CBSE Class 12 Economics Theory of Consumer Behaviour MCQs Set 03

Question. The capability of a commodity to satisfy human wants is:
(a) Consumption
(b) Utility
(c) Quality
(d) Taste

Answer : B

Question. When marginal utility is negative, then total utility:
(a) is maximum
(b) Starts decreasing
(c) increases at decreasing rate
(d) None of the options

Answer : B

Question. According to Marshall, utility of a commodity:
(a) Can be measured by money
(b) Cannot be measured by money
(c) Can be measured in cardinal numbers
(c) Both (a) and (b)

Answer : C

Question. Demand Curve generally slopes:
(a) Upward from left to right
(b) Downward from left to right
(c) Parallel to X-axis
(d) Parallel to Y-axis

Answer : B

Question. In case of perfectly elastic demand, the value of Ed is:
(a) One
(b) Greater than one
(c) Less than one
(d) Infinite

Answer : C

Question. ———— is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket.
(a) Consumer behavior
(b) Consumer interest
(c) Consumer attitude
(d) Consumer perception

Answer : B

Question. ________________ is one of the most basic influences on an individual’s needs, wants, and behaviour.
(a) Brand
(b) Culture
(c) Product
(d) Price

Answer : B

Question. _____________ (is) are transmitted through three basic organizations: the family, religious organizations, and educational institutions; and in today’s society, educational institutions are playing an increasingly greater role in this regar(d)
(a) Consumer feedback
(b) Marketing information systems
(c) Market share estimates
(d) Cultural values.

Answer : D

Question. With respect to post purchase behavior, the larger the gap between expectations and performance:
(a) The greater likelihood of re-purchase.
(b) The greater the customer’s dissatisfaction.
(c) The less likely the consumer will be influenced by advertising
(d) The less likely the consumer will need sales confirmation and support.

Answer : B

Question. All of the following are part of the adoption process that consumers may go through when considering an innovation EXCEPT:
(a) Awareness.
(b) Process.
(c) Interest.
(d) Trial.

Answer : B

Question. The demand for necessaries is:
(a) Elastic
(b) Inelastic
(c) Unitary elastic
(d) Perfectly elastic

Answer : B

Question. In case of perfectly elastic, demand curve is:
(a) Vertical
(b) Horizontal
(c) Downward sloping
(d) None of the options

Answer : B

Question. What is the behaviour of AP when TP increases at decreasing rate?
(a) AP increases
(b) AP decreases
(c) AP may increase or decrease
(d) AP is constant

Answer : C

Question. __________ refers to change in output when only one input is changed, other inputs remaining unchanged.
(a) Total product
(b) Average product
(c) Marginal product
(d) Returns to a factor

Answer : D

Question. ____________ shows the pattern of change in total product when only one input is increased, other inputs remaining unchanged.
(a) Marginal product
(b) Average product
(c) Law of variable proportions
(d) Returns to a factor

Answer : C

Question. The marginal product curve in the input-output plane, looks like ____________ .
(a) a ‘U’ shaped curve
(b) an inverse ‘U’ shaped curve
(c) an inverse ‘S’ shaped curve
(d) an ‘S’ shaped curve

Answer : B

Question. Who basically propounded the concept of Law of Equimarginal Utility ?
(a) Marshall
(b) Gossen
(c) Ricardo
(d) J. S. Mill

Answer : C

Question. The ability of satisfying human want in a goods is called its:
(a) Productivity
(b) Satisfaction
(c) Utility
(d) Profitability

Answer : C

Question. Utility is related to:
(a) Usefulness
(b) Morality
(c) Satisfaction of human wants
(d) All of the options

Answer : D

Question. Law of Equi-marginal utility is called:
(a) Law of increasing utility
(b) Law of diminishing utility
(c) Law of substitution
(d) None of the options

Answer : C

Question. Health is not wealth because it has no:
(a) Scarcity
(b) Utility
(c) Marketability
(d) None of the options

Answer : C

Question. The law of equi-marginal utility is otherwise called as:
(a) Law of substitution
(b) Law of diminishing MU
(c) Law of negative returns
(d) None of the options

Answer : A

Question. In case of perfectly elastic demand, demand curve becomes:
(a) Horizontal
(b) Vertical
(c) Downward sloping
(d) None of the options

Answer : A

Question. Marketing managers should adapt the marketing mix to ___________________ and constantly monitor value changes and differences in both domestic and global markets.
(a) Sales strategies
(b) Marketing concepts
(c) Cultural values
(d) Brand images.

Answer : C

Question. The business marketer normally deals with _____________ than the consumer marketer does.
(a) far greater but smaller buyers
(b) far greater and larger buyers
(c) far fewer but far larger buyers
(d) far fewer and smaller buyers

Answer : C

Question. The place in the business buying behavior model where interpersonal and individual Influences might interact is called the__________
(a) Environment.
(b) Response.
(c) Stimuli.
(d) Buying center.

Answer : B

Question. Factors such as supplier reputation for repair and servicing capabilities are important criteria for evaluation at which stage in the business buying process?
(a) problem recognition
(b) supplier search
(c) supplier selection
(d) order-routine specification.

Answer : C

Question. What is the behaviour of TP, when MP becomes negative?
(a) TP increases at an increasing rate
(b) TP increases at diminishing rate
(c) TP is maximum
(d) TP decreases

Answer : D

Question. The addition of utilities obtained from all units of a goods is called :
(a) Marginal Utility
(b) Total Utility
(c) Maximum Satisfaction
(d) Additional Utility

Answer : B

Question. The propounder of law of diminishing marginal utility is:
(a) Gossen
(b) Adam smith
(c) Chapman
(d) Hicks

Answer : A

Question. Which of the following factor affects demand ?
(a) Price
(b) Change in income
(c) Taste of the Consumer
(d) All of these

Answer : D

Question. When TU is maximum then MU is?
(a) Zero
(b) Negative
(c) Both
(d) None.of the options

Answer : A

Question. __________ measures the productivity of a factor input.
(a) Total product
(b) Average product
(c) Marginal product
(d) Returns to a factor

Answer : B

Question. If AP of one unit of a variable factor is 12 units and that of 2 units of the variable factor is 16 units, then the marginal product of 2nd unit of the variable factor is __________ .
(a) 28 units
(b) 20 units
(c) 4 units
(d) 44 units

Answer : B

Question. ____________, at any particular level of employment of an input, is the average of all marginal products up to that level.
(a) Total product
(b) Average product
(c) Marginal product
(d) Returns to a factor

Answer : B

Question. Which of the following statements accurately describe the relationship between AP and MP?
(a) AP rises when MP is above it and falls when MP is below it.
(b) MP intersects AP at its minimum point.
(c) AP an MP are always parallel to each other.
(d) AP is always rising when MP is falling and vice-versa.

Answer : A

Question. The demand for commodity on which a consumer spends more percentage of his income is:
(a) More elastic
(b) Less elastic
(c) Unity
(d) None of the options

Answer : A

State true or false:

Question. Utility is an intensive assumption.
Answer : True

Question. Demand curve is generally negative sloped.
Answer : False

Question. The elasticity of the demand of the object and the expenditure on the object is closely related.
Answer : True