MCQ Questions for Class 11 Economics Chapter 5 Market Equilibrium with Answers

Here you will find NCERT MCQ Questions for Class 11 Economics with Answers PDF Free Download based on the important concepts and topics given in the textbook as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 11 Economics. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.


Q1. After reaching the saturation point, consumption of additional units of the commodity cause:

A)Total utility to fall and marginal utility to increase.
B)Total utility and marginal utility both to increase.
C)Total utility to fall and marginal utility to become negative.
D)Total utility to become negative and marginal utility to fall.

C)Total utility to fall and marginal utility to become negative.


Q2. Marginal utility approach to demand was given by ____________________________.

A)J.R. Hicks
B)Alfred Marshall
C)Robbins
D)AC Pigou

B)Alfred Marshall


Q3. Which one of the following assumptions is not necessary for the cardinal utility theory?

A)Rationality of the consumer
B)Constant marginal utility of money
C)Perfectly competitive market
D)Additivity of utility

C)Perfectly competitive market


Q4. Law of diminishing marginal utility may not apply to-

A)Money
B)Butter
C)Pepsi, Coke, etc.
D)Ice cream

A)Money


Q5. The law of equi marginal utility considers price of money as:

A)Zero
B)less than one
C)more than one
D)one

D)one


Q6. When economists speak of the utility of a certain good, they are referring to:

A)the demand for the good
B)the usefulness of the good in consumption
C)the satisfaction gained from consuming the good
D)the rate at which consumers are willing to exchange one good for another

C)the satisfaction gained from consuming the good


Q7. Suppose that the price of a new bicycle is ₹ 200. Natalie values a new bicycle at ₹400. What is the value of total consumer surplus if Natalie buys a new bike?

A)₹500
B)₹300
C)₹200
D)₹400

C)₹200


Q8. The difference between the price a consumer is willing to pay and the price he actually pays is called-

A)Excess Price
B)Excess Demand
C)Consumer Surplus
D)Exploitation

C)Consumer Surplus


Q9. The satisfaction which a consumer derives in the consumption of a commodity is equal to ₹ 320. The price of that commodity is ₹180. What will be his consumer surplus?

A)₹180
B)₹200
C)₹140
D)₹500

C)₹140


Q10. The aim of the consumer in allocating his income is to –

A)maximize his total utility
B)maximize his marginal utility
C)to buy the goods he wants most whatever the price
D)to buy the goods which he expects to be short in supply

A)maximize his total utility


Q11. Minimum support price of wheat is called:

(a) Price ceiling
(b) Price floor
(c) Market price
(d) Equilibrium price.

(b) Price floor


Q12. Which of the following is the component of instrument pricing:

(a) Rent
(b) Wages
(c) Interest
(d) None of these.

(c) Interest


Q13. Which factors help in the determination of equilibrium price:

(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above.

(d) None of the above.


Q14. Which among the following statement is not true:

(a) Demand of labor is done by the producer
(b) Demand of labor depends open its productivity
(c) Marginal productivity of a labor is his maximum wages
(d) All of the above.

(d) All of the above.


Q15. Excess demand can be seen in:

(a) Fixed market price
(b) Lowest fixed price
(c) Highest fixed price
(d) None of these.

(c) Highest fixed price


Fill in the blanks:

Q16. The price on which demand and supply are equal, is called ………………..

Normal


Q17. Price discrimination is possible in ……………….. market.

Monopolistic


Q19. Increase in total revenue by the sale of additional unit of the commodity is called ………………..

Marginal revenue


Q19. If the supply of any good remains unchanged, and with the increase in demand its ……………….. increases.

Increase


Q20. In perfect competition market, a firm is a ………………..

Price takes


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Practicing NCERT Economics MCQs With Answers Pdf Class 11 is one of the best ways to prepare for the CBSE Class 11 board exam. There is no substitute for consistent practice whether one wants to understand a concept thoroughly or one wants to score better. If you have any queries regarding The CBSE Class 11 Economics MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

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