CUET Economics - Micro - Consumer Behaviour | Free Questions - Page 4

Q1:

2025: 22 May Shift 1

Micro

>

Consumer Behaviour

Medium

The price of a commodity increases by 10%, its demand drops by 12%. What is the nature of price elasticity of demand?

Price Inelastic.

Price Elastic.

Unit Elastic.

Income elastic.

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2025: 22 May Shift 1

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A). The level of utility can be expressed in numbers.	(I). Total Utility
(B). The change in total utility due to consumption of one additional unit of a commodity.	(II). Ordinal Utility
(C). The total satisfaction derived from consuming the given amount of some commodity.	(III). Cardinal Utility
(D). The level of utility can be expressed in ranks.	(IV). Marginal Utility

Choose the correct answer from the options given below:

(A) - (I), (B) - (III), (C) - (IIII), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 4

Correct Answer

Explanation

Q3:

2025: 22 May Shift 1

Micro

>

Consumer Behaviour

Medium

Which of the following factor makes the demand curve to shifts leftward for a normal goods?

When the consumer's income increases.

Consumer's preferences change in favour of a good.

The price of goods decrease.

When the consumer's income decreases.

Correct Answer

Option 4

Correct Answer

Explanation

Q4:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A) Budget line	(I) $-\frac{p_1}{p_2}$
(B) Budget constraint	(II) Bundles available to the consumer
(C) Budget set	(III) $p_1X_1 + p_2X_2 = M$
(D) Slope of budget line	(IV) $p_1X_1 + p_2X_2 \leq M$

Choose the correct answer from the options given below:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (III), (B) - (II), (C) - (IV), (D) - (I)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Correct Answer

Option 4

Correct Answer

Explanation

Q5:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

Arun spends 200 rupees on good X irrespective of its price whereas Varun buys 10 units of Good X irrespective of its price. The respective values of the price elasticity of demand for Good X for both the consumers is

0 and 1 respectively.

1 and 0 respectively.

0 for both the consumers.

less than 1 for Arun and More than 1 for Varun.

Correct Answer

Option 2

Correct Answer

Explanation

Q6:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

The income of a consumer is spent by him on two goods X and Y. The marginal utility of the goods at the present level of consumption are equal to each other. However, the price of good X is double that of good Y. The consumer, in order to attain equilibrium, will

Increase the consumption of X and decrease the consumption of Y.

Increase the consumption of Y and decrease the consumption of X.

Increase the consumption of X without changing the consumption of Y.

Keep his consumption level constant as he is already operating at equilibrium.

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

Good X and Y are considered to be substitutes by a consumer. He is currently consuming good X. If the price of Good Y decreases, then arrange the following in correct sequence.

(A) Demand for Good X decreases.

(B) Consumer finds Good Y to be relatively cheaper than Good X.

(C) Demand curve for Good X shifts to the left.

(D) Consumer shifts from Good X to Good Y.

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(B), (D), (A), (C)

Correct Answer

Option 4

Correct Answer

Explanation

Q8:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A) Increase in consumers' income	(I) Budget line becomes flatter
(B) Decrease in price of good on X axis	(II) No change in the slope of budget line
(C) Equal increase in price of both good X and good Y	(III) Parallel and rightward shift in their budget line
(D) Decrease in Price of the good on Y axis	(IV) Budget line becomes steeper

Choose the correct answer from the options given below:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Correct Answer

Option 2

Correct Answer

Explanation

Q9:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

The equation of demand curve of a good for a consumer is given to be $p\times q = e$ where e is a constant. What will be the shape of the demand curve?

Parallel to x axis.

Parallel to y axis.

Downward sloping rectangular hyperbola.

Downward sloping straight line forming and angle of 135° with x axis.

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2025: 21 May Shift 1

Micro

>

Consumer Behaviour

Medium

In the cardinal utility analysis, the marginal utility of money is considered to be

Constant.

Decreasing.

Increasing.

First decreasing and then increasing.

Correct Answer

Option 1

Correct Answer

Explanation

Q11:

2025: 16 May Shift 1

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A) Increase in price of goods X	(I) Increase in demand for normal goods.
(B) Increase in income of consumers	(II) Demand is price inelastic
(C) Good X is a necessary good	(III) Unit elasticity of demand.
(D) Demand curve of Good X is a rectangular hyperbola	(IV) Contraction in demand for good X

Choose the correct answer from the options given below:

(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (IV), (B) - (I), (C) - (II), (D) - (III)

Correct Answer

Option 4

Correct Answer

Explanation

Q12:

2025: 16 May Shift 1

Micro

>

Consumer Behaviour

Easy

Individual demand for a good does not depend upon which of the following?

Affordability of the consumer.

Price of substitute good.

Tastes and preferences of the consumer.

Number of consumers

Correct Answer

Option 4

Correct Answer

Explanation

Q13:

2025: 16 May Shift 1

Micro

>

Consumer Behaviour

Easy

Two goods X and Y are such a combination that, when the price of good Y increases, the demand for good X increases,

How are goods X and Y related?

complementary goods

substitute goods

inferior goods

supplementary goods

Correct Answer

Option 2

Correct Answer

Explanation

Q14:

2025: 16 May Shift 1

Micro

>

Consumer Behaviour

Medium

"If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle". Such preferences are known as

Monotonic Preference.

Structured Preferences.

Sequential Preferences

Irregular Preferences.

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2025: 15 May Shift 1

Micro

>

Consumer Behaviour

Medium

Which of the following indicates a situation of consumer's equilibrium for a rational consumer consuming two goods?

The point at which the budget line just touches (is tangent to), one of the indifference curves.

The absolute value of the slope of the indifference curve (MRS) is greater than that of the budget line (price ratio) at that point.

A point below the budget line.

The point at which the consumer spends all his/her income and the budget line intersects one of the indifference curves.

Correct Answer

Option 1

Correct Answer

Explanation

Q16:

2025: 15 May Shift 1

Micro

>

Consumer Behaviour

Medium

Which of the following are true about indifference curves?

(A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction.

(B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution.

(C) Higher indifference curve gives greater level of utility.

(D) In the case of perfect substitutes, indifference curves are straight lines.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q17:

2025: 15 May Shift 1

Micro

>

Consumer Behaviour

Medium

Which of the following will NOT cause a change in the budget set of a consumer?

Change in quantities of goods purchased by the consumer.

Change in the prices of both the goods purchased by the consumer.

Change in the income of the consumer.

change in the price of any one of the two goods purchased by the consumer, price of the other good remaining same.

Correct Answer

Option 1

Correct Answer

Explanation

Q18:

2025: 15 May Shift 1

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A) Budget Set	(I) $-(P_1/P_2)$
(B) Slope of the budget line	(II) $M/P_1$
(C) Horizontal intercept of the budget line	(III) $P_1 X_1 + P_2 X_2 \le M$
(D) Vertical intercept of the budget line	(IV) $M/P_2$

Choose the correct answer from the options given below:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation

Q19:

2025: 15 May Shift 1

Micro

>

Consumer Behaviour

Easy

The total satisfaction derived from consuming the given amount of commodity X is known as _______

Marginal utility

Total utility

Average utility

Maximum utility

Correct Answer

Option 2

Correct Answer

Explanation

Q20:

2025: 14 May Shift 1

Micro

>

Consumer Behaviour

Medium

What causes an indifference curve to be convex to the origin?

Marginal utility
Market Rate of Exchange
Law of Diminishing Marginal Rate of Substitution
Law of Increasing Marginal Rate of Substitution

Marginal utility

Market Rate of Exchange

Law of Diminishing Marginal Rate of Substitution

Law of Increasing Marginal Rate of Substitution

Correct Answer

Option 3

Correct Answer

Explanation

Q21:

2025: 14 May Shift 1

Micro

>

Consumer Behaviour

Medium

Identify the correct statements with regard to the consumer's budget line/set.

(A) A decrease in the price of goods makes the budget line steeper

(B) A decrease in the price of goods makes the budget line flatter

(C) An increase in the price of goods makes the budget line steeper

(D) All bundles in the positive quadrant which are on or below the line are included in the budget set.

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q22:

2025: 14 May Shift 1

Micro

>

Consumer Behaviour

Medium

Arrange the following statements related to the change in demand for normal good.

(A) The consumer's income, increases.

(B) Given the prices of other goods and the preferences of the consumer,

(C) The demand curve shifts rightward.

(D) The demand for the normal good at given price changes.

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2025: 14 May Shift 1

Micro

>

Consumer Behaviour

Easy

With regard to price elasticity, in general, demand for a luxury good is likely to be ........

Inelastic
Unitary elastic
Perfectly Inelastic
Elastic

Inelastic

Unitary elastic

Perfectly Inelastic

Elastic

Correct Answer

Option 4

Correct Answer

Explanation

Q24:

2025: 14 May Shift 1

Micro

>

Consumer Behaviour

Medium

Suppose a consumer purchase 15 bananas when its price is Rs. 5 per banana. When the price increases to Rs. 7 per banana, consumer reduces his demand to 12 bananas. Price elasticity of demand would be...........

0.5
0.6
0.4
0.7

0.5

0.6

0.4

0.7

Correct Answer

Option 1

Correct Answer

Explanation

Q25:

2025: 13 May Shift 2

Micro

>

Consumer Behaviour

Medium

Which among the following are the features of the indifference curve?

(A) Indifference curve slopes downwards from left to right.

(B) Higher indifference curve gives greater level of utility.

(C) Indifference curve reflects negative utility.

(D) Two indifference curves never intersect each other.

Choose the correct answer from the options given below:

(A), (C) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (B) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q26:

2025: 13 May Shift 2

Micro

>

Consumer Behaviour

Medium

Identify the factors of price elasticity of demand.

(A) Nature of Goods.

(B) Availability of Substitution.

(C) Complementary Goods

(D) Cost of Goods.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B), and (C)

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation

Q27:

2025: 13 May Shift 2

Micro

>

Consumer Behaviour

Medium

Match List-I with List-II

List-I	List-II
(A) Satisfaction derived from consuming the given amount of some commodity x.	(I) Marginal rate of substitution.
(B) Change in total utility due to consumption of one additional unit of a commodity.	(II) Ordinal Utility
(C) Ranking of various consumption bundle.	(III) Marginal Utility
(D) Downward slope of indifference curve.	(IV) Total Utility

Choose the correct answer from the options given below:

(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 1

Correct Answer

Explanation

Q28:

2025: 13 May Shift 2

Micro

>

Consumer Behaviour

Easy

From which of the following, consumers can choose their consumption bundle?

Budget Line.

Budget Set.

Indifference Curve.

Marginal Rate of Substitution.

Correct Answer

Option 2

Correct Answer

Explanation

Q29:

2025: 13 May Shift 1

Micro

>

Consumer Behaviour

Easy

Budget Set is __________

Given the prices of the goods and the income of a consumer.

Any bundle as long as it costs less than or equal to the income

A set of price available to producer.

Set of bundles available to the consumer

Correct Answer

Option 4

Correct Answer

Explanation

Q30:

2025: 13 May Shift 1

Micro

>

Consumer Behaviour

Easy

The relation between the consumer's optimal choice of the quantity of a good and its price is called ?

Supply function

Demand Function

Cost Function

Output function

Correct Answer

Option 2

Correct Answer

Explanation

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