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2 D 32425-A

ECO 1B 01—MICRO ECONOMICS—I
(Multiple Choice Questions for SDE Candidates)

1. Total utility is maximum when:
(A) Marginal utility is zero. (B) Marginal utility is maximum.
(C) Marginal utility increases. (D) Average utility is maximum.

2. According to Marshall consumer surplus is:
(ಗಿ) Total utility - Marginal utility. (B) Total utility + Marginal utility.
(C) Total utility derived — Price. (D) Price— Marginal utiitiy.

3. Ifnegative income effect is less than positive substitution effect : the product will be :
(ಗಿ) Anormal good. (B) Aninferior good.
(C) A giffen good. (D) Acomplementary good.

4. Strong ordering means :
(൧) Absence of indifference.
(B) Presence of indifference.

(C) Nodifference between different combinations.

(D) None of the above.
5. The slope of a budget line is :

(൧) The satisfaction level of both the commodities.

(ம) The income level of the consumer.

(C) The price ratio of both the commodities under consideration.

(D) Price level of a country.
6. The income effect for a commodity is :

(൧) Is always positive. (B) Is always negative.

(C) Depends upon price effect. (D) Determines the nature of the commodity.
7. Inferior goods are the goods with :

(^) Falling income effect. (B) Rising income effect.

(C) Negativeincome effect. (D) Positive Marshallian effects.

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