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4

An exceptional demand curve is:

A. Downward sloping

B. Upward sloping

C. Horizontal straight line

D. Vertical straight line

Correct Answer :

B. Upward sloping


In some exceptional cases law of demand is violated. For example in the case of giffen goods, as the price of giffen goods rise then there demand will also rise. And in the case of commodities which are used as a status symbols (also known as Veblen goods), as the price of these goods rise then their demand will also rise. So in above exceptional cases, the demand curve will upward sloping from left to right like supply curve showing positive relationship between quantity demanded and price. This demand curve is also called exceptional demand curve}

Related Questions

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4

If a consumer buys a product that costs Rs.3 and provides an additional 18 units of satisfaction, then for this purchase:

A. Total utility will increase by 6 units

B. The marginal utility per rupee is 6

C. The consumer will buy more because marginal utility is positive

D. The consumer obtained an extra54 units

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4

There is no difference between fixed and variable factors in the:

A. Long run

B. Short run

C. Average run

D. None of the above

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4

In cournot model, firms make decisions separately regarding:

A. output

B. input

C. price

D. advertisement

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4

When there is decrease in demand the demand curve:

A. Moves (shifts) towards the axis

B. Moves (shifts) away from the axis

C. Remains unchanged

D. All of the above

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4

A firm will be in equilibrium when the lowest isocost is:

A. Tangent to the lowest isoquant

B. Tangent to the given isoquant

C. Above the given isoquant

D. Below the given isoquant

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4

At a point where a straight line demand curve meets the price axis (Y-axis), the elasticity of demand is:

A. Equal to one

B. Less than one

C. Equal to zero

D. Equal to infinite

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4

The concept of product differentiation was firstly introduced by:

A. Smith

B. Kaldor

C. Sraffa

D. Marshal

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4

Under the perfect competition, the transportation cost:

A. Is considered to be negligible and thus ignored

B. Is considered to be vital for the calculation of total cost

C. Is charged along with the price of the commodity

D. None of the above

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4

Rent is a creation of value, not of wealth who made this observation?

A. Adam Smith

B. David Ricardo

C. Alfred Marshal

D. A.C.Pigou

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4

The Substitution Effect (S.E) is always:

A. Negative

B. Zero

C. Positive

D. Infinite

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4

The economic problem of determining the combination of inputs yielding lowest cost for producing a given output:

A. Is only a choice among the technologically efficient combination

B. Depends on the relative price of inputs

C. Depends on the price of the product

D. Depends on the profits made

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4

Law of Returns to Scale shows:

A. Technical relationship between input of a variable factor and the resulting output

B. Any economic relationship between input and output

C. An output maximizing relationship

D. A relationship with input changing and corresponding changes in output

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4

Regarding economic decisions, economics of uncertainty identifies:

A. No risks

B. Risks

C. Safety

D. None of the above

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4

The demand for cigarettes is price inelastic implying a unit tax on this commodity will

A. Will mainly paid by sellers of the product

B. By mainly paid by cigarette smokers

C. Be mainly paid by tobacco growers

D. None of the above

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4

An optimum level of a firms output is:

A. Where marginal cost is minimum

B. Where average cost is minimum

C. Where both the marginal and the average cost curves are at their respective minimum

D. Where the firm earns the maximum profits

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4

Most of the supply curves with which the average consumer deals are:

A. Vertical

B. Horizontal

C. Controlled by the largest producers

D. Unaffected by inflation

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4

Price effect occurs on the higher IC in case of:

A. Slutsky approach

B. Hicksian approach

C. Marshallian approach

D. None of the above

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4

After reaching the saturation point consumption of additional units of the commodity cause:

A. Total utility to fall and marginal utility to increase

B. Total utility and marginal utility both to increase

C. Total utility to fall and marginal utility to become negative

D. Total utility to become negative and marginal utility to fall

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4

The concept of industry in monopolistic competition has been replaced by:

A. Firm

B. Product group

C. Producers

D. Shopkeepers

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4

In Bertrand model, the entry of new firms is:

A. banned

B. allowed

C. partially allowed

D. none of the above

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4

According to the principle of substitution?

A. Many goods have no effective substitutes

B. Nearly all goods have substitutes

C. The prices of substitute goods must be the same

D. Buyers will stop buying a good if its price rises

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4

If the marginal utility is divided by the price of the commodity then it is called:

A. Real Marginal Utility

B. Gross Marginal Utility

C. Weighted Marginal Utility

D. Money Marginal Utility

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4

The right of individuals to control productive resources is known as:

A. Monopoly

B. Private property

C. Workable competition

D. Oligopoly

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4

According to law of Equi-Marginal Utility when price of commodity falls then we bought:

A. More units

B. Less units

C. Same units

D. Zero units

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4

Monopoly means:

A. Where there is no retail trade and every thing is sold on wholesale basis

B. Where trading of a particular commodity is controlled exclusively by one firm

C. Where many people sell only one commodity

D. A form of business organization in which only single proprietorship exists

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4

Total utility:

A. Diminishes with increased consumption

B. Reflects the overall level of satisfaction of the consumer

C. Is directly related to the price the consumer is willing to pay for a good or service

D. Is independent of price changes

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4

Now-a-days in real life, we are unable to fined:

A. Monopoly

B. Perfect competition

C. Imperfect competition

D. Monopolistic competition

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4

If the commodities X and Y are perfect complements then:

A.

B.

C.

D. None of the above

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4

The equilibrium conditions, MC = MR = AR = AC, will happen:

A. In the short-run under perfect competition

B. In the long-run under perfect competition

C. In the short-run under monopolistic competition

D. In the long-run under monopolistic competition

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4

Under Bandwagon effects, people use those goods which are used by their:

A. Friends

B. Relatives

C. Family

D. All of them