1st Year Principles of Economics Chapter 2 TestConsumer's Demand Theory

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Utility is related with:

   1. Usefulness

   2. Useless

   3. Necessities

   4. Desire

2. Which one is not an economic want:

   1. Cloth

   2. Watch

   3. Air

   4. Car

3. First and basic law of consumption is:

   1. Law of demand

   2. Law of decreasing return

   3. Law of supply

   4. Law of diminishing marginal utility

4. Symbol of marginal utility is:

   1. MA

   2. MR

   3. MC

   4. MU

5. Utility of commodity is zero, when:

   1. Want is satisfied upto a certain extent

   2. Want is fully satisfied

   3. Utility is positive 

   4. Want is not satisfied

6. By continuous use of commodity, marginal utility:

   1. Positive

   2. Increases

   3. Decreases

   4. Zero

7. Which economist did present, cardinal theory of utility:

   1. Marshall

   2. Koroos

   3. Cannon

   4. J.B.Say

8. Want of a commodity is satisfied, when its marginal utility is:

   1. Positive

   2. Zero

   3. Negative

   4. Minimum

9. Direct satisfaction providing goods are:

   1. Free goods

   2. Inferior goods

   3. Consumer goods

   4. Capital goods

10. On which of the following law of diminishing marginal utility is applicable:

    1. Money and wealth

    2. Historical articles

    3. Normal goods of need

    4. Narcotics