F.Y B.COM
SEMESTER - 2
MID SEMESTER EXAMINATION
MICRO ECONOMIC
(ME)
MCQS - 2018
(A) Marginal Utility Analysis
(B) Indifference curve
(C) Alfred Marshall
(D) Equi-Marginal Utility
(2) Identify the odd one
(A) Transitivity-assumption
(B) Cardinal Utility
(C) Non-satiefy assumption
D) Weak ordering of utility
(3) Identify the odd one out
(A) Law of equi-marginal utility
(B) Marginal utility of money
(C) ratio of marginal utilities of goods to their respective price
(D) Diminishing marginal rate of technical substitution
(4) When a firm moves down on a given isoquant, which of the following happens?
(A) increase in the use of factor of production shown on the x axis & decrease in the use of factor of production shown on the y axis.
(B) fall the use of both the factors of production
(C) increase in the use of both the factors of production
(D) increases in the use of factor production shown the y axis & decrease in the use of factor of production shown on the x axis
(5) Identify the odd one
(A) Indirect
(B) Direct
(C) Consumption
(D) Law of Variable Proportions
(6) Under the Law of Variable Proportions, which stage is considered to be the rational stage of production?
(A) Stage - I
(B) Stage - II
(C) Stage - III
(D) Stage - IV
(7) Consumer Surplus is,
(A) The total utility derived from consumption of a good
(B) The total utility derived from consumption of a good less the price of that good
(C) The total utility derived from consumption of a good less the total expenditure on that good
(D) Marginal utility derived from consumption of a good less total expenditure on that good
(8) The capacity of a consumer to buy goods can be expressed by the
(A) Price line
(B) Prices of the goods
(C) Income of consumer
(D) indifference curve
(9) Which of these statements is correct
(A) Lower the indifference curve higher the level of satisfaction
(B) Higher the indifference curve lower the price
(C) Indifference curve represents the income of the consumer
(D) Higher the indifference curve higher the level of satisfaction
(10) Which of these is not applicable to the laws of returns to scale?
(A) Short run
(B) Relationship between relative increase in inputs & relative increase in output
(C) Long run
(D) Variable factors of production
(11) Which of these has reference to Transitivity assumption?
(A) The consumer will always prefer more quantity of goods to less
(B) The consumer always aims at maximization of satisfaction
(C) If a consumer prefers A to B and B to C, then she prefers A to C
(D) A and B
(12) An Indifference curve is
(A) Vertical straight line
(B) Horizontal straight line
(C) Downward sloping from left to right
(D) Upwards rising from left to right
(13) Under decreasing returns to scale, to double the level the output, the factor inputs need to be
(A) More than doubled
(B) Less than doubled
(C) Kept constan
(D) Increased by 50 percent
(14) The slope of an Iso-quant measures...
(A) Marginal rate of substitution between two consumers
(B) Marginal rate of substitution between two factors of production
(C) Marginal rate of substitution between two commodities
(D) Marginal rate of substitution between two producers
(15) The Law of Equi-Marginal Utility equates
(A) Cost of each good
(B) Ratio of Marginal utility to price for each good consumed
(C) Prices of all goods consumed
(D) Marginal Utilities of all goods consumed
(16) The position of the budget line of a consumer depends on...
(A) The income of the consumer
(B) Price of the goods
(C) The units of goods consumed by her
(D) Both A and B
(17) Identify the odd one out
(A) Perfect substitutes
(B) Convex indifference curve
(C) Downward sloping linear (straight line) indifference curve
(D) Constant marginal rate of substitution
(18) Identify the odd one out
(A) Hicks and Allen
(B) Cardinal utility
(C) Indifference curve
(D) Ordinal utility
(19) Which of these implies Cardinal Utility?
(A) One unit of Mango gives Rs. 50 worth of satisfaction
(B) Mango gives more satisfaction to Vinita than apple
(C) Both A and B
(D) Neither A nor B
(20) An indifference map is
(A) A collection of indifference curves showing higher & higher in- come level of a consumer
(B) A locus of tangency points between indifference curves & price lines
(C) A collection of consumer's cardinal utilities
(D) A collection of indifference curves showing the scale of preference of consumer
(21) The Law of Diminishing Marginal Utility applies only when
(A) Consumption is continuous
(B) There is a gap in consumption
(C) The good has a price but not if it is a free good
(D) Each successive unit consumed is better than the previous
(22) Which of the following is / are the cause of economies of scale?
(A) Better supervision & control over the variable factors of production
(B) Better utilization of fixed factor
(C) only A
(D) Both A and B
(23) Which of these is true for indifference curves ...
(A) They cut each other
(B) They slope downwards from right to left
(C) They slope downwards from left to right
(D) They are tangent to each other
(24) When two goods are perfect complements of each other, the rate of substitution between them is
(A) High
(B) Very high
(C) Zero
(D) Infinite
(25) Identify the end point of the second stage of production under the law of variable proportions.
(A) Peak point of average product curve
(B) Zero average product
(C) Peak point of marginal product curve
(D) Zero marginal product
(26) Which of these implies Ordinal utility?
(A) Mango gives more satisfaction to Vinit than apple
(B) One unit of Mango gives Rs. 50 worth of satisfaction while one unit of Apple gives Rs.40 worth of satisfaction to Vinit
(C) Both A and B
(D) Neither A nor B
(27) Diminishing marginal rate of substitution implies that
(A) One unit of x can substitute more & more units of y, successively
(B) One unit of x can substitute for zero units of y, successively
(C) One unit of x can substitute less & less units of y, successively
(D) One unit of x can substitute for same units of y, successively
(28) Which of these is incorrect?
(A) When MU is negative, TU is negative
(B) When MU is negative, TU declines
(C) When MU is positive, TU increases
(D) When MU is zero, TU remains constant
(29) Identify the odd one
(A) Laws of returns to scale
(B) long run
(C) Short run
(D) All factors of production are variable
(30) Which of the following is / are NOT applicable to the law proportions
(A) Factors of production are perfect complements of each other
(B) Factor all factors of production are used in rigid proportion
(C) All factors of production are variable
(D) All of the above
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