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

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

A

1, 3, 5 and 7

B

2, 4 and 5

C

1, 3, 4 and 5

D

Both 6 and 7

Shopping goods have which of the following features?
I. These products are generally durable in nature
II. Consumers generally compare the goods of various sellers and the buy such goods
III. Per unit price of these goods is generally high
IV. These goods are regularly and continuously in demand
V. These goods are sold as a result of aggressive promotional efforts
Choose the right answer from the options given below:

A

III, IV and V

B

I, II and III

C

II, III and IV

D

I, III and V

Which of the following statements are correct?
1. According to Erikson, the part of the body on which their attention is focused and the life tasks which preoccupy them, change radically from one stage to another.
2. A key word to describe children's thought by Piaget is 'unsystematic'.
3. Preoperational children tend to focus their attention only on the most compelling aspect of an event.
4. Perceptual constancy appears easily in infancy, but object, constancy develops relatively slow.
Select the correct answer

A

1 and 4

B

1, 2 and 3

C

1 and 2

D

All of these

Suppose that there are two goods, X and Y, facing a consumer. The prices are P_x = Rs. 4 and P_y = 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).
In the above context, which one of the following statements is correct?

A

His total utility will increase if he reallocates his spending towards more of good X and less of good Y

B

His total utility will increase if he spends more on good Y and less on good X

C

His total utility will increase if he spends less on both the goods

D

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

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.

A

Both 1 and 2

B

Only 3

C

Only 1

D

Only 2

Ordinal utility analysis of the consumer's behaviour is considered superior to the cardinal utility analysis mainly due to

A

assumption of the rationality of the consumer's behaviour

B

possibility of the derivation of the consumer's demand

C

bifurcation of price effects into income and substitution effects

D

consideration of the available limited resources for satisfying consumer's demand

Read the passage carefully and select the best answer to each question out of the given four alternatives.
What is Gandhian philosophy? It is the religious and social ideas adopted and developed by Gandhi, first during his period in South Africa from 1893 to 1914, and later of course in India. These ideas have been further developed by later "Gandhians", most notably, in India by, Vinoba Bhave and Jayaprakash Narayan. Outside of India some of the work of, for example, Martin Luther King Jr. can also be viewed in this light. Understanding the universe to be an organic whole, the philosophy exists on several planes - the spiritual or religious, moral, political, economic, social, individual and collective. The spiritual or religious element, and God, is at its core. Human nature is regarded as fundamentally virtuous. All individuals are believed to be capable of high moral development, and of reform. The twin cardinal principles of Gandhi's thought are truth and nonviolence. It should be remembered that the English word "truth" is an imperfect translation of the Sanskrit, "satya", and "non-violence", an even more imperfect translation of "ahimsa". Derived from "sat" - "that which exists" - "satya" contains a dimension of meaning not usually associated by English speakers with the word "truth". There are other variations, too, which we need not go into here. For Gandhi, truth is the relative truth of truthfulness in word and deed, and the absolute truth - the Ultimate Reality. This ultimate truth is God (as God is also Truth) and morality - the moral laws and code - its basis. Ahimsa, far from meaning mere peacefulness or the absence of overt violence, is understood by Gandhi to denote active love - the pole opposite of violence, or "Himsa", in every sense. The ultimate station Gandhi assigns non violence stems from two main points. First, if according to the Divine Reality all life is one, then all violence committed towards another is violence towards oneself, towards the collective, whole self, and thus "self"-destructive and counter to the universal law of life, which is love. Second, Gandhi believed that ahimsa is the most powerful force in existence. Had himsa been superior to ahimsa, humankind would long ago have succeeded in destroying itself. The human race certainly could not have progressed as far as it has, even if universal justice remains far off the horizon. From both viewpoints, non violence or love is regarded as the highest law of humankind.
What are the twin cardinal principles of Gandhis thought?

A

spiritualty and morality

B

truth and non violence

C

ethics and social responsibility

D

Individual and collective sharing

Which of the following statements are true?
1. Marginal costing is not an independent system of costing.
2. In marginal costing, all fundamentals of cost are divided into fixed and variable components.
3. In marginal costing, fixed costs are treated as product cost.
4. Marginal costing is not a technique of cost analysis.

A

Both 4 and 1

B

Both 2 and 3

C

Both 1 and 2

D

Both 2 and 4

Market demand for any goods is a function of the
1. price per unit of the goods
2. price per unit of other goods
3. incomes of consumers
4. tastes of consumers
Select the correct answer

A

Only 1

B

Both 1 and 3

C

Both 3 and 4

D

All of the above

Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer

A

Both 1 and 4

B

Both 3 and 4

C

Both 3 and 1

D

Only 1