

Cardinal approach

(c)

Subjective approach

(d)

Psychological approach

The concept of elasticity of demand was introduced by

(a)

Ferguson

(b)

Keynes

(c)

Adam Smith

(d)

Marshall

Increase in demand is caused by

(a)

Increase in tax

(b)

Higher subsidy

(c)

Increase in interest rate

(d)

decline in population

The movement on or along the given demand curve is known as ______

(a)

Extension and contraction of demand

(b)

shifts in the demand

(c)

increase and decrease in demand

(d)

all the above

Utility analysis was developed by _____

(a)

Alfred Marshall and Adam Smith

(b)

Alfred Marshall and Prof. J.R. Hicks

(c)

Alfred Marshall and A.C. Pigou

(d)

Alfred Marshall and J.K. Easthan

According to the law of diminishing marginal utility, the utility from the consumption of each additional unit starts _____

(a)

increasing

(b)

diminishing

(c)

multiplying

(d)

none of these

Equi - Marginal Utility means equal marginal utilities derived from the consumption of more than_____

(a)

four goods

(b)

three goods

(c)

two goods

(d)

one good

The concept of consumers surplus was introduced by ____

(a)

Alfred Marshall

(b)

J.R. Hicks

(c)

A.C. Pigon

(d)

J.K. Easthan

The Indifference curve analysis was presented by _____

(a)

Alfred Marshall

(b)

J.R. Hicks

(c)

A.C. Pigon

(d)

J.K. Easthan

The foundation for various other economic law is ____

(a)

Law of diminishing marginal utility

(b)

Law of equi-marginal utility

(c)

Consumer surplus

(d)

None of these

_________ is the other name given for Marshallian utility analysis.

(a)

Total utility

(b)

Cardinal utility analysis

(c)

Marginal utility

(d)

All of these

The __ principle is quite useful in explaining the "water diamond paradox"

(a)

Equi - marginal

(b)

Marginal utility

(c)

Utility

(d)

Total utility

Supply curve is ____

(a)

an upward sloping curve

(b)

a downward sloping curve

(c)

a horizontal straight line

(d)

a vertical line

_____ of the following constitute 'demand' in economics

(a)

A desire to buy

(b)

A decision to buy

(c)

The purchasing power

(d)

All the above

Giffen's goods are classified in to __ and __ goods.

(a)

Superior

(b)

Inferior

(c)

Both 'a' and 'b'

(d)

None

The term 'ceteris paribus' means __

(a)

Speculation

(b)

Other things remaining constant

(c)

Veblen effect

(d)

Antoine Augustin Cournot