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Question Practice

If a utility-maximizing consumer is given a cash subsidy, what is expected to happen?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Microeconomics
Theory Of Consumer Behaviour
Question Bank

If a utility-maximizing consum...

Single Answer MCQ
Q-00089333

If a utility-maximizing consumer is given a cash subsidy, what is expected to happen?

1

The budget line becomes steeper

2

The consumer will buy less of normal goods

3

The budget line shifts outward

4

The consumer's optimum choice remains unchanged

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Q1.

What does the law of diminishing marginal utility state?

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Q2.

If a consumer prefers more of a good as long as its marginal utility is positive, what will they do?

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Q3.

Which of the following best describes an indifference curve?

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Q4.

What shapes the typically convex shape of an indifference curve?

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