assap tutors explain the answer please

39. The income effect for a commodity is (a) Is always positive (b) Is always negative (c) Depends upon price effect (d) Determines the nature of the commodity 40. The substitution effect for a commodity is (a) Is always positive (b) Depends upon the nature of the commodity (c) Depends upon price effect (d) Sometimes negative and sometimes positive 41. Which method is used by Hicks to eliminate the income effect when price of a product is changed (a) Compensating variation in income (b) The cost difference (c) The over compensation effect (d) Substituting variation in price 42. Which of the following statements is true (a) Hicksian substitution effect is greater than Slutsky substitution effect (b) Slutsky substitution effect is greater than Hicksian substitution effect (c) Hicksian substitution effect is same and equal to Slutsky substitution effect (d) Hicksian substitution effect is the reverse of slusky substitution effect 43. According to Hicks substitution effect is (a) The movement to a higher indifference curve (b) The movement to a lower indifference curve (c) The movement along an indifference curve (d) The movement to a decreased consumption(a) Always true (b) Always false (c) Sometimes true and sometimes false (d) True only if price effect is positive 34. As per indifference curve analysis, consumer always try to reach (a) Higher indifference (b) Lower indifference curve (c) Middle indifference curve (d) Lower income price line 35. As per indifference curve analysis consumer equilibrium is attained when (a) Slope of indifference curve is constant (b) Slopes of both indifference curve and income price line are equal (c) Slopes of both indifference curve and income price line are opposite (d) Both income price line and indifference curve are parallel. 36. The slope of a budget line is (a) The satisfaction level of both the commodities (b) The income level of the consumer (c) The price ratio of both the commodities under consideration (d) Price level of a country 37. At the point of tangency the slope of indifference curve is (a) Differ from point to point (b) Is equal on the other side of the mid point (c) Is the same (d) Is increasing 38. The slope of a budget line throughout its length is (a) The satisfaction level of both the commodities (b) The income level of the consumer (c) The price ratio of both the commodities under consideration (d) Price level of a country(c) Negative income effect (d) Positive Marshallian effects 28. Indifference curves are (a) Always parallel (b) May be parallel (c) May not be parallel (d) Both b and c 29. Revealed preference theory assumes (a) Weak ordering (b) Strong ordering (c) Constant ordering (d) Multiple ordering 30. Hicks Allen indifference theory is based on (a) Weak ordering (b) Strong ordering (c) Constant ordering (d) Multiple ordering 31. Income consumption curve of an inferior commodity is (a) Positively sloped (b) Backward bending (c) Downward slopping straight line (d) Showing constant income effect 32. In case of a convex indifference curve (a) MRS xy is constant (b) MRS xy is increasing (c) MRS xy is negligible (d) MRS xy is diminishing 33. 'Higher the indifference curve higher will be level of satisfaction'. The statement is(d) Applies on all commodities except money 22. An indifference curve represent (a) Four commodities (b) Less than two commodities (c) Only two commodities (d) Only one commodity 23. Indifference curve is always (a) Concave to the origin (b) Convex to the oringin (c) L shaped (d) A straight line 24. Engel curve for giffen good is (a) Positively sloped (b) Negatively sloped (c) Horizontal straight line (d) Vertical straight line 25. Price effect is (a) Income effect - substitution effect (b) Substitution effect - income effect (c) Income effect + substitution effect (d) Income effect + substitution effect- negative effects 26. For a giffen good, when price falls (a) Demand increases at a faster rate (b) Demand decreases (c) Demand remains constant (d) Demand curve has a negative slope 27. Inferior goods are the goods with (a) Falling Income effect (b) Rising Income effect(a) A fall in price of the commodity (b) A fall in income of the consumer (c) A rise in price of the substitute (d) None of these 18. When price of a product falls, more of it is purchased because of (a) The substitution effect (b) The income effect (c) Neither substitution effect nor income effect (d) Both the substitution and income effects. 19. "Utility or satisfaction is a subjective concept; therefore it could only be ranked". The statement supports (a) Cardinal utility theorist (b) Ordinal utility theorist (c) Behavioral theorist of the firm (d) None of the above 20. The basic doctrine of consumers surplus is based on (a) Indifference curve analysis (b) Revealed preference theory (c) Law of substitution (d) Law of diminishing marginal utility 21. According to Marshall, The law of diminishing marginal utility (a) Applies on money in the manner in which it applies on commodity (b) Do not applies on money except bank money (c) Does not applies on bank money but applies on cash5. Total utility curve (a) Always rises (b) First falls then rises (c) Always falls (d) First rises and then falls after reaching its maximum 6. Total utility is maximum when (a) Marginal utility is zero (b) Marginal utility is maximum (c) Marginal utility increases (d) Average utility is maximum 7. Marginal utility is (a) Always zero (b) Increases at a diminishing rate (c) The utility derived from last unit (d) All the above 8. Total utility is (a) The sum total of marginal utilities (b) Entire utility derived from whole consumption (c) Increases at a diminishing rate (d) All the above 9. When Total utility is increasing at an decreasing rate, marginal utility is (a) Constant (b) Negative (c) Increasing (d) Decreasing 10. Which of the following is called gossans first law (a) Law of substitution (b) Law of equi marginal utility (c) Law of diminishing marginal utilityMULTIPLE CHOICE QUESTIONS,MULTIPLE CHOICE QUESTIONS 1. The concept of utility was introduced by (a) Marshall (b) Hicks and allen (c) Geremy Bentham (d) Gossen 2. Cardinal utility analysis to consumer equilibrium was developed by (a) Marshall (b) Hicks and Allen (c) Geremy Bentham (d) Gossen 3. Ordinal utility analysis is otherwise known as (a) Gossens second law (b) Cardinality approach (c) Indifference curve analysis (d) Rationality approach 4. Ordinal utility analysis Was developed by (a) J.R. Hicks & R.J.D. Allen (b) Samualson (c) Marshall and Jevons (d) Slutsky 5. Total utility curve (a) Always rises (b) First falls then rises (c) Always falls (d) First rises and then falls after reaching its maximum