TN STATEBOARD 11th ECONOMICS CHAPTER 2

TEST

CONSUMPTION ANALYSIS CHAPTER TEST

 

TEST –2

PADVIKSHA BLOG

 

TIME: 1 HOUR 15 Minutes

 

TOTAL MARKS: 25

 

 

         

I Multiple Choice Questions (MCQ) (Mark- 5 x 1 = 5)

Write all questions

1.Gossen’s first law is known as.

a. Law of equi-marginal utility.

b. Law of diminishing marginal utility

c. Law of demand.

d. Law of Diminishing returns.

 

2. Elasticity of demand is equal to one indicates

a. Unitary Elastic Demand

b. Perfectly Elastic Demand

c. Perfectly Inelastic Demand

d. Relatively Elastic Demand

 

3. When TU diminishes, MU is

a) Negative

b) Positive

C) Decreases

d) Increases

 

4. Give potential price is Rs.375 and the actual price is Rs.200. Find the consumer surplus.

a) 375

b) 175

C) 50

d) 200

 

5. If the Co-efficient elasticity is equal to zero it represents ___________ Supply

a. Perfectly elastic

b. Inelastic

c. perfectly inelastic

d. None of the above

 

II ANSWER THE FOLLOWING QUESTIONS IN ONE OR TWO SENTENCES. (3x2=6)

 

Write Any 3 Questions:

1. What is the law of demand?

2. What are the determinants of elasticity of demand?

3. Name the basic approaches to consumer behaviour.

4. What are Giffen goods? Why it is called like that?

5. Mention the classifications of wants.

 

III Short answer questions. (3 X 3 = 9)

 

WRITE ANY 3 QUESTIONS

1. Mention the relationship between marginal utility and total utility.

  

2. Write a note on:

a. Needs

b. Price line or Budget line

c. Utility

 

3. Explain the theory of “consumer’s surplus”.

 

4. Distinguish between extension and contraction of demand.

 

IV. Long Answer question (1 x 5 = 5)

 

WRITE ANY ONE QUESTION

1. Explain the law of demand and its exceptions.

2. Elucidate the law of diminishing marginal utility with diagram.

 

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