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Economics [ 3 Marks Questions ]

Consumption Analysis · Tamil Nadu Board STD 11 (Tamil - English Medium). 5 questions.

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[ 3 Marks Questions ]

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5 questions · timed · auto-graded

Question 13 Marks
What is a scale of preference?
Answer
  1. A rational consumer usually prefers the combination of goods which gives him a maximum level of satisfaction.
  2. Thus the consumer can arrange goods and their combination in order of their satisfaction.
  3. Such an arrangement of a combination of goods in the order of level of satisfaction is called the “Scale of preference”.
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Question 23 Marks
What are the determinants of demand?
Answer
  1. Changes in tastes and fashions
  2. Change in weather
  3. Taxation and subsidy
  4. Change in expectations
  5. Changes in savings
  6. State of trade activity
  7. Advertisement
  8. Change in income
  9. Change in population.
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Question 33 Marks
Write the importance of the law of diminishing marginal utility?
Answer
  1. This law of DMU is one of the fundamental laws of consumption. It has applications in several fields of study.
  2. The law of DMU is the basis for other consumption laws such as the law of Demand, Elasticity of Demand, Consumer Surplus, and the Law of Substitution, etc.
  3. The law emphasizes the equitable distribution of wealth. The MU of money to the more -moneyed is low. Hence redistribution of income from rich to poor is justified.
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Question 43 Marks
What is an indifference map?
Answer
An indifference map is a family or collection or set of indifference curves corresponding to different levels of satisfaction. In the diagram, the indifference curves $I C_1, I C_2$, and $I C_3$ represent the indifference map, upper $I C$ representing a higher level of satisfaction compared to lower $I C$.
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Question 53 Marks
What is a scale of preference?
Answer
  1. A rational consumer usually prefers the combination of goods which gives him a maximum level of satisfaction.
  2. Thus the consumer can arrange goods and their combination in order of their satisfaction.
  3. Such an arrangement of a combination of goods in the order of level of satisfaction is called the “Scale of preference”.
View full question & answer→
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[ 3 Marks Questions ] - Economics STD 11 Questions - Vidyadip