CBSE Class 12 Economics Consumers Behaviour And Demand VBQs read and download in pdf. Value Based Questions come in exams for Economics in Standard 12 and are easy to learn and helpful in scoring good marks. You can refer to more chapter wise VBQs for Class 12 Economics and also get latest topic wise very useful study material as per latest 2021 NCERT book for Class 12 Economics and all other subjects for free on Studiestoday designed as per latest Grade 12 CBSE, NCERT and KVS syllabus and examination pattern
1. Keeping the health of the people in mind, the government should be considerate in fixing the .price of essential items like milk, as price elasticity of demand is;
Ans) a More than one b) less than one, c) equal to one d) zero
2. For proper allocation of his income, a consumer shall maximize his gain when the
Ans.a) MU=Price b) MU>Price c) MU<Price d)None
3. Price of petrol has increased. As a result, the consumer should:
a) .Decrease its demand, b) Economize on it by no wastage c)Increase its demand d) none
4. How can the government meet the amount demanded of an essential good like onions in the face of shortage?
a) Rise the price b) Fall in price c) Rationing d)None
5. Taste and preference for cola have increased manifold their consumption among children. Being unhealthy, it should be urgently checked through
a) Rise in price b ) Rationing c) Parent‘s help d) school as a counselor
6. Before the purchases, a given consumer in order to behave rationally should look at
a) Price of the product b) Its marginal utility c) After-sale service d) All the three.
7. Demand for water is :
a) More elastic b) Inelastic c) Perfectly elastic d) perfectly inelastic
8. On account of subsidy given to an essential item, consumers have started spending more on this item. Based on the principle of ‗equal distribution, . What can be done to restrict its consumption?
Ans) a) increase in its price b) ration it c) increase its supply d) none of the above
9. What is the shape of the demand curve when the elasticity of demand is perfectly elastic?
Ans a) horizontal to the x axis b) vertical to the x axis c) slope downwards d) none.
10. Price of petrol is very high but still its demand continues to be very high. Suggest two measures by way of which demand of petrol can be decreased.
Ans Demand for petrol is high despite of its price, being high because of derived demand.. As the cars are in demand, petrol is in demand.
Two measures of conserving these scarce resources are: a) car pool instead of each member with a car Use alternate methods of transportation which are cheaper and cleaner like Metro, whenever possible
11. Demand for electricity is increasing but due to scarcity of resources. Its supply cannot be increase. Suggest two measures as how you can curtail the demand for electricity?
Ans Demand for electricity can be curtailed by
a)Switching off its usage when not in use, eg TV to be switched off when not in use.
b) Consumers of electricity should conserve it, for example, by using 1 AC instead of 3 AC for three family members separately.
12. As a consumer would you equate price of a commodity with total utility or marginal utility? Give reason in support of your answer.
Ans A consumer would equate price of the commodity with its marginal utility and not total utility.
Reason: The consumer, while buying a unit of a commodity, compares additional benefit and additional cost related to the unit. Additional benefit is marginal utility, while additional cost is p of the commodity. He will buy a particular unit only when MU is at least equal to P. And he strikes his equilibrium when
MU =P The consumer does not compare P with TU because TU is the sum total of utility resulting from all the units of a commodity he is buying . It cannot be compared with P which is always related to one unit.
13. How does it matter to a consumer in case of MRSxy>Px/Py?
Ans MRSxy, refers to ratio between change in y commodity to a change x commodity or the amount of goody that the consumer is willing to give up for one more unit of good X according to his taste and preferences, Px/Py, on the other hand , the amount of good Y that the consumer has to give up for one more unit of good X, according to the market price of X and Y. In case MRSxy > Px/PY, it implies a situation that what the consumer is willing to give up exceeds what he is required to give up.. Will the consumer be rational in such a situation, if he stops buying more of x in place of Y? Certainly not.so, he better moves downward on IC. Increase in his purchase of x in place of Y, will reduce his MRS to align with the required rate of substitution between x and y.