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#### Consumption Analysis - Important Question Paper

11th Standard

Reg.No. :
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Economics

Time : 01:00:00 Hrs
Total Marks : 50

Part A

10 x 1 = 10
1. When marginal utility reaches zero, the total utility will be

(a)

Minimum

(b)

Maximum

(c)

Zero

(d)

Negative

2. 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

3. The concept of elasticity of demand was intorduced by

(a)

Ferguson

(b)

Keynes

(c)

(d)

Marshall

4. Increase in demand is caused by

(a)

Increase in tax

(b)

Higher subsidy

(c)

Increase in interest rate

(d)

decline in population

5. The Indifference curve analysis was presented by _____

(a)

Alfred Marshall

(b)

J.R. Hicks

(c)

A.C. Pigon

(d)

J.K. Easthan

6. 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

7. __ is the other name given for Marshallian utility analysis.

(a)

Total utility

(b)

Cardinal utility analysis

(c)

Marginal utility

(d)

All of these

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

(a)

Equi - marginal

(b)

Marginal utility

(c)

Utility

(d)

Total utility

9. Elasticity of demand in equal to one Indicates

(a)

Unitary Elastic Demand

(b)

Perfectly Elastic Demand

(c)

Perfectly Inelastic Demand

(d)

Relatively Elastic Demand

10. The locus of the points which gives same level of satisfaction is associated with

(a)

Indifference Curves

(b)

Cardinal Analysis

(c)

Law of Demand

(d)

Law of Supply

11. Part B

6 x 2 = 12
12. Define utility.

13. Mention the classification of wants.

14. Name the basic approaches to consumer behaviour.

15. State the meaning of indifference curves

16. Write the formula of consumers surplus?

17. What are Giffen goods? Why?

18. Part C

6 x 3 = 18
19. Describe the feature of human wants

20. Mention the relationship between marginal utility and total utility.

21. Explain the concept of consumer's equilibrium with a diagram.

22. Explain the theory of "Consumer's surplus"

23. What are the assumptions of consumer's surplus?

24. Explain the relationship between price elasticity of demand and slope of a linear demand curve.

25. Part D

2 x 5 = 10
26. Explain the indifference curve approach?

27. Enumerate the determinantS of Demand?