Utility and Consumer Behavior 01 Mcqs Preparation Online

1. Law of substitution is another name for law of:

A. Satisfaction

B. Law of Demand

C. Law of Equi-MU

D. Law of Diminishing MU

2. Demand curve slopes downward because of the law of:

A. Consumer equilibrium

B. Utility minimization

C. Diminishing marginal utility

D. Utility maximization

3. Utility and usefulness are:

A. Different

B. Equal

C. Unrelated

D. Similar

4. When MU = 0, TU is:

A. Laws of return

B. Minimum

C. Maximum

D. None of the above

5. A consumer's spending is restricted because of:

A. Demand curve

B. Utility maximization

C. Marginal utility

D. Budget constraint

6. In economics, one or more persons sharing common consumer budget is called:

A. Organisation

B. Household

C. Business firm

D. Gathering

7. Human wants are:

A. Countable

B. Few

C. Innumerable

D. One thousand

8. When marginal is negative, it must be true that:

A. The total is negative

B. The average is decreasing

C. The total is decreasing

D. The average is negative

9. Law of Equi-marginal Utility is a law of:

A. Production of wealth

B. Distribution of wealth

C. Exchange of wealth

D. Consumption of wealth

10. A consumer is in equilibrium when marginal utilities are:

A. Equal

B. Minimum

C. Highest

D. Increasing

11. Utility is most closely related to the term:

A. Satisfaction

B. Useful

C. Necessary

D. Useless

12. Diminishing marginal utility is the basis of:

A. None of the above

B. Law of returns

C. Law of supply

D. Law of demand

13. Rotten eggs are:

A. Economic good

B. Service

C. Wealth

D. Free good

14. When MU is positive, TU:

A. Increases

B. Is highest

C. Remains constant

D. Decreases

15. The term 'marginal' in economics means:

A. Unimportant

B. The minimum unit

C. Just barely passing

D. Additional

Utility and Consumer Behavior 01 Mcqs Preparation Online

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