Fill in the blanks / Multiple choice

Chapter 1
The term microeconomics and macroeconomics were first used by ____________
Adam smith
Robbins
Ragnar Frisch
Marshall

Microeconomics is the study of ____________
whole economy
general price level
national output
individual economic unit

Microeconomics is concerned with the study of
aggregate demand
aggregate supply
individual demand
national income

___________ is the important assumption of microeconomics.
Unemployment
Partial unemployment
Full employment
Partial employment

Microeconomics is also called _____________
Income theory
Price theory
Growth Theory
Employment Theory

Microeconomic analysis adopts _____ method.
lumping
aggregative
slicing
inclusive

Microeconomics is a _________ equilibrium approach.
partial
general
total
multi variable

Microeconomic approach was enthroned by _______________
Robinson
Marshall
Frisch
Smith

Microeconomics assumes______________
monopoly
oligopoly
perfect competition
monopolistic competition

The study of microeconomics is ____________ in nature.
comprehensive
aggregative
summative
individualistic

The term microeconomics derived from the Greek Word _____________
Microeconomics is concerned with the study of
______________/__________________
Microeconomics is a _______________ equilibrium analysis.
Microeconomics adopts ______________approach
The credit for the development of micro economics approach goes to
____________
________________ implies that every individual under consideration behaves in
an economically rational manner.
Microeconomics deals with Factor Pricing
















Chapter 2
1. Marginal utility diminishes, as consumption of a
commodity _________________

increases

decreases

remains constant

becomes zero

2. ______________ refers to want satisfying power of a
commodity.

usefulness

utility

satisfaction

happiness

3. ______________ utility is the utility derived from the last
unit of a commodity consumed.

Average

Total

Marginal

Zero

4. Marshall assumes __________________ measurement of
utility.

statistical

cardinal
multiple

correct



5. Blood donation has _______________ utility.

place

time

knowledge
form

6. A rational consumer wants ______________ satisfaction.

adequate

maximum

flexible

different

7. Utility depends on the ______________ of want.

intensity

quality

novelty

uniformity

8. ________________ utility is the sum of all the marginal
utilities from the consumption of a commodity.

Total

Marginal

Form

Time

9. Warehouses create ____________ utility

place

service

form

time

10. When MU is _______________, TU decreases.

positive

negative

zero


high

11. _______is the power of commodity to fulfil human wants
(utility, usefulness, productivity, unproducivity)

12. the utility derived from all units of the given commodity is
called _______(average utility, marginal utility,place utility,
total utility)



1. A rational Consumer wants ________________ Satisfaction.
2. Utility depends on the __________________ of the want.
3. Marshall assumes ____________________ measurement or utility.
4. _______________Utility is the sum of all the marginal utilities from the consumption of a
commodity.
5. The utility from an extra unit of consumption is called ______________ utility.
6. When Total utility falls, the marginal utility becomes___________________.
7. The Marginal utility tends to diminish with the ___________________ in the units of
consumption of a commodity.
8. When Marginal Utility is zero, the total utility will be the ________________.
9. The demand for labour is ____________demand.
10. The demand for electricity for domestic purpose is ____________demand.
11.

Chapter 3- very imp
Demand analysis

1. The demand for ___________ is highly inelastic.

perfumes

gold

medicines

diamond

2. The demand for salt is __________

elastic

inelastic

zero

maximum

3. The elasticity of demand of pins is ___________

elastic

inelastic

zero

maximum

4. A desire backed by ability to pay and willingness to
pay for a commodity is called.

supply

purchasing power

perfect desire

demand

5. When the price of petrol goes up, demand of car will
_____________

rise

fall

becomes zero

remain unchanged

6. Individual demand is an aggregate of purchasing by
____________ buyer(s).

all

some

one

two

7. Market demand is an aggregate of purchasing by
___________ buyer(s).

one

two

all

some

8. Implicit demand is also known as ______________

derived

direct

composite

joint

9. Indirect demand is also known as ___________
demand.

direct

composite

joint

derived.

10. The demand for consumer goods is _____________
demand

derived

implicit

direct

indirect

11. The law of demand is applicable to
__________________ goods.

Giffen

prestige

inferior

normal

12. When less is purchased at the constant prices, it is
called _____________ in demand.

decrease

increase

expansion

contraction

13. When price of commodity rises, the demand for it
______________

falls

remains constant

becomes negative

becomes positive




14. Income elasticity of demand for inferior goods is
______________

positive

negative

zero

greater than one




15. The slope of demand curve is __________ in the
case of inelastic demand.

flatter

steeper

horizontal

vertical

16. Cross elasticity of demand is applicable to
________________ goods.

prestige

substitute

inferior

superior




17. Perfectly elastic demand curve is _____________

horizontal to OX axis

Horizontal to OY axis

Passes through the origin.

Steeper




18. If a commodity has many substitutes, then its
demand becomes __________

more elastic

less elastic

unitary elastic

perfectly elastic.




19. As price falls, demand ___________

increases

decreases

contracts

expands.

20. The Law of demand is based on the law of
______________

supply

Diminishing Marginal Utility

Newton's Law of gravitational force

Einstein's E = mc
2
.

21. In the case of Giffen goods the income elasticity of
demand is _____________

positive

negative

zero

infinite

22. In case of normal goods the income elasticity of
demand is ____________

positive

negative

zero


infinite

23.Individual demand is the purchasing by _______
buyers. (Some, All,One, Two)

24. ________ demand curve is parallel to Y - axis.
(Inelastic, Elastic,Perfectly Inelastic, Perfectly Elastic)


25. The demand for luxury goods is ________
(elastic, inelastic, unitary, perfectly elastic)

26. The marginal utility of money can never be
________ (zero, falling, constant, average)

27. The law of demand states________realtionship
between demand and price.
(direct,total,inverse,positive)

28. the law of equi-marginal utility is based on the law of
________ (demand, Diminishing Marginal Utility,
supply, consumption)

29. The demand for habitual commodity is _______
(more elastic demand, less elastic demand, zero elastic
demand, unitary elastic demand)

30. If the price of the inferior goods falls, the demand for
them ______
(increase/ decrease/remain constant/become zero)

31. Demand elasticity can be measured from demand curve by
______method( Total outlay/ percentage/ geometric/
mathematical)

12. The law of demand is based on the concept of ________________.
13. The Law of DMU is not applicable for ________________.
14. Producing Sugar from sugarcane is an example of _________________.
15. The law of DMU is useful for ________________.
16. A desire backed by ability to buy and willingness to pay for a commodity is called_________.
17. The law of demand is based on the Law of _______________.
18. Other thing remaining constant, when the price of a product increases, the demand for it_____.
19. The relationship between the price and demand is ______________.
20. The normal demand curve slopes ________________.
21. Electricity has Composite demand.
22. Salt has _________________ demand.
23. The demand for necessities is _______________ demand.
24. ______________ Demand curve is parallel to Y-axis.
25. Demand for Pin is ________________.
The demand for Luxuries is _______________.