Class 12 Economics Chapter 2 Theory of Consumer Behaviour MCQ Questions with Answers

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Theory of Consumer Behaviour MCQ Questions for Class 12 Economics with Answers

Class 12 Economics MCQ with answers are given here for Chapter 2 Theory of Consumer Behaviour. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 Economics syllabus. By Solving these Class 12 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn Class 12 Theory of Consumer Behaviour MCQ with Answer according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE MCQ on Theory of Consumer Behaviour Class 12 PDF with answers given below.

Question 1. When marginal utility from the consumption of a commodity is zero, then the:
(a) Total utility is zero
(b) Total utility is highest
(c) Total utility is rising
(d) Total utility is falling

Question 2. When TU is maximum then MU is?
(a) Zero
(b) Negative
(c) Both 
(d) None.

Question 3. Marshallian utility analysis is known as ________.
(a) Cardinal
(b) Ordinal
(c) Classical
(d) Historical

Question 4. Which economist said that money is the measuring rod of utility?
(a) (a)C Pigou
(b) Alfred Marshall
(c) Adam Smith
(d) Robbins

Question 5. The law of equi marginal utility considers price of money as:
(a) Zero
(b) Less than one
(c) More than one
(d) One

Question 6. The reason that higher prices may not affect consumer buying is _______________.
(a) Most consumers prefer brand names which have higher prices
(b) 70% of the total population looks for quality services and is willing to pay higher prices
(c) Consumers believe that higher prices indicate higher quality or prestige 
(d) Most consumers feel that the price is actually affordable

Question 7. Secondary reference groups include ________________.
(a) Family and close friends
(b) Sports groups
(c) Ethnic and religious groups
(d) Fraternal organizations and professional associations.

Question 8. For the marketing manager, social class offers some insights into consumer behavior and is potentially useful as a ___________________.
(a) Market research information
(b) Market segmentation variable
(c) Source of understanding competition’s strategy
(d) Source to predict future trends

Question 9. Indifference curves never intersect each other due to:
(a) Different levels of satisfaction
(b) Same levels of satisfaction
(c) Convex to origin
(d) Concave to origin

Question 10. Indifference curves are
(a) Convex to Origin
(b) Concave
(c) Neither ‘a’ nor ‘b’
(d) None

Question 11. At equilibrium, the slope of the indifference curve is:
(a) Equal to the slope of budget line
(b) Greater than the slope of budget line
(c) Smaller than the slope of budget line
(d) None

Question 12. A book “The Nature and significance of Economic Science” is written by:
(a) Alfred Marshal
(b) Lionel Robbins
(c) Samuelson
(d) Adam Smith

Question 13. Health is not wealth because it has no:
(a) Scarcity
(b) Utility
(c) Marketability
(d) None of these

Question 14. Total utility is maximum when :
(a) Marginal utility is maximum
(b) Marginal utility is Zero
(c) Average utility is maximum
(d) Average utility is Zero

Question 15. In case of perfectly elastic demand, the value of Ed is:
(a) One
(b) Greater than one
(c) Less than one
(d) Infinite

Question 16. ———— is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket.
(a) Consumer behavior
(b) Consumer interest
(c) Consumer attitude
(d) Consumer perception

Question 17. The law of equi-marginal utility is otherwise called as:
(a) Law of substitution
(b) Law of diminishing MU
(c) Law of negative returns
(d) None of these

Question 18. In case of perfectly elastic demand, demand curve becomes:
(a) Horizontal
(b) Vertical
(c) Downward sloping
(d) None of these

Question 19. _____________ (is) are transmitted through three basic organizations: the family, religious organizations, and educational institutions; and in today’s society, educational institutions are playing an increasingly greater role in this regar(d)
(a) Consumer feedback
(b) Marketing information systems
(c) Market share estimates
(d) Cultural values.

Question 20. Marketing managers should adapt the marketing mix to ___________________ and constantly monitor value changes and differences in both domestic and global markets.
(a) Sales strategies
(b) Marketing concepts
(c) Cultural values
(d) Brand images.

Question 21. ________________ is one of the most basic influences on an individual’s needs, wants, and behaviour.
(a) Brand
(b) Culture
(c) Product
(d) Price

Question 22. Marketers are always trying to spot ____________ in order to discover new products that might be wante(d)
(a) opinion graphers
(b) dissonant groups
(c) cultural shifts
(d) benchmarks

Question 23. Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors are called__________
(a) Cultures.
(b) Subcultures.
(c) Social classes.
(d) Social factors.

Question 24. Which of the following is the most valuable piece of information for determining the social class of your best friend’s parents?
(a) The number of years schooling that they had
(b) Their ethnic backgrounds
(c) Their combined annual income
(d) Their occupations

Question 25. _________________ refers to the buying behavior of final consumers.
(a) Consumer buyer behavior.
(b) Target market buying
(c) Market segment buying
(d) Business buying behavior

Question 26. The starting point in understanding how consumers respond to various marketing efforts the company might use is the:
(a) Lipinski model of buying behavior.
(b) Stimulus-response model of buyer behavior.
(c) Freudian model of buying behavior.
(d) Maslow’s model of life-cycle changes.

Question 27. A ______________ is a person’s pattern of living as expressed in his or her activities, interests, and opinions.
(a) role
(b) status
(c) position
(d) lifestyle

Question 28. The basic premise of the _____________ is that people’s possessions contribute to and reflect their identities; that is, “we are what we have.”
(a) lifestyle concept
(b) self-concept
(c) personality concept
(d) cognitive concept

Question 29. Even though buying roles in the family change constantly, the ___________ has traditionally been the main purchasing agent for the family.
(a) Wife 
(b) husband
(c) teenage children
(d) grandparent

Question 30. ___________ puts people into a frame of mind of liking or disliking things, of moving toward or away from them.
(a) A rule
(b) An attitude.
(c) A belief
(d) A cue.

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Question 31. The stage in the buyer decision process in which the consumer is aroused to search for more information is called____________
(a) Information search.
(b) Evaluation of alternatives
(c) Search for needs
(d) Perceptual search.

Question 32. With respect to post purchase behavior, the larger the gap between expectations and performance:
(a) The greater likelihood of re-purchase.
(b) The greater the customer’s dissatisfaction.
(c) The less likely the consumer will be influenced by advertising
(d) The less likely the consumer will need sales confirmation and support.

Question 33. According to Maslow’s Hierarchy of Needs, the lowest order of needs are called:
(a) Self-actualization needs.
(b) Social needs.
(c) Safety needs.
(d) Physiological needs

Question 34. A ___________ is a strong internal stimulus that calls for action.
(a) Driv
(b) cue
(c) response
(d) perception

Question 35. The demand for necessaries is:
(a) Elastic
(b) Inelastic
(c) Unitary elastic
(d) Perfectly elastic

Question 36. All of the following are part of the adoption process that consumers may go through when considering an innovation EXCEPT:
(a) Awareness.
(b) Process.
(c) Interest.
(d) Trial.

Question 37. Several characteristics are especially important in influencing an innovation’s rate of adoption. _________ is the degree to which the innovation may be tried on a limited basis.
(a) Relative advantage
(b) Synchronization
(c) Compatibility
(d) Divisibility .

Question 38. The business marketer normally deals with _____________ than the consumer marketer does.
(a) far greater but smaller buyers
(b) far greater and larger buyers
(c) far fewer but far larger buyers
(d) far fewer and smaller buyers

Question 39. The place in the business buying behavior model where interpersonal and individual Influences might interact is called the__________
(a) Environment.
(b) Response.
(c) Stimuli.
(d) Buying center.

Question 40. In case of perfectly elastic, demand curve is:
(a) Vertical
(b) Horizontal
(c) Downward sloping
(d) None of these

Question 41. The demand for commodity on which a consumer spends more percentage of his income is:
(a) More elastic
(b) Less elastic
(c) Unity
(d) None of these

Question 42. An indifference curve is always:
(a) Concave to the origin
(b) Convex to the origin
(c) L-shaped
(d) A vertical straight line

Question 43. When a firm buys a product or service for the first time, it is facing a _____________
(a) Habitual re buy situation.
(b) Straight re buy situation.
(c) Modified re buy situation.
(d) New task situation.

Question 44. The stage of the business buying process where the buyer describes the characteristics and quantity of the needed item is called ___________
(a) Problem recognition.
(b) General need description.
(c) Product specification.
(d) Proposal solicitation.

Question 45. Consumer Surplus is based on which concept?
(a) Diminishing Marginal Utility
(b) Law of Demand
(c) Indifference curve Approach
(d) None

Question 46. What is the behaviour of TP, when MP becomes negative?
(a) TP increases at an increasing rate
(b) TP increases at diminishing rate
(c) TP is maximum
(d) TP decreases

Question 47. __________ measures the productivity of a factor input.
(a) Total product
(b) Average product
(c) Marginal product
(d) Returns to a factor 

Question 48. Factors such as supplier reputation for repair and servicing capabilities are important criteria for evaluation at which stage in the business buying process?
(a) problem recognition
(b) supplier search
(c) supplier selection
(d) order-routine specification.

Question 49. When the Average Product (AP) is maximum, the Marginal Product (MP) is:
(a) Equal to AP
(b) Less than AP
(c) More than AP
(d) Can be any one of the above 

Question 50. What is the behaviour of AP when TP increases at decreasing rate?
(a) AP increases
(b) AP decreases
(c) AP may increase or decrease
(d) AP is constant

Question 51. __________ refers to change in output when only one input is changed, other inputs remaining unchanged. 
(a) Total product
(b) Average product
(c) Marginal product
(d) Returns to a factor

Question 52. ____________ shows the pattern of change in total product when only one input is increased, other inputs remaining unchanged.
(a) Marginal product
(b) Average product
(c) Law of variable proportions
(d) Returns to a factor

Question 53. If AP of one unit of a variable factor is 12 units and that of 2 units of the variable factor is 16 units, then the marginal product of 2nd unit of the variable factor is __________ .
(a) 28 units
(b) 20 units
(c) 4 units
(d) 44 units

Question 54. ____________, at any particular level of employment of an input, is the average of all marginal products up to that level. 
(a) Total product
(b) Average product
(c) Marginal product
(d) Returns to a factor

Question 55. The marginal product curve in the input-output plane, looks like ____________ .
(a) a ‘U’ shaped curve
(b) an inverse ‘U’ shaped curve
(c) an inverse ‘S’ shaped curve
(d) an ‘S’ shaped curve

Question 56. The average product curve in the input-output plane, will be __________.
(a) an ‘S’ shaped curve
(b) an inverse ‘S’ shaped curve
(c) a ‘U’ shaped curve
(d) an inverse ‘U’ shaped curve   

Question 57. Which of the following statements accurately describe the relationship between AP and MP?
(a) AP rises when MP is above it and falls when MP is below it.
(b) MP intersects AP at its minimum point.
(c) AP an MP are always parallel to each other.
(d) AP is always rising when MP is falling and vice-versa.

Question 58. Both AP and MP curves are generally ___________ .
(a) U-shaped
(b) Inversely U-shaped
(c) Rising
(d) Falling

Question 59. When average product increases, the marginal product is:
(a) Less than average product
(b) Equal to the average product
(c) More than average product
(d) None of these

Question 60. What is the shape of TP curve when MP falls and becomes negative? 

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