Suneha XI COm midterms practice
1. ____________ shows various combinations of two goods that give same amount of satisfaction to the consumer? (1)
2. The total utility divided by the number of units consumed is known as? (1)
3. Which of the following statements regarding utility is not true? (1)
(a) It is a satisfying power of a commodity.
(b) Utility is always measurable
(c) It helps consumers to make choices.
(d) It is purely a subjective entity.
4. Example of Macro Economics? (1)
a) Production of a firm
b) Demand of an individual consumer
c) Aggregate demand
d) All of the above
5. Scarcity means _________ (1)
a) Increase of resources
b) Shortage of resources
c) Constant resources
d) Both A and B
6. Which of the following is the relation that the law of demand defines? (1)
a) Income and price of a commodity
b) Price and quantity of a commodity
c) Income and quantity demanded
d) Quantity demanded and quantity supplied
7. What are the reasons for the Rightward shift of PPC? (1)
a) Migration
b) War
c) Skill development programme
d) None
8. Abbreviate PPF ___________ (1)
9. What is another name for opportunity cost in economics? (1)
10. The central economy in market research is solved by. (1)
(a) Demand for goods (b) Supply of goods
(c) Planning authority (d) Market mechanism
11. _______ is the ratio of a particular product sacrificed to manufacture another product. (1)
12. Explain any three determinants of demand for a commodity. (3)
13. “Define a budget line. When can it shift to the right? (3)
14. What changes will take place in TU, when: (i) MU curve remains positive; (ii) MU becomes ‘0’ ; (iii) MU is negative. (3)
15. A consumer consumes only two goods X and Y whose prices are Rs.4 and Rs.5 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 5 and that of Y equal to 4, is the consumer in equilibriumRs.Give reasons. What will a rational consumer do in this situationRs.Use utility analysis. (4)
16. Discuss the central problems of the economy. (3)
17. Differentiate between positive economics and normative economic. (4)
