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4

Elasticity of supply means change in supply due to change in:

A. Price of the commodity

B. Conditions of supply

C. Taste of the consumer

D. Demand for the commodity

Correct Answer :

A. Price of the commodity


Related Questions

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4

If the demand curve remains unchanged and supply increases, the price will:

A. Rise

B. Fall

C. Remain the same

D. None of the above

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4

The short run cost curve is U shaped because of:

A. The operation of increasing cost

B. The existence of fixed cost

C. The existence of variable cost

D. All of the above

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4

In the long run:

A. All factors can be used in different proportions

B. Management can be re-organized

C. A firm can experience returns to scale

D. All of the above

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4

In which case the elasticity shown by the different points of a curve is the same?

A. A straight line curve

B. A downward sloping demand curve

C. A rectangular hyperbola demand curve

D. None of the above

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4

In substitution effect, we:

A. Move to another indifference curve

B. Move along given indifference curve

C. Move to a higher indifference curve

D. Move to a lower indifference curve

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4

Cross-elasticity of demand or cross-price elasticity between two independent goods will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

The Hicksian indirect utility function in the form of equation is:

A. x =f(P)

B. x =a-bp

C.

D.

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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

Indifference curve approach (ordinal approach) is superior to utility approach (cardinal approach) because:

A. In ordinal approach we can separate the income effect from the substitution effect of a price change

B. In ordinal approach we can study the consumer behavior more closely

C. In ordinal approach the consumer is assumed more rational

D. In ordinal approach the consumer has more income

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4

According to classical approach, utility can be:

A. Ranked

B. Consumed

C. Expressed in numbers

D. Cannot be expressed in numbers

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4

On all points of budget (price) line:

A. Total expenditures increases

B. Total expenditures decreases

C. Total expenditures are zero

D. Total expenditures remain same

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4

Under monopolistic competition, the firms compete alongwith:

A. Supreme powers

B. Discretionary powers

C. Low powers

D. None of the above

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4

The game theory is concerned with:

A. Perfect competition

B. Imperfect competition

C. Price discrimination

D. Duopoly and oligopoly

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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 utility function u = f(x) is based upon :

A. Two goods

B. Few goods

C. One good

D. Zero goods

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4

One way the government can induce a monopolist to expand his output is by imposing:

A. A specific tax on the monopolists output

B. A price ceiling that make the monopolist lower his price

C. A price floor that make the monopolist raise his price

D. A heavy tax on the monopolists profit

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4

If production increases under constant returns to scale, the cost will:

A. Increase at a constant rate

B. Decrease at a constant rate

C. Increase at a variable rate

D. Decrease at a variable rate

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4

In microeconomics, we study:

A. Aggregates of the economy

B. Few units of the economy

C. Large units of the economy

D. Individual units of the economy

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4

The shape of the TC curve is:

A. U

B. V

C. P

D. S(inverted)

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4

Rational economic behavior on the part of the consumer means that he will:

A. Save as much of his income as possible

B. Spend as much of his income as possible

C. Buy everything at the lowest possible price

D. Make wise choices among available economic goods

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4

Who stated explicitly for the first time the Law of Camparative Costs?

A. David Ricardo

B. Adam Smith

C. James Mill

D. A.C.Pigou

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4

Who is the author of the famous work Asian Drama: An Enquiry intro the Causes of Poverty of Nations?

A. Irving Fisher

B. J.B.Clark

C. J.M.Keynes

D. Gunnar Myrdal

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4

With which of the following concepts is the name of J.M.Keynes particularly associated?

A. Marginal propensity to consume

B. Marginal propensity to save

C. Liquidity preference

D. All of the above

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4

In 1932, The nature and significance of economic science was written by:

A. Prof. Adam Smith

B. Prof. Alfred Marshal

C. Prof. Robbins

D. J.S.Mill

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4

Who first formulated the Marginal Productivity Theory of Distribution?

A. J.B.Clark

B. L.Euler

C. J.A.Schumpeter

D. Alfred Marshal

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4

If the demand curve is horizontal then its slope is:

A. Infinite

B. Zero

C. Equal to one

D. None of the above

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4

A fall in demand for the product under monopolistic competition will likely result in:

A. A fall in price

B. A decrease in the number of firms in the long-run

C. A decrease in the output of each firm

D. All of the above

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4

The slope of an iso-quant represents:

A. MRS

B. MRT

C. MRTS

D. MRPS

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4

Kinked Demand Curve is consistent with which one of the following market situations?

A. Pure competition

B. Pure monopoly

C. Oligopoly

D. Monopolistic competition

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4

In short-run, in monopolistic competition, a firm earns:

A. Normal profits

B. Abnormal profits

C. No profits

D. All of the above