Economics Practice MCQ Page 1
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: 921 Moving along the budget line leaves the consumer
- better off
- worse off.
- neither better nor worse off.
- either better or worse off but one cannot tell which without more information.
- in equilibrium.
Question: 931 Moving along an indifference curve leaves the consumer
- better of
- worse off
- neither better nor worse off
- either better or worse off but one cannot tell which without more information
- in equilibrium
Question: 1027 At every level of consumption, the marginal rate of substitution tells
- which indifference curve the consumer is on.
- how much of one good the consumer can exchange for another in the market.
- what the price of the goods are.
- how much the consumer wants to buy of each goods.
- how much of one goods the consumer is willing sacrifice to obtain one of the other.
Question: 1028 An increase in the consumers income causes
- the budget line to get steeper.
- the budget line to shift parallel to the right.
- the indifference curves to shift up.
- the budget line to get flatter.
- the indifference curves to get flatter.
Question: 1029 An increase in the price of the good measured on the horizontal axis causes
- the budget line to get steeper.
- the budget line to shift parallel to the right.
- the indifference curves to shift up.
- the budget line to get flatter.
- the indifference curves to get flatter.
Question: 1033 In equilibrium the consumer is not
- on the highest indifference curve attainable with his income.
- achieving his existing level of utility at the cheapest possible cost.
- spending all of his income.
- maximizing his utility given his income.
- on his highest indifference curve.
Question: 1034 indifference curves reflect
- preferences.
- income.
- prices.
- both income and prices.
- consumption.
Question: 1037 If a households income is $900, the price of compact discs (on the vertical axis)is $15, and the price of cassette tapes (on the horizontal axis)is $10, then the budget line intersects the vertical axis at a value of
- 900.
- 15.
- 60.
- 00.
- an indeterminate magnitude based on the data given.
Question: 1087 For which of the following would households’ preferences be most stable over time?
- Hamburgers
- Big mace
- Beef
- Meat
- food
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
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
921 . D
931 . C
1027 . E
1028 . B
1029 . A
1033 . E
1034 . A
1037 . C
1087 . E
1090 . E
1092 . A
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MCQ for Practicing Subject Tests