Micro Economics MCQ
Micro Economics MCQ Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
121. In the case of an indifference curve
A. dU/dX>dU/dY
B. dU/dX = dU/dY
C. dU/dX<dU/dY
D. dU/dX≤dU/Dy
Answer:B
122. An Indifference Curve to the right of another represents combinations which
are:
A. Indifferent
B. Preferable
C. Inferior
D. Superior
Answer:B
123. As moving from left to right through an indifference curve, the MRS of X for
Y
A. Increases
B. Remains the same
C. Decreases
D. Both A and C
Answer:C
124. The slope of an indifference curve represents:
A. Price ratio of good X and Y
B. MRTS L,K
C. MRSx,y
D. MRS
Answer:C
125. In the case of perfect complementaries, the MRS between goods is:
A. Zero
B. Positive
C. Negative
D. None
Answer:A
126. Horizontal indifference curve indicates:
A. Good X is a neuter
B. Good Y is a neuter
C. None of these
Answer:A
127. In a combination of X and Y, if price of Y alone changes, the X intercept will
A. Rotate upwards
B. Rotate downwards
C. Not be changed
D. Parallel
Answer:C
128. At the point of tangency of an indifference curve with a budget line:
A. MRSxy =Px/Py
B. MRSxy>Px/PY
C. MRSxy<Px/PY
D. MRSxy≥Px/PY
Answer:A
129. Commodities bought in larger quantities when income rises are called:
A. Normal goods
B. Inferior goods
C. Giffen goods
D. None
Answer:A
130. The curve showing the quantity of a good that would be purchased at various income levels:
A. Income Consumption Curve
B. Price Consumption Curve
C. Engel Curve
D. Indifference Curve
Answer:C
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