Economics Practice MCQ Page 2
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1090 For which of the following would households’ preferences be most stable over time?
- Hamburgers.
- Big mace.
- Beef
- Meat.
- food
Question: 1092 The law of diminishing marginal utility implies that the marginal utility of a good decreases as
- A household consumes more of it
- It gets more expensive
- A household’s income goes up
- Preferences change
- Preferences change
Question: 1094 Which of the following would be least likely to cause a consumer to eat less beef?
- An increase in the price of beef
- An increase in the price of lamb
- A reduction in the consumers’ income
- A reduced preference for beef
- A reduced preference for beef
Question: 1096 Diamonds are more expensive than water because
- They yield higher total utility
- They yield higher marginal utility
- They are more useful
- Markets do not always reflect value
- Households are irrational
Question: 1097 If two goods have the same marginal utility for a consumer who is maximizing utility, then
- She will consume only one of them
- She will consume equal quantities of them
- She will be willing to pay the same price for each of them
- The total utility gained from each of them is equal
- The total utility gained from each of them is equal
Question: 1098 The total utility gained from each of them is equal.
- Changes in preferences
- Changes in income
- Changes in the prices of small versus large cars
- Changes in the prices of small versus large cars
- Changes in the prices of small versus large cars
Question: 1099 If the marginal utility of nutmeg to a consumer exceeds that of ginger, then the consumer
- Is not in consumer equilibrium
- Will not buy any ginger
- Will buy some ginger but less than he buys of nutmeg
- Is willing to pay more for nutmeg than for ginger
- Will not buy any nutmeg
Question: 1101 The amount of income left over for a consumer in equilibrium is
- Her consumer surplus
- Zero
- Allocated to all goods evenly
- Excess demand
- Allocated to the goods with higher marginal utility
Question: 1103 Allocated to the goods with higher marginal utility.
- 10
- 6
- 16
- 26
- Impossible to determine from table 1
Question: 1105 If fish cost $3each. Then the marginal utility per dollar of the third fish consumed by the Catt family in table 1is
- 2
- 4
- 6
- 15.3
- Impossible to determine from table 1
Question: 1106 If fish and milk cost$3 and $2 respectively and the income of the Catt family in table1 increases to$15 ten it should consume
- 1fish and 6 gallons of milk
- 5 fish and no milk
- 2 fish and 4 gallons of milk
- 3 fish and 3 gallons of milk
- An amount that cannot be determined from table1
Question: 1107 With the income of the Catt family in table 1 held constant at$15 and the price of fish at $3, suppose that the price of milk rises to $3 per gallon. The combination of milk and fish that maximizes utility is now
- 3 fish and 2 gallon of milk
- 2 fish and 3gallon of milk
- 1 fish and 4 gallon of milk
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
1090 . E
1092 . A
1094 . B
1096 . B
1097 . A
1098 . D
1099 . D
1101 . B
1103 . B
1105 . A
1106 . D
1107 . A
Select Page Number
MCQ for Practicing Subject Tests