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4

By scarcity the economist means that all goods are scarce relative the peoples:

A. Desire for them

B. Purchases

C. Production

D. Consumption

Correct Answer :

A. Desire for them


Related Questions

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4

Formulation of an economic theory involves:

A. Statements of various assumptions or postulates

B. Logical deductions from the assumptions made

C. Testing the hypothesis against empirical evidence

D. All of the above

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4

Marginal utility (MU) always:

A. Increases

B. Decreases

C. Remains constant

D. None of above

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4

All of the following are capital resources except:

A. Warehouses

B. Buildings

C. Dams

D. Share of stock

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4

The proportional demand curve in monopolistic competition (also in kinked demand curve model), is like industry demand curve in:

A. Monopolistic competition

B. Imperfect competition

C. Monopoly

D. Perfect competition

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4

With elasticity of demand, the:

A. Negative sign is ignored

B. Positive sign is ignored

C. None of them

D. Both of them

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4

The kinked demand curve comes into being where:

A. Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other

B. Proportional demand curve (PDC) and individual demand curve (IDC) are parallel to each other

C. Proportional demand curve (PDC) and individual demand curve (IDC) repel each other

D. None of the above

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4

In monopolistic competition, the real differentiation in products is due to difference in:

A. Style

B. Consumer

C. Cost

D. Material

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4

If a ten percent increase in price causes a ten percent reduction in quantity demanded, elasticity of demand is:

A. Perfectly elastic

B. Elastic

C. Unitary elastic

D. Inelastic

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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

Micro economics is concerned with:

A. Product markets

B. Factor markets

C. Supply and demand

D. a, b and c

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4

A firm under perfect competition has:

A. An AR curve which is a horizontal straight line

B. An AR curve which slopes downward

C. An AR curve which has a kink

D. An AR curve shape of which cannot be predicted

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4

According to M.Kalecki, the true measure of the degree of monopoly power is the:

A. Ratio between price and marginal cost

B. Extent of monopolistic profit enjoyed by him

C. Cross-elasticity of demand for the product of the monopolist

D. Price charged by the monopolist minus marginal cost of production

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4

Marginal cost is found with the help of changes in:

A. Total cost or total variable cost

B. Total explicit cost

C. Total fixed cost

D. Total implicit cost

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4

In Nash equilibrium, a player:

A. Deviates from his strategy

B. Does not deviate from his strategy

C. Does not think in a good way

D. None of the above

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4

An indifference curve normally slopes downward from:

A. Left to right

B. Right to left

C. Both of them

D. None of them

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4

With firms having cost differences under perfect competition, a firm, which earns normal profit in the long-run is called:

A. An optimum firm

B. A representative firm

C. An oxford firm

D. A marginal firm

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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

In economics, Externality means:

A. An externality is a cost or benefit which is not transmitted through prices

B. An externality is a cost or benefit which is transmitted through prices

C. An externality is a production received through external resources

D. None of the above

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4

In case of monopoly, both AR and MR fall, but MR falls:

A. Double to that of AR

B. 1/2 to that of AR

C. 2/3 to that of AR

D. Four times to that of AR

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4

The short-run periods in monopolistic competition are:

A. Parallel to each other

B. Dependent upon each other

C. Independent of each other

D. Zero

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4

The number of sellers in oligopoly is:

A. Two

B. One

C. Very large

D. A few

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4

In Revealed Preference Theory, Samuelson proves P.E = S.E + I.E :

A. With using indifference curves

B. With using MRS

C. Without using indifference curve

D. None of the above

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4

In modern theory of costs, a firm normally utilizes:

A. 2/3 of capacity of its plants

B. 3/4 of capacity of its plants

C. 1/3 of capacity of its plants

D. 1/2 of capacity of its plants

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4

Elasticity (E) expressed by the term, 1>E>0, is:

A. Perfectly elastic

B. Relatively elastic

C. Unitary elastic

D. Relatively inelastic

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4

When a consumer is in equilibrium then slope of indifference curve is:

A. Equal to the slope of budget line

B. Greater than the slope of budget line

C. Smaller than the slope of budget line

D. Parallel to the slope of budget line

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4

A monopolist is:

A. Price winner

B. Price searcher

C. Price taker

D. Price leaver

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4

The coefficient of the price elasticity of demand is computed as the absolute value of the percentage change in quantity demanded divided by:

A. The change in price

B. The change in supply

C. The percentage change in supply

D. The percentage change in price

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4

The game theory takes into consideration:

A. Reaction of rival firms

B. Reactions of people

C. No reaction of rival firms

D. None of the above

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4

A country is advised to devalue (reduce external value of) its currency only when its exports face:

A. Inelastic demand in foreign markets

B. Elastic demand in foreign markets

C. Unit elastic demand in foreign markets

D. None of the above

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4

All of the following curves are U-Shaped except:

A. The AVC curve

B. The AFC curve

C. The AC curve

D. The MC curve