Indifference Curve Analysis Part 1 Online Test

The slope of the Indifference Curve is always:
Vertical and parallel to Y-Axis
Horizontal and parallel to X-Axis
Upwards to the right
Downwards to the right
Downwards to the left
The Indifference Map shows various combinations of commodities X and Y yielding: I the same level of Expenditure II the same level of satisfaction III lower or higher level of satisfaction
I only
II only
III only
I and III
II and III
The different Indifferent Curves:
Cut each other in the beginning only
Cut each other towards the end
Always cut each other
Never cut each other
None of these
Which of these is NOT an assumption of the Indifference Curve Analysis? I Prices of the commodities remain the same II Full knowledge of the consumer III All commodities are Homogeneous and fully divisible
I only
II only
III only
All of these
None of these
The Marginal Rate of Substitution of X and Y is: I the amount of X which gives the same level of satisfaction as gained from the amount of Y II the amount of X whose loss can be compensated by a unit gain in Y III the amount of Y whose loss can be compensated by a unit gain in X
I only
II only
III only
I and III
I and III
An L shaped Indifference Curve implies that the two commodities are:
Perfect Substitutes
Perfect Complements
Not-Perfect Substitutes
Non- Perfect Complements
None of these
Under Indifference Curve Analysis, the consumer sets a scale of preference which is: I dependent on the level of Prices II independent of Prices III independent of Quantities
I only
II only
III only
I and III
II and III
If the Indifference Curves are Concave to the Origin, the Marginal Rate of Substitution is: I Increasing II Decreasing III Constant
I only
II only
III only
Any of these
None of these
Which of the following is not a valid assumption of the Indifference Curves?
Cardinal measure of Utility
Ordinal measure of Utility
Diminishing Marginal Utility of Money
Substitutability of commodities
None of these
In an Indifference Map, if the distance between two Indifferent Curves is equal, then it means:
The level of satisfaction is not determined by the position of the specific Indifference Curve
Both Indifference Curves have equal level of satisfaction
The higher Indifference Curve yields double satisfaction than the lower one
The lower Indifference Curve yields double satisfaction than the higher one
The lower Indifference Curve yields lesser satisfaction than the higher one
Description:

In Microeconomics, the Indifference Curve Analysis is an important approach to understanding Consumer Behavior. Here is a 7 minute short Revision test on Multiple Choice questions relating to Indifference Curves, Indifference Map, Marginal Rate of Substitution, Properties of Indifference Curves, Price Line and Consumer’s Equilibrium under the Consumption Function. This test is a must for any student of AP Microeconomics.

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EnglishteachersVinodita Sankhyan Namrata Arora
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