An ISO-product curve slopes
Q. An ISO-product curve slopes: A. Downward to the left B. Downward to the right C. Upward to the left D. Upward to the right Answer: Downward to the right
Production is a function of
Q. Production is a function of: A. Profits B. Costs C. Inputs D. Price Answer: Profits
The Revealed Preference Theory deduces the inverse price-quantity relationship from
Q. The Revealed Preference Theory deduces the inverse price-quantity relationship from: A. Assumption of indifference B. Postulate of utility maximization C. Observed behaviour of the consumer D. Introspection Answer: Observed behaviour of the consumer
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An indifference curve slopes down towards right since more of one commodity and less of another result in
Q. An indifference curve slopes down towards right since more of one commodity and less of another result in: A. Same satisfaction B. Greater satisfaction C. Maximum satisfaction D. Decreasing Expenditure Answer: Same satisfaction
The consumer is in equilibrium at a point where the budget line
Q. The consumer is in equilibrium at a point where the budget line: A. Is above an indifference curve B. Is below an indifference curve C. Is tangent to an indifference curve D. Cuts an indifference curve Answer: Is tangent to an indifference curve
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The elasticity of substitution between two perfect substitutions is
Q. The elasticity of substitution between two perfect substitutions is: A. Zero B. Greater than zero C. Less than infinity D. Infinity Answer: Infinity
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Which one is not a assumption of the theory of demand based on analysis of indifference curves?
Q. Which one is not a assumption of the theory of demand based on analysis of indifference curves? A. Given scale of preferences as between different combinations of two goods B. Diminishing marginal rate of substitution C. Constant marginal utility of money D. Consumers would always prefer more of a particular good to less
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
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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