Managerial Economics MCQs and Notes

R

🎓 Tutor III ⭐ 34.60K Points

Q. The rate at which a consumer is able to substitute one good for another is determined by the …….

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✅ Correct Answer: (C) ratio of the prices of the goods

A

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Q. The typical indifference curve ……..

(A) shows that as a consumer has more of a good he/she is less willing to exchange it for one unit of another good.
(B) shows all combinations of goods that give a consumer in same level of utility
(C) shifts out if income increases
(D) both b and c

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✅ Correct Answer: (B) shows all combinations of goods that give a consumer in same level of utility

P

🎓 Tutor III ⭐ 35.28K Points

Q. A consumer with a given income will maximise their utility when:

(A) the marginal utility derived from each commodity is equal.
(B) the marginal utility derived from each product consumed is zero.
(C) the total utility derived from each commodity consumed is equal.
(D) the marginal utilities derived from each commodity consumed are proportional

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✅ Correct Answer: (D) the marginal utilities derived from each commodity consumed are proportional

A

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Q. Which of the following statements is NOT TRUE of indifference curves?

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✅ Correct Answer: (B) they are convex to origin