Q. When cross elasticity of demand is a large positive number, one can conclude that: The good is normal The good is inferior The good is a substitute The good is a complement Answer: The good is a substitute
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Q. Irrespective of price, Sofia always spends Rs. 100 a week on ice cream, we conclude that: Elasticity of demand is 0 Elasticity of demand is 1 Elasticity of demand is infinite The law of demand has been violated Answer: Elasticity of demand is 1
Irrespective of price, Sofia always spends Rs. 100 a week on ice cream, we conclude that Read More »
Q. Law of demand shows relation between: Income and price of commodity Price and quantity of a commodity Income and quantity demand Quantity demanded and quantity supplied Answer: Price and quantity of a commodity
Q. If quantity demanded is completely unresponsive to changes in price, demand is: Inelastic Unit elastic Elastic Perfectly inelastic Answer: Perfectly inelastic
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Q. The following are causes of shift in demand EXCEPT the one: Change in income Change in price Change in fashion Change in prices of substitutes Answer: Change in price
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Q. Who among the following enunciated the concept of single factoral terms of trade? Jacob Viner G.S.Donens Taussig J.S.Mill Answer: Jacob Viner
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Q. The capital that is consumed by an economy or a firm in the production process is known as: Capital loss Production cost Dead-weight loss Depreciation Answer: Depreciation
Q. Which among the following is a cause of inflation? Deficit financing Rise in external loans Unfavourable balance of payment A hike in the CRR by the central bank of the country Answer: Deficit financing
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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 »
