Lecture 15 Self evaluation :

1)  Each question carries 1 mark.

2) There are five alternatives - (A), (B), (C), (D), (E) given against each question out of which only one is the most appropriate answer. If (A) is correct, round on the correct alternative like (A) .

3) If a question is answered wrongly or more than one answers are marked, 0.20 marks will be deducted for each such question.

Q.1 Utilitarianism led to new tendencies in economics:

(A)   Economists were prompted to pay attention to individual choices and behavior

(B)   Economists started asking only relevant questions

(C)   Their attention was drawn towards the inadequacies of objective measures of welfare

(D)  None of the above

Q.2 Utilitarians asked the following question(s):

(A)   How can utility be measured?

(B)   Is there a distinction between use value and exchange value?

(C)   What is the relationship between total utility and exchange value?

(D)   All of the above

Q.3 Cardinal concept of utility suggests that utility of economic goods can be measured on:

(A)    A nominal scale

(B)   An ordinal scale

(C)    An interval scale

(D)   A ratio scale

Q.4 Those who used the cardinal concept can further be divided into following groups:

(A)   Those who believe that utility is a psychic reality that can be measured directly but which cannot be inferred from external facts of behaviour

(B)   Those who believe that utility has no relevance for human behaviour

(C)   Those who believe that utility can be measured indirectly from “the sum of money a man is prepared to give up in order to obtain it rather than go without it”

(D)   Utility is the only basis of human behaviour and therefore to understand human behaviour utility of social norms and values must be explored

Q.5 Indifference curves are drawn by joining the values of two goods B and A:

(A)   Which are most expensive

(B)   Which are cheapest

(C)   To which consumers are indifferent

(D)   None of the above