in Business & Finance

Economics Quiz-5

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I have been making a valiant attempt to get you to see the world around you in terms of what is structured and written in economic theory. This is done without involving you way too much in economics jargon and terminology. In fact, most economics found in practice is what is theorized in books and artcles. It is the jargon and methodology adapted that frightens you. Here is the latest edition of your reality check in economics:

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  • Question of

    What is an indifference curve?

    • A curve plotting all points which give equal satisfaction or utility to a consumer
    • A curve of any shape
    • A curve to which a consumer is indifferent
    • A curve which meets X axis at infinity
  • Question of

    An indifference curve is _________ to origin

    • Convex
    • moves to right
    • Touches the origin
    • mirrors opposite side
  • Question of

    A budget line shows

    • All possible combinations of two goods which your disposable income can buy
    • which defines your budget
    • Which sets your budget
    • End point of your budget
  • Question of

    Consumer is in equilibrium at the point of ________ of budget line with an indifference curve

    • Tangency
    • Intersection
    • convexity of indifference curve
    • diagonal bisection
  • Question of

    With higher disposable income you can derive higher satisfaction

    • Yes
    • No
  • Question of

    You can choose any point on an indifference curve then why choose only the one at which budget line is tangent to indifference curve?

    • It maximizes satisfaction given your budget
    • others choose it
    • it seems to be right point
    • economists recommend it
  • Question of

    Can indifference curve fall in any negative quadrant?

    • Yes
    • No
  • Question of

    Are the goods on an indifference curve infinitely divisible?

    • Yes
    • No
  • Question of

    What is meant by strong monotonicity in indifference curve analysis?

    • more is better
    • less is better
    • more is avoided
    • less is avoided
  • Question of

    Can indifference curves be straight lines?

    • Yes
    • No

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budget linesconsumer preferencesConsumerseconomicsindifference curvesmicro economicsutility analysis

Written by Glower4

Glower is a writer cum poet who is a commoner endowed with uncanny gift of extreme and deep abstract thought resulting in astonishing written word.

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