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If two households have identical preferences but different incomes then:

A. They must consume the same amounts of all goods

B. The wealthier one will have lower marginal utility for most goods

C. The wealthier one will have higher marginal utility for most goods

D. They will enjoy the same level of utility

Correct Answer : B.


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  1. Total variable cost curve:
  2. To get more revenue, a Finance Minister impose tax on that commodity which has:
  3. The central problem of economics is:
  4. Production is a function of:
  5. When a competitive firm is in equilibrium in the long-run, its output is such that:
  6. If the commodities X and Y are perfect complements then:
  7. The MC curve cuts the AVC and ATC curves:
  8. Price elasticity of demand can be measured in the following way:
  9. In economist the term invisible hand is refers to:
  10. Now-a-days in real life, we are unable to fined:
  11. Excess capacity is not found under:
  12. When the law of demand operates the demand curve:
  13. The main contribution of David Ricardo is in the field of:
  14. Cournot equilibrium is attained where two reaction curves:
  15. If Marginal Utility (MU) is zero, then total utility is:
  16. If price exceeds AVC but in smaller than AC at the best level of output, the firm is:
  17. Supply of commodity is a:
  18. The market demand for any commodity is the:
  19. A mixed economy is characterized by the coexistence of:
  20. Marginal revenue from a given output:
  21. Total fixed costs are:
  22. Cross-demand curve shows:
  23. The vertical demand curve for a commodity shows that its demand is:
  24. Total costs are:
  25. Market demand curve is:
  26. Cartel is associated with:
  27. Technological efficiency:
  28. The average fixed cost (AFC) curve is asymptote to:
  29. Other things remaining the same, when a consumers income increases his equilibrium point moves to:
  30. The demand curve of a firm in monopolistic competition is: