This Quiz is mainly about Revealed Preference Theory.
Revealed Preference Theory MCQs
- The Laspeyres price index measures the cost of purchasing
- Period 1 quantities at period 1 prices relative to base period prices
- Base period quantities at period 1 price relative to base period prices
- Base period quantities at base period prices
- Period 1 quantities at period 1 prices
- Which of the following statement is correct with regard to the theory of revealed preference?
- It is inferring a consumer’s preferences from that person’s market choices
- It can be used to derive a consumer’s indifference curve
- It can be used to derive a consumer’s demand curve
- All of the above
- The Revealed Preference Theory of consumer behaviour is based on the assumption that
- consumers are rational
- the preference scale remains constant over time
- Both of the above
- None of the above
- Which of the following is not an assumption of the theory of revealed preference?
- A cardinal measure of utility
- A consumer can be induced to purchase any basket of commodities if its price is made sufficiently attractive.
- Revealed Preference Theory was propounded by
- Alfred Marshall
- Paul Samuelson
- Robert Brown
- David Ricardo
Revealed Preference Theory MCQs with Answers