511. Consumer surplus is the difference between:
A) Amount consumer is willing to pay minus amount actually paid by the consumer
B) Amount consumer actually paid minus the amount consumer is willing to pay
C) Amount consumer actually paid minus the amount charged by the seller
D) Amount consumer is willing to pay minus the amount producer is wanting
512. If consumption of the good is not continuous or there are varieties in the good then which law withholds:
A) Law of diminishing marginal utility
B) Law of increasing marginal utility
C) Law of diminishing returns
D) Law of constant returns
513. MU of the commodity when no commodity is consumed is:
A) Constant
B) Maximum
C) Falling
D) Rising
514. As the consumer has more units of a commodity, his total utility from the commodity:
A) Increases less than in proportion, reaches a maximum and then falls
B) Increases less than in proportion and then falls
C) Increases more than in proportion and then reaches a maximum
D) Falls, becomes zero and then negative
515. In Marginal utility theory, utility is a:
A) Cardinal concept
B) Ordinal concept
C) Both of the above
D) None of the above
516. In Marginal utility theory, marginal utility of money is:
A) Constant
B) Rising
C) Decreasing
D) Rises and then falls
517. When the percentage change in quantity demanded is less than the percentage change in price, the demand curve is:
A) Steeper
B) Flatter
C) Rectangular
D) Horizontal
518. When income elasticity of demand is equal to zero, then the good is:
A) Necessity
B) Luxury
C) Poor quality necessity
D) Inferior good
519. Research simply means a search for:
A) Problems
B) Facts
C) Results
D) Topics
520. Research may be made through either arbitrary method or:
A) Rational method
B) Scientific method
C) Imagination method
D) Vague method
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