Q. Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium: Price will decrease Price will increase Quantity will increase Quantity will decrease Answer: Quantity will decrease
Q. Income elasticity of demand is defined as the responsiveness of: Quantity demanded to a change in income Quantity demanded to a change in price Price to a change in income Income to a change in quantity demanded Answer: Quantity demanded to a change in income
Income elasticity of demand is defined as the responsiveness of Read More »
Q. The elasticity of demand of durable goods is: More elastic Less elastic Zero elastic Infinite elastic Answer: More elastic
Q. The Heckscher-Ohlin approach to international trade provides important insights, in Gains from trade Effect of trade on production and consumption Effect of trade on the incomes of production factors All of the above Answer: All of the above
The Heckscher-Ohlin approach to international trade provides important insights, in Read More »
Q. A change in fiscal policy affects the balance of payments through: The current account only The capital account only Both, the current account and capital account Neither current account nor capital account Answer: Both, the current account and capital account
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Q. The elasticity of demand of durable goods is: Less than unity Greater than unity Equal to unity Zero Answer: Greater than unity
Q. Which one is the assumption of law of demand? Price of the commodity should not change Quantity demanded should not change Prices of substitutes should not change Demand curve must be linear Answer: Prices of substitutes should not change
Q. The following is the direct tax among: House tax Entertainment tax Service tax Value Added tax Answer: House tax
Q. The cost of one thing in terms of the alternative given up is called: Real cost Production cost Physical cost opportunity cost Answer: opportunity cost
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Q. An individual demand curve slopes downward to the right because of the: Working of the law of diminishing marginal utility substitution effect of decrease in price income effect of fall in Price All of the above Answer: All of the above
An individual demand curve slopes downward to the right because of the Read More »
