Chapter Exam

Chapter 2: Consumption Analysis — Online MCQ Test

Q: What is defined as the want-satisfying power of a commodity?

Answer: A. Utility — Utility is the technical term in economics used to describe the satisfaction derived from the consumption of a commodity.

Q: Which economist introduced the concept of 'Consumer Surplus'?

Answer: A. Alfred Marshall — Alfred Marshall is credited with formalizing the concept of consumer surplus in his work 'Principles of Economics'.

Q: Which of the following is NOT a characteristic of human wants?

Answer: D. Wants are independent — Wants are not independent; they are often complementary or competitive, making this statement incorrect.

Q: Consider two goods X and Y. A consumer is in equilibrium when _______.

Answer: A. MUx/Px = MUy/Py — Consumer equilibrium is achieved when the ratio of marginal utility to price for all goods is equalized.

Q: In the context of the Law of Equi-marginal Utility, what is the impact of a rise in the price of Good X on the equilibrium state?

Answer: A. MUx/Px becomes less than MUy/Py — A rise in Px reduces the ratio MUx/Px, causing it to fall below MUy/Py, prompting the consumer to shift spending to Good Y.

ECONOMICS · CLASS 11th · Tamil Nadu State Board

Practice Chapter 2: Consumption Analysis with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 11th ECONOMICS. This chapter covers: Focusing on consumer behavior this chapter details human wants utility concepts law of diminishing marginal utility and law of equi-marginal utility. Students study consumer surplu.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2: Consumption Analysis — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 11th ECONOMICS — Chapter 2: Consumption Analysis, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is defined as the want-satisfying power of a commodity?

A. Utility ✓
B. Price
C. Demand
D. Supply

Answer: A. Utility
Utility is the technical term in economics used to describe the satisfaction derived from the consumption of a commodity.

Which economist introduced the concept of 'Consumer Surplus'?

A. Alfred Marshall ✓
B. Adam Smith
C. Lionel Robbins
D. J.R. Hicks

Answer: A. Alfred Marshall
Alfred Marshall is credited with formalizing the concept of consumer surplus in his work 'Principles of Economics'.

Which of the following is NOT a characteristic of human wants?

A. Wants are unlimited
B. Wants are recurring
C. Wants are satiable
D. Wants are independent ✓

Answer: D. Wants are independent
Wants are not independent; they are often complementary or competitive, making this statement incorrect.

Consider two goods X and Y. A consumer is in equilibrium when _______.

A. MUx/Px = MUy/Py ✓
B. MUx = MUy
C. Px = Py
D. MUx * Px = MUy * Py

Answer: A. MUx/Px = MUy/Py
Consumer equilibrium is achieved when the ratio of marginal utility to price for all goods is equalized.

In the context of the Law of Equi-marginal Utility, what is the impact of a rise in the price of Good X on the equilibrium state?

A. MUx/Px becomes less than MUy/Py ✓
B. MUx/Px becomes greater than MUy/Py
C. The consumer increases consumption of X
D. The consumer stops consuming both goods

Answer: A. MUx/Px becomes less than MUy/Py
A rise in Px reduces the ratio MUx/Px, causing it to fall below MUy/Py, prompting the consumer to shift spending to Good Y.

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