Market Equilibrium MCQ for Class 11 Ecomonics Chapter 5 with Answers

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MCQ Questions for Class 11 Ecomonics with Answers: Introductory Microeconomics

Q1. The law of equi marginal utility considers price of money as:

(i) Zero
(ii) less than one
(iii) more than one
(iv) one

(iv) one

Q2. Law of diminishing marginal utility may not apply to-

(i) Money
(ii) Butter
(iii) Pepsi, Coke, etc.
(iv) Ice cream

(i) Money

Q3. Which one of the following assumptions is not necessary for the cardinal utility theory?

(i) Rationality of the consumer
(ii) Constant marginal utility of money
(iii) Perfectly competitive market
(iv) Additivity of utility

(iii) Perfectly competitive market

Q4. Marginal utility approach to demand was given by

(i) J.R. Hicks
(ii) Alfred Marshall
(iii) Robbins
(iv) AC Pigou

(ii) Alfred Marshall

Q5. After reaching the saturation point, consumption of additional units of the commodity cause:

(i) Total utility to fall and marginal utility to increase.
(ii) Total utility and marginal utility both to increase.
(iii) Total utility to fall and marginal utility to become negative.
(iv) Total utility to become negative and marginal utility to fall.

(iii) Total utility to fall and marginal utility to become negative.

Q6. The aim of the consumer in allocating his income is to –

(i) maximize his total utility
(ii) maximize his marginal utility
(iii) to buy the goods he wants most whatever the price
(iv) to buy the goods which he expects to be short in supply

(i) maximize his total utility

Q7. The satisfaction which a consumer derives in the consumption of a commodity is equal to ₹ 320. The price of that commodity is ₹180. What will be his consumer surplus?

(i) ₹180
(ii) ₹200
(iii) ₹140
(iv) ₹500

(iii) ₹140

Q8. The difference between the price a consumer is willing to pay and the price he actually pays is called-

(i) Excess Price
(ii) Excess Demand
(iii) Consumer Surplus
(iv) Exploitation

(iii) Consumer Surplus

Q9. Suppose that the price of a new bicycle is ₹ 200. Natalie values a new bicycle at ₹400. What is the value of total consumer surplus if Natalie buys a new bike?

(i) ₹500
(ii) ₹300
(iii) ₹200
(iv) ₹400

(iii) ₹200

Q10. When economists speak of the utility of a certain good, they are referring to:

(i) the demand for the good
(ii) the usefulness of the good in consumption
(iii) the satisfaction gained from consuming the good
(iv) the rate at which consumers are willing to exchange one good for another

(iii) the satisfaction gained from consuming the good

Q11. Excess demand can be seen in:

(i) Fixed market price
(ii) Lowest fixed price
(iii) Highest fixed price
(iv) None of these.

(iii) Highest fixed price

Q12. Which among the following statement is not true:

(i) Demand of labor is done by the producer
(ii) Demand of labor depends open its productivity
(iii) Marginal productivity of a labor is his maximum wages
(iv) All of the above.

(iv) All of the above.

Q13. Which factors help in the determination of equilibrium price:

(i) Demand
(ii) Supply
(iii) Both (i) and (ii)
(iv) None of the above.

(iv) None of the above.

Q14. Which of the following is the component of instrument pricing:

(i) Rent
(ii) Wages
(iii) Interest
(iv) None of these.

(iii) Interest

Q15. Minimum support price of wheat is called:

(i) Price ceiling
(ii) Price floor
(iii) Market price
(iv) Equilibrium price.

(ii) Price floor

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Market Equilibrium MCQ Questions for Class 11 Ecomonics Chapter 5 with Answers