The budget-line is also known as the
Q. The budget-line is also known as the: A. Iso-utility curve B. Production possibility line C. Isoquant D. Consumption possibility line Answer: Consumption possibility line
In the case of a Giffen good, the demand curve will be
Q. In the case of a Giffen good, the demand curve will be: A. Horizontal B. Downward-slping to the right C. Backward falling to the left D. Upward-slopping to the right Answer: Backward falling to the left
In the case of a Giffen good, the demand curve will be Read More »
If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be
Q. If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be: A. Horizontal B. Vertical C. Positively sloped D. Negatively sloped Answer: Vertical
In the case of an inferior good, the income elasticity of demand is
Q. In the case of an inferior good, the income elasticity of demand is: A. Positive B. Zero C. Negative D. Infinite Answer: Negative
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Total utility is maximum when
Q. Total utility is maximum when: A. Marginal utility is zero B. Marginal utility is at its highest point C. Marginal utility is equal to average D. Average utility is maximum Answer: Marginal utility is zero
In respect of which of the following category of goods is consumer’s surplus highest?
Q. In respect of which of the following category of goods is consumer’s surplus highest? Giffen goods Necessities Luxuries Prestige goods Answer: Necessities
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Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price
Q. Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price: A. Equal to one B. Greater than one C. Small than one D. Zero Answer: Small than one
Identify the factor which generally keeps the price-elasticity of demand for a commodity now
Q. Identify the factor which generally keeps the price-elasticity of demand for a commodity now: A. Variety of uses for that commodity B. Its low price C. Close substitutes for that commodity D. High proportion of the consumer’s income spent on it Answer: Its low price
In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be
Q. In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be: A. 0 B. 1 C. 1.5 D. 2 Answer: 1
The Law of Demand, assuming other things to remain constant, establishes the relationship between
Q. The Law of Demand, assuming other things to remain constant, establishes the relationship between: A. Income of the consumer and the quantity of a commodity demanded by him B. Price of a commodity and the quantity demanded C. Price of a commodity and the demand for its substitute D. Quantity demanded of a commodity