Marginal utility means
(a) change in total utility due to one unit change in consumption (b) change in total utility due to no change in consumption © change in utility due to change in price
(d) change in utility due to change in income

1 Answer

Answer :

(a) change in total utility due to one unit change in consumption

Related questions

Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward

Last Answer : (a) the price of one good changes

Description : According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.

Last Answer : (b) level of income.

Description : Total utility is maximum, when (a) marginal utility is maximum (b) marginal utility is zero © marginal utility increases (d) average utility is maximum

Last Answer : (b) marginal utility is zero

Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve

Last Answer : (b) Law of demand

Description : The quantity demanded depends on (a) its price (b) income © price of other goods (d) all of the above

Last Answer : (d) all of the above

Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Last Answer : (b) price of that commodity

Description : .Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.

Last Answer : (b) Level of income and rate of interest

Description : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.

Last Answer : (b) Level of income.

Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Last Answer : (a) Increase in consumption due to one unit increase in income.

Description : The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Last Answer : © Change in consumption/ Change in income

Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease

Last Answer : (b)will necessarily increase

Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.

Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world

Description : The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.

Last Answer : (d) Export prices compared to import prices.

Description : Which among the following method is used to calculate poverty in India? (a) Investment Method. (b) Capital Method. © Savings Method. (d) Income Method.

Last Answer : (d) Income Method.

Description : Per capita income is calculated by dividing total national income by (a) Total population (b) Total savings © Total depreciation (d) Total investment.

Last Answer : (a) Total population

Description : In India agricultural income is calculated by (a) Income method (b) Output method © Expenditure method (d) None of them.

Last Answer : (b) Output method

Description : Which is not added in the calculation of national income in India? (a) The value of goods and services. (b) The sold value of old fridge. © Services rendered by the housewives (d) Both (b) and (c)

Last Answer : (d) Both (b) and (c)

Description : Which sector contributes largest to India’s national income? (a) Agricultural sector (b) Manufacturing sector © Service sector (d) Small scale industry.

Last Answer : © Service sector

Description : How much the primary sector contributes to India’s national income? (a) 20 percent (b) 53 percent © 14 percent (d) 24 percent.

Last Answer : © 14 percent

Description : Which state in India now has the highest per capita income? (a) Goa (b) Delhi © Punjab (d) Kerala.

Last Answer : (a) Goa

Description : What base year is used to calculate per capita income in India? (a) 2004-05 (b) 2011-12 © 2001-02 (d) 2014-15

Last Answer : (b) 2011-12

Description : Savings represent (a) An injection to the circular flow of income (b) A withdrawal into the circular flow © Both an injection and a withdrawal (d) None of the above.

Last Answer : (b) A withdrawal into the circular flow

Description : If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier

Last Answer : (d) Multiplier

Description : Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal ... consume decreases as income increases (d) The average propensity to consume increases as income increases

Last Answer : d) The average propensity to consume increases as income increases

Description : An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Last Answer : (a) Lower interest rates

Description : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.

Last Answer : (a) Higher aggregate demand.

Description : If the Keynesian consumption function is, C=10+.8Y, if income is Rs 1000/- what is total consumption. (a) Rs .8/- (b) Rs 800/- © Rs 810/- (d) Rs .81/

Last Answer : © Rs 810/-

Description : n the simple Keynesian model investment is (a) Fixed. (b) A function of level of income. © Either fixed or a function of level of income. (d) None of the above.

Last Answer : © Either fixed or a function of level of income.

Description : Assume that the consumption function is of the form, C= 50+.8Y. If income is Rs 1000/- then consumption is,- (a) Rs 50/- 9b) Rs 1050/- © Rs 50/- (d) Rs 850/-

Last Answer : (d) Rs 850/-

Description : Engel’s curve illustrates the relationship between (a) Consumption and Utility (b) Production and Productivity (c) Income and Consumption (d) Income and Production

Last Answer : (c) Income and Consumption

Description : Price effect in indifference curve analysis arises A.When the consumer becomes either better off or worse off because price change is not compensated by income change. B.When the consumer is betler off due to a change in income and price C.When income and price change D.None of the above

Last Answer : A.When the consumer becomes either better off or worse off because price change is not compensated by income change.

Description : “Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.

Last Answer : (b) always false

Description : An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left

Last Answer : (a) quantity demanded to decrease

Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.

Last Answer : (b) Price and quantity move in the opposite direction

Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite

Last Answer : (a) equal to zero

Description : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite

Last Answer : (b) positive

Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases

Last Answer : © price falls and demand also falls

Description : Specific tariffs are collected as (a) Fixed amount of money per unit traded (b) A percentage of the price of the product © A percentage on the quantity of imports (d) All of the above.

Last Answer : (a) Fixed amount of money per unit traded

Description : When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.

Last Answer : © Domestic price.

Description : flation (a) Always reduces cost of living (b) Always reduces standard of living © Reduces price of products (d) Reduces purchasing power of money

Last Answer : (d) Reduces purchasing power of money

Description : The value of a commodity expressed in terms of money is known as - (1) Price (2) Utility (3) Value (4) Wealth

Last Answer : (1) Price Explanation: The exchange value of every commodity can be expressed in terms of money. This possibility has enabled money to become a medium for expressing values when the growing elaboration of ... . Thus, price can be defined as exchange value of a commodity expressed in terms of money.

Description : Consumer gets maximum satisfaction at the point where - (1) Marginal Utility = Price (2) Marginal Utility > Price (3) Marginal Utility < Price (4) Marginal Cost = Price

Last Answer : (1) Marginal Utility = Price Explanation: As per the law of diminishing marginal utility, the utility of each successive unit goes on diminishing as more and more units of a commodity are consumed. A ... for it. In this way, the consumer will get the maximum satisfaction and will be in equilibrium.

Description : Consumer gets maximum satisfaction at the point where (1) Marginal Utility = Price (2) Marginal Utility > Price (3) Marginal Utility < Price (4) Marginal Cost = Price

Last Answer : Marginal Utility = Price

Description : The value of a commodity expressed in terms of money is known as (1) Price (2) Utility (3) Value (4) Wealth

Last Answer : Price

Description : Leontief’s model is open due to the fact that final demand is given from----- the system (a) within (b) outside © both (a) and (b) (d) none of the above.

Last Answer : (b) outside

Description : Decreases in price of a product results in increased consumption of the product as the product becomes cheaper compared to other products. This effect is known as (a) Substitution effect ; (b) Income effect ; (c) Diminishing marginal utility concept; (b) Law of diminishing returns 

Last Answer : (a) Substitution effect ;

Description : Increase in price of a product reduces the purchasing power as a result of which demand for a product goes up. This effect is known as (a) Substitution effect ; (b) Income effect ; (c) Diminishing marginal utility concept (d)Law of diminishing returns

Last Answer : ; (b) Income effect ;

Description : Which of the following is not a type of elasticity in economics………………… (a) Income elasticity ; (b) Price elasticity ; (c) Utility elasticity ; (d) Cross elasticity

Last Answer :  (c) Utility elasticity ;

Description : Which of the following statements defines density of population? (a) Number of persons living in per unit area. (b) Number of persons living in a country © Change in the number of inhabitants of a country during a specific period of time. (d) Absolute numbers added every year.

Last Answer : (a) Number of persons living in per unit area.