Question : The indifference curve's slope is calculated using:

 

Option 1: Marginal Rate of Substitution

Option 2: Marginal Opportunity Cost

Option 3: Marginal Rate of Transformation

Option 4: None of these

Question : Marginal rate of exchange also denotes:

Option 1: Slope of Demand Curve

Option 2: Slope of budget line 

Option 3: Slope of IC Curve

Option 4: None of the above

Question : Which of the following cost curve is never  'U' shaped?

Option 1: Marginal cost curve .

Option 2: Average variable cost curve .

Option 3: Average fixed cost curve .

Option 4: Average cost curve 

Question : ______shows a variety of combinations of these two products that provide the same level of satisfaction:-

Option 1: Indifference curve

Option 2: ISO quant

Option 3: Marginal utility curve

Option 4: ISO cost curve

Question : A consumer will not be in equilibrium when according to the indifference curve and price line.

Option 1: The price of retroactive items and the marginal utility ratio is the same.

Option 2: The ratio of marginal utilities of the two goods is equal to the ratio of their respective prices.

Option 3: The prices of the two items are equal, as is the marginal rate of substitution.

Option 4: Substitution's marginal rate is declining.

Question : Statement 1: An individual's indifference curve is concave to the origin.

Statement 2: The concavity of indifference curves reflects the diminishing marginal rate of substitution.

Option 1: Statement 1 is true, and statement 2 is false.

Option 2: Statement 1 is false, and statement 2 is true.

Option 3: Both statement 1 and statement 2 are true.

Option 4: Both statement 1 and statement 2 are false.