MCQ on Indifference Curves Pdf

Spread the love

Indifference Curves MCQ with Answers Pdf

1. What is the indifference curve?

(1) A graph showing a combination of two goods that give a consumer equal utility and satisfaction is known as an indifference curve.

(2) An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent.

(3) Both 

(4) None of these 

Answer: 3

2. What is the other name for the indifference curve?

(1) Iso-Utility Curve

(2) Mono-Utility Curve

(3) Poly-Utility Curve

(4) None of these 

Answer: 1

3. Who developed the indifference curve?

(1) Francis Y. Edgeworth

(2) Amartyasen

(3) Andrei Shleifer

(4) None of these 

Answer: 1

4. An indifference curve is related to_______

(1) Choices and preferences of the consumer

(2) Prices of goods X and Y

(3) Consumer’s income

(4) Total utility from goods X and Y

Answer: 1

5. Indifference curve is always

(1) Concave to the origin

(2) Convex to the

(3) L shaped

(4) A straight line

Answer: B

6. The slope of the indifference curve is equal to which of the following?

(1) One

(2) Marginal utility

(3) Marginal rate of substitution

(4) None of these

Answer: 3

7. In the case of a convex indifference curve______

(1) MRS XY is constant

(2) MRS XY is increasing

(3) MRS XY is negligible

(4) MRS XY is diminishing

Answer: 4

8. Which of the following is not the property of indifference curves?

(1) Higher the indifference curves, the higher the level of satisfaction.

(2) Indifference curve is downward sloping.

(3) Indifference curve is concave to the origin.

(4) Two indifference curves cannot intersect each other.

Answer: C

9. Why is the indifference curve convex to origin?

(1) Due to the law of diminishing marginal utility

(2) Due to monotonic preferences

(3) Due to the continuous decline of

(4) Both a and b

Answer: C

10. ‘Higher the indifference curve higher will be level of satisfaction. The statement is

(1) Always true

(2) Always false

(3) Sometimes true and sometimes

(4) True only if the price effect is positive

Answer: 1

11. Which of the following is not the property of the indifference curve:

(1) Higher the indifference curves higher the level of satisfaction

(2) Two indifference curves cannot intersect each other

(3) Indifference curve is concave to the origin

(4) Indifference curve is downward sloping

Answer: 3

12. An Indifference curve slopes down towards the right since more of one commodity and less of another result in which of the following?

(1) Decreasing expenditure

(2) Maximum satisfaction

(3) Greater satisfaction

(4) Same satisfaction

Answer: 4

13. What are the properties of the indifference curve?

(1) indifference curves can never cross, 

(2) the farther out an indifference curve lies, the higher the utility it indicates, 

(3) indifference curves always slope downwards, and 

(4) indifference curves are convex.

(5) All of these 

Answer: 5

14. What are the limitations of the indifference curve?

(1) Not consider speculative demand, 

(2) interdependence of the preferences of consumers in the form of snob, Veblen, and Bandwagon effects, 

(3) The effects of advertising, stocks, 

(4) All of these 

Answer: 4

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *