Answer sheet for Quiz - Assignment 1
Time taken 46 Min , 45 Sec
1. Utility is an abstract concept rather than a concrete, observable quantity.
2 Marks Incorrect
true
false
2. Which of the following approaches to utility theory?
2 Marks Correct
Fundamental and sequential approach
Systematic and unsystematic approach
Cardinal and ordinal approach
Constant and variable approach
3. Total utility is the aggregate of some of the satisfaction or benefits that the individual
gains by consuming a given amount of goods and services in an economy.
2 Marks Correct
true
false
4. The cost associated with the use of variable factors such as materials, manpower, semifinished goods, etc. is called as Variable Cost.
2 Marks Correct
true
false
5. The marginal utility comes to zero when the total utility is minimum.
2 Marks Correct
false
true
6. Total utility increases as more goods are consumed, marginal utility usually decreases
with each additional increase in the consumption of goods, this decreasing part is called
______________.
2 Marks Correct
Law of Total utility
Law of utility
Law of Diminishing Return
Law of Diminishing Marginal Utility
7. The second important concept of cost is Average Total Cost (ATC). It is a firms total cost
divided by quantity that is firm’s total cost per unit of output.
2 Marks Correct
true
false
8. A person consumes five units of commodity and derives U1, U2, U3, U4 and U5 utility
from the successiveunits of goods, the total utility will be __________.
2 Marks Correct
U1- U3 + U2 – U4 + U5
U1 + U2 + U3 + U4 + U5
U1 + U2 – U3 + U4 + U5
U1 – U4 + U2 + U3 + U5
9. The additional satisfaction or amount of utility gained from each extra unit of
consumption, is called _________.
2 Marks Correct
Marginal Utility
Average Utility
Total Utility
Utility theory
10. In Long Run, there are no fixed inputs and as a result there is no fixed cost too. So, in
long run a firm has a greater level of flexibility than in short run.
2 Marks Correct
true
false
11. Which of the following entities is a part of Marginal Utility?
2 Marks Correct
Change in demand curve
Change in satisfaction level
Change in total utility
Quantity demand
12. Which of the following is the aggregate of some of the satisfaction or benefits that the
individual gains by consuming given amount of goods and services in an economy?
2 Marks Correct
Average Production
Total utility
Budget constrain
Marginal utility
13. The utility gained by spending an additional rupee on good x is _______.
2 Marks Correct
ΔU / ΔP
ΔQ / ΔP
MUx / Px
Pa / Mua
14. Which of the following occurs if the total utility will be maximum?
2 Marks Correct
Marginal utility will zero
Marginal utility will decrease
Marginal utility will increase
Average utility will increase
15. A total product curve shows the quantity of outputs that can be obtained from different
amount of variable factor of Production, assuming that the Factors of Production are fixed.
2 Marks Correct
true
false
16. Which of the following is an abstract concept rather than a concrete, observable
quantity?
2 Marks Correct
Law of Diminishing Marginal Return
Utility
Law of Diminishing Marginal Utility
Marginal utility
17. Consumption of more amounts of goods and services up to certain extent is acceptable
beyond that saturation point will come which causes the reduction of _______.
2 Marks Incorrect
Average Utility
Total Utility
Marginal Utility
Mixed Utility
18. The Total Cost (TC) of any firm is the summation of Total Variable Cost (TVC) and
Total Fixed Cost (TFC).
2 Marks Correct
true
false
19. A firm experiences economies of scale when long-run average cost declines as the firm
expands its output.
2 Marks Correct
true
false
20. _________states that, “if the price of one factor rises while other factor prices remain
fixed, the firm will profit from substituting more of the other inputs for the more expensive
factor.”
2 Marks Correct
Marginal Revenue Product
Least-Cost Rule
Substitution Rule
Income distribution theory
21. The________ studies how income is determined in an economy.
2 Marks Correct
theory of demand
theory of production
theory of income distribution
theory of supply
22. MRP schedule for an input, we can determine the relationship between the __________
of the input and the quantity demanded of that input.
2 Marks Correct
demand
quality
price
supply
23. Income is the consumption and savings opportunity gained by an entity within a
specified time frame, which is generally expressed in monetary terms.
2 Marks Correct
true
false
24. The distribution of income combines the supply and demand for factors of production.
2 Marks Correct
false
true
25. Marginal revenue product represents the additional ______ that a firm earns from
using an additional unit of an input, with other inputs held constant
2 Marks Correct
resource
demand
revenue
output
26. The marginal-productivity theory is a great step forward in understanding the pricing
of different inputs.
2 Marks Correct
true
false
27. An outcome of the least-cost rule is the substitution rule.
2 Marks Correct
true
false
28. The money collected through tax is spent or given away by the government through
______ that are not made in return for current goods or services.
2 Marks Correct
insurance
social service
transfer payments
subsidies
29. The Marginal Productivity Theory of income states that, “the marginal revenue
productivity of a factor reveals the demand for that factor.”
2 Marks Correct
true
false
30. Wealth is a stock while income is a flow per unit of _________.
2 Marks Correct
capital
time
dollar
rupee
Attempted 29 of 30 questions