Managerial Economics MCQs and Notes

R

Ranjeet • 34.60K Points
Instructor I

Q 121. The rate at which a consumer is able to substitute one good for another is determined by the …….

(A) consumers income

(B) indifference map

(C) ratio of the prices of the goods

(D) marginal rate of substitution.

A

Admin • 36.96K Points
Coach

Q 122. The typical indifference curve ……..

(A) shows that as a consumer has more of a good he/she is less willing to exchange it for one unit of another good.

(B) shows all combinations of goods that give a consumer in same level of utility

(C) shifts out if income increases

(D) both b and c

P

Priyanka Tomar • 35.28K Points
Coach

Q 123. A consumer with a given income will maximise their utility when:

(A) the marginal utility derived from each commodity is equal.

(B) the marginal utility derived from each product consumed is zero.

(C) the total utility derived from each commodity consumed is equal.

(D) the marginal utilities derived from each commodity consumed are proportional

A

Admin • 36.96K Points
Coach

Q 124. Which of the following statements is NOT TRUE of indifference curves?

(A) they could intersect

(B) they are convex to origin

(C) they are

(D) they exhibit higher levels of utility d. as you move from the origin