Chapter Exam

Chapter 2 ECONOMICS : Theory of Consumer's Behaviour — Online MCQ Test

Q: What is the satisfaction derived from the consumption of a single unit of a commodity known as?

Answer: B. Marginal Utility — Marginal utility is the additional satisfaction obtained by consuming one extra unit of a good.

Q: Who introduced the Cardinal Utility Analysis?

Answer: A. Alfred Marshall — Alfred Marshall is the main proponent of the cardinal utility approach, which assumes utility can be measured in numbers.

Q: In the Law of Equi-Marginal Utility, a consumer reaches equilibrium when:

Answer: B. MUx/Px = MUy/Py = MUm — The condition for consumer equilibrium under this law is that the marginal utility per rupee spent on each good must be equal.

Q: Given two bundles A and B, if a consumer is indifferent between them, then:

Answer: B. A and B provide the same level of utility — Indifference means the consumer assigns the same satisfaction level to both combinations of goods.

ECONOMICS · CLASS 11 INTER I YEAR · Andhra State Board

Practice Chapter 2 ECONOMICS : Theory of Consumer's Behaviour with a free chapter-wise online MCQ test for Andhra State Board CLASS 11 INTER I YEAR ECONOMICS. This chapter covers: This chapter details cardinal and ordinal utility analyses law of diminishing marginal utility law of equi-marginal utility and consumer equilibrium using indifference curves.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2 ECONOMICS : Theory of Consumer's Behaviour — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR ECONOMICS — Chapter 2 ECONOMICS : Theory of Consumer's Behaviour, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the satisfaction derived from the consumption of a single unit of a commodity known as?

A. Total Utility
B. Marginal Utility ✓
C. Average Utility
D. Equi-marginal Utility

Answer: B. Marginal Utility
Marginal utility is the additional satisfaction obtained by consuming one extra unit of a good.

Who introduced the Cardinal Utility Analysis?

A. Alfred Marshall ✓
B. J.R. Hicks
C. Adam Smith
D. Paul Samuelson

Answer: A. Alfred Marshall
Alfred Marshall is the main proponent of the cardinal utility approach, which assumes utility can be measured in numbers.

In the Law of Equi-Marginal Utility, a consumer reaches equilibrium when:

A. MUx = MUy
B. MUx/Px = MUy/Py = MUm ✓
C. MUx + MUy = Income
D. MUx > MUy

Answer: B. MUx/Px = MUy/Py = MUm
The condition for consumer equilibrium under this law is that the marginal utility per rupee spent on each good must be equal.

Why is an Indifference Curve convex to the origin?

A. Due to constant Marginal Rate of Substitution
B. Due to increasing Marginal Rate of Substitution
C. Due to diminishing Marginal Rate of Substitution ✓
D. Because prices are constant

Answer: C. Due to diminishing Marginal Rate of Substitution
The convex shape represents the psychological principle that as we possess more of one good, we are willing to give up less of the other.

Given two bundles A and B, if a consumer is indifferent between them, then:

A. A has more of both goods than B
B. A and B provide the same level of utility ✓
C. B is preferred over A
D. The consumer cannot choose between them due to price

Answer: B. A and B provide the same level of utility
Indifference means the consumer assigns the same satisfaction level to both combinations of goods.

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