In the two-commodity consumer equilibrium condition, which equality must hold? MCQ with Answer and Explanation

Question

Share Report Error

In the two-commodity consumer equilibrium condition, which equality must hold?

A. Px × MUx = Py × MUy

B. MUx = MUy

C. Px/Py = MUy/MUx

D. MUx/Px = MUy/Py

Answer: Option D

Solution (By JKSSB Mock Tests)

The consumer is in equilibrium when marginal utility per rupee is equal for all goods: MUx/Px = MUy/Py.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'Public Financial Management System' is used for:

A. digital management of government expenditures and payments

B. bank lending

C. foreign exchange trading

D. stock trading

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
PFMS is a digital platform for government expenditure and payment management.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Phillips curve' in the long run is generally considered to be:

A. horizontal

B. upward sloping

C. vertical at the natural rate of unemployment

D. downward sloping

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The long-run Phillips curve is vertical, implying no permanent trade-off between inflation and unemployment.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of public economics, the 'Samuelson Condition' for optimal provision of pure public goods states that:

A. Each individual's marginal rate of substitution equals the marginal cost

B. Only the median voter determines the quantity

C. Private provision is always optimal

D. The sum of marginal rates of substitution equals the marginal rate of transformation

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
The Samuelson condition requires that the sum of the marginal rates of substitution between the public good and a private good across all individuals equals the marginal rate of transformation (marginal cost).

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs