Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Consider the following supply schedule.

S. No.	Price (₹ per unit)	Quantity Supplied (in units)
i.	25	50
ii.	35	70

This refers to:

1. Expansion in supply.
2. Contraction in supply.
3. Increase in supply.
4. Both (b) and (c).

Hint: Supply of a commodity expand only due to increase in price of the commodity and other factors remain constant. Quantity supplied increases from 50 units to 70 units of the commodity as a result of increase in its price from ₹ 25 to ₹ 35.

Arational consumer prefers A(10,6) over B(8,4). Which kind of preference is this?

1. Strictly preferred bundle.
2. Weakly preferred bundle.
3. Indifferent bundle.
4. None of the above.

Unforseen obsolescence of fixed capital assets during production is:

1. Consumption of fixed capital.
2. Capital loss.
3. Income loss.
4. None of the above.

An indifference curve slopes down towards right since more of one commodity and less of another result in

1. Same satisfaction.
2. Greater satisfaction.
3. Maximum satisfaction.
4. Decreasing expenditure.

vertical supply curve parallel to Y-axis implies that the elasticity of supply is:

1. Zero.
2. Infinity.
3. Equal to one.
4. Greater than zero but less than infinity.

Which is the best example of monopoly market?

1. Communication market.
2. Indian railway.
3. Stock exchange.
4. OPEC (Oil Producing Export Countries).

What happens to MU when TU is maximum and constant?

1. MU becomes zero.
2. MU becomes negative.
3. MU declines.
4. MU remains same.

______ is the real purchasing power of the consumer from which he can purchase certain quantitative bundle of two goods at a given price:

1. Consumer equilibrium.
2. Budget set.
3. Consumer's budget
4. Indifference curve.

If APS is 0.9, how much will be the APC?

1. 0.2
2. 0.5
3. 1
4. 0.1