CBSE Class 12 Economics Theory of Consumer Behaviour MCQs Set B

Question. Who gave the cardinal concept of utility?
(a) Marshall
(b) Pigou
(c) Hicks
(d) Samuelson

Answer : A

Question. Which of the following statement is true ?
(a) Utility means want-satisfying power
(b) Utility is a function of intensity of desire
(c) Desire of consumption gives birth to utility
(d) All of the options

Answer : D

Question. Which of the following is a characteristic of utility ?
(a) Utility is a psychological phenomenon
(b) Utility is subjective
(c) Utility is a relative concept
(d) All of the options

Answer : D

Question. When TU becomes maximum, MU is:
(a) Positive
(b) Negative
(c) Zero
(d) None of the options

Answer : C

Question. For the marketing manager, social class offers some insights into consumer behavior and is potentially useful as a ___________________.
(a) Market research information
(b) Market segmentation variable
(c) Source of understanding competition’s strategy
(d) Source to predict future trends

Answer : A

Question. The reason that higher prices may not affect consumer buying is _______________.
(a) Most consumers prefer brand names which have higher prices
(b) 70% of the total population looks for quality services and is willing to pay higher prices
(c) Consumers believe that higher prices indicate higher quality or prestige
(d) Most consumers feel that the price is actually affordable

Answer : A

Question. Secondary reference groups include ________________.
(a) Family and close friends
(b) Sports groups
(c) Ethnic and religious groups
(d) Fraternal organizations and professional associations.

Answer : C

Question. Indifference curves are
(a) Convex to Origin
(b) Concave
(c) Neither ‘a’ nor ‘b’
(d) None of the options

Answer : A

Question. Marketers are always trying to spot ____________ in order to discover new products that might be wante(d)
(a) opinion graphers
(b) dissonant groups
(c) cultural shifts
(d) benchmarks

Answer : C

Question. Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors are called__________
(a) Cultures.
(b) Subcultures.
(c) Social classes.
(d) Social factors.

Answer : C

Question. Even though buying roles in the family change constantly, the ___________ has traditionally been the main purchasing agent for the family.
(a) Wife
(b) husband
(c) teenage children
(d) grandparent

Answer : A

Question. A ______________ is a person’s pattern of living as expressed in his or her activities, interests, and opinions.
(a) role
(b) status
(c) position
(d) lifestyle

Answer : D

Question. Consumer Surplus is based on which concept?
(a) Diminishing Marginal Utility
(b) Law of Demand
(c) Indifference curve Approach
(d) None of the options

Answer : A

Question. An indifference curve is always:
(a) Concave to the origin
(b) Convex to the origin
(c) L-shaped
(d) A vertical straight line

Answer : B

Question. When a firm buys a product or service for the first time, it is facing a _____________
(a) Habitual re buy situation.
(b) Straight re buy situation.
(c) Modified re buy situation.
(d) New task situation.

Answer : D

Question. The stage of the business buying process where the buyer describes the characteristics and quantity of the needed item is called ___________
(a) Problem recognition.
(b) General need description.
(c) Product specification.
(d) Proposal solicitation.

Answer : B

Question. Consumer is in equilibrium when:
(a) MUx = PUx
(b) MUx > PUx
(c) MUx < Px
(d) MUx ÷ Px

Answer : A

Question. How many tremendous curves can touch the budget line:
(a) One
(b) Two
(c) Several
(d) Depends on the basis of indifference maps.

Answer : A

Question. Any statement about the demand of an object is considered complete when it is mentioned in the following:
(a) Price of good
(b) Demand of good
(c) Time period
(d) All of the options

Answer : D

Question. According to total outlay method, the demand of a good is sinelastic when:
(a) Price will fall with the increase in amount spent
(b) When price of good decreases and money spent decreases
(c) Expenditure remains the same, even if price falls
(d) Expenditure decreases with the increase in price.

Answer : B

Question. When marginal utility from the consumption of a commodity is zero, then the:
(a) Total utility is zero
(b) Total utility is highest
(c) Total utility is rising
(d) Total utility is falling

Answer : B

Question. Which economist said that money is the measuring rod of utility?
(a) (a)C Pigou
(b) Alfred Marshall
(c) Adam Smith
(d) Robbins

Answer : B

Question. The law of equi marginal utility considers price of money as:
(a) Zero
(b) Less than one
(c) More than one
(d) One

Answer : D

Question. Marshallian utility analysis is known as ________.
(a) Cardinal
(b) Ordinal
(c) Classical
(d) Historical

Answer : A

Question. The basic premise of the _____________ is that people’s possessions contribute to and reflect their identities; that is, “we are what we have.”
(a) lifestyle concept
(b) self-concept
(c) personality concept
(d) cognitive concept

Answer : B

Question. According to Maslow’s Hierarchy of Needs, the lowest order of needs are called:
(a) Self-actualization needs.
(b) Social needs.
(c) Safety needs.
(d) Physiological needs

Answer : D

Question. A ___________ is a strong internal stimulus that calls for action.
(a) Driv
(b) cue
(c) response
(d) perception

Answer : A

Question. ___________ puts people into a frame of mind of liking or disliking things, of moving toward or away from them.
(a) A rule
(b) An attitude.
(c) A belief
(d) A cue.

Answer : B

Question. When the Average Product (AP) is maximum, the Marginal Product (MP) is:
(a) Equal to AP
(b) Less than AP
(c) More than AP
(d) Can be any one of the above

Answer : A

Question. Both AP and MP curves are generally ___________ .
(a) U-shaped
(b) Inversely U-shaped
(c) Rising
(d) Falling

Answer : B

Question. When average product increases, the marginal product is:
(a) Less than average product
(b) Equal to the average product
(c) More than average product
(d) None of the options

Answer : C

Question. The average product curve in the input-output plane, will be __________.
(a) an ‘S’ shaped curve
(b) an inverse ‘S’ shaped curve
(c) a ‘U’ shaped curve
(d) an inverse ‘U’ shaped curve

Answer : D

Question. Which of the following is the most valuable piece of information for determining the social class of your best friend’s parents?
(a) The number of years schooling that they had
(b) Their ethnic backgrounds
(c) Their combined annual income
(d) Their occupations

Answer : D

Question. _________________ refers to the buying behavior of final consumers.
(a) Consumer buyer behavior.
(b) Target market buying
(c) Market segment buying
(d) Business buying behavior

Answer : A

Question. The starting point in understanding how consumers respond to various marketing efforts the company might use is the:
(a) Lipinski model of buying behavior.
(b) Stimulus-response model of buyer behavior.
(c) Freudian model of buying behavior.
(d) Maslow’s model of life-cycle changes.

Answer : B

Question. The stage in the buyer decision process in which the consumer is aroused to search for more information is called____________
(a) Information search.
(b) Evaluation of alternatives
(c) Search for needs
(d) Perceptual search.

Answer : A

Question. At equilibrium, the slope of the indifference curve is:
(a) Equal to the slope of budget line
(b) Greater than the slope of budget line
(c) Smaller than the slope of budget line
(d) None of the options

Answer : A

Question. Indifference curves never intersect each other due to:
(a) Different levels of satisfaction
(b) Same levels of satisfaction
(c) Convex to origin
(d) Concave to origin

Answer : A

Question. Total utility is maximum when :
(a) Marginal utility is maximum
(b) Marginal utility is Zero
(c) Average utility is maximum
(d) Average utility is Zero

Answer : B

Question. A book “The Nature and significance of Economic Science” is written by:
(a) Alfred Marshal
(b) Lionel Robbins
(c) Samuelson
(d) Adam Smith

Answer : B

Question. Several characteristics are especially important in influencing an innovation’s rate of adoption. _________ is the degree to which the innovation may be tried on a limited basis.
(a) Relative advantage
(b) Synchronization
(c) Compatibility
(d) Divisibility .

Answer : D

Fill in the blanks:

Question. If the price of substitute goods increases then the demand curve shifts to the ………….
Answer : Right

Question. According to Marshall utility can be measured in terms of ………….
Answer : Money

Question. Car and Petrol are goods ………….
Answer : Substitute