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Suppose that there are two goods, X and Y, facing a consumer. The prices are P<sub>x</sub> = Rs. 4 and P<sub>y</sub> = Rs. 5. He has Rs. 110 to spend on these goods. Suppose, he is currently buying 15 units of good X (with marginal utility equal to 40) and 10 units of good Y (with marginal utility equal to 45).<br>In the above context, which one of the following statements is correct?

Correct Answer: His total utility is being maximized subject to the budget constraint he is facing

Which of the following are not the assumptions related to the theory of consumer behaviour as per the cardinal utility approach?
1. Rational consumer
2. Unlimited money income
3. Utility cardinally measurable
4. Diminishing marginal utility of money
5. Constant marginal utility of commodities
6. Maximisation of satisfaction
7. Utility is additive

Use the following passage for the questions based on it. There are 6 flats on a floor in two rows. Out of these, three are north facing and the other three are south facing flats. The flats are to be allotted amongst Arun, Biswajyot, Chitra, Derek, Evan, and Fatima. Biswajyot gets a north facing flat and is not next to Derek. Derek and Fatima get diagonally opposite flats. Chitra is next to Fatima, and gets a south facing flat.Evan gets a north facing flat. Which of the following combination gets south facing flats?

Use the following passage for the questions based on it. There are 6 flats on a floor in two rows. Out of these, three are north facing and the other three are south facing flats. The flats are to be allotted amongst Arun, Biswajyot, Chitra, Derek, Evan, and Fatima. Biswajyot gets a north facing flat and is not next to Derek. Derek and Fatima get diagonally opposite flats. Chitra is next to Fatima, and gets a south facing flat.Evan gets a north facing flat. Which of the following pairs is exactly opposite to each other?

Use the following passage for the questions based on it. There are 6 flats on a floor in two rows. Out of these, three are north facing and the other three are south facing flats. The flats are to be allotted amongst Arun, Biswajyot, Chitra, Derek, Evan, and Fatima. Biswajyot gets a north facing flat and is not next to Derek. Derek and Fatima get diagonally opposite flats. Chitra is next to Fatima, and gets a south facing flat.Evan gets a north facing flat. Except Derek and Fatima, which other pair is diagonally opposite to each other?

When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer :

I. The Government has reduced the prices of petroleum products by five percent a week after increasing the prices by ten percent.
II. The rate of inflation dropped marginally during the last week.

Statements followed by some conclusions are given below. Statements : 1. Demand and supply determine the prices of goods and services. 2. When there are too many buyers, prices are pushed up and too many sellers push down prices. Conclusions : I. Buyers and sellers determine the prices. II. Price discovery is market driven. Find which of the given conclusions logically follows from the given statements.

Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer : I. The prices of petrol and diesel in the domestic market have remained unchanged for the past few months. II. The crude oil prices in the international market have gone up substantially in the last few month.

Cardinal utility analysis of consumer's behaviour is based on which combination of the following assumptions:
I. Utility is measurable is terms of cardinal numbers
II. Constancy of the marginal utility of money
III. Utilities of different goods are interdependent
IV. Gossen's first law of consumption
Choose the correct answer

Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer :

I. The prices of food grains and other essential commodities in the open market have risen sharply during the past three months.
II. The political party in opposition has given a call for general strike to protest against the government's economic policy.