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4

In a perfectly competitive market, suppliers must know:

A. The incomes of consumers

B. The price of the good

C. What other commodities households could substitute for the good

D. Consumers expectations of the future

Correct Answer :

B. The price of the good


Under perfect competition, suppliers must know the price of the good, but need not to know the characteristics of demanders.}

Related Questions

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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

The production function of homogeneous of degree one (n=1) is also called:

A. Linearly homogeneous

B. Zero homogeneous

C. Infinite homogeneous

D. None of the above

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4

The total utility (TU) curve is:

A. Concave to X-axis

B. Convex to X-axis

C. Concave to Y-axis

D. Convex to Y-axis

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4

In cournot model, each firm makes decision regarding:

A. Price

B. Output

C. Cost

D. Advertisement

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4

Who wrote Mathematical Analysis for Economists?

A. J.P.Lewis

B. R.G.D.Allen

C. Paul A.Samuelson

D. E.D.Domar

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4

If Cobb-Douglas production function is homogeneous of degree less than one (n<1), then it shows:

A. Constant returns to scale

B. Increasing returns to scale

C. Decreasing returns to scale

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

The Input-Output Analysis was originated by:

A. W.W. Leontief

B. E.D.Domar

C. R.G.D.Allen

D. J.M.Keynes

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4

Which of the following is not a property of indifference curve?

A. Convex to the origin

B. Slopes downwards to the right

C. Parallel to each other

D. Cannot intersect each other

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4

The concept of period refers to:

A. A specific duration of time

B. A varying duration of time

C. A duration of time which permits necessary adjustments

D. A period with calculated intervals

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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

In cournot model, firms make decisions separately regarding:

A. output

B. input

C. price

D. advertisement

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4

In modern cost theory, AVC= b1 and MC= b1 in the range of:

A. Excess capacity

B. Reserve capacity

C. Limited capacity

D. None of the above

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4

Implicit costs are the costs:

A. Which are not incurred by the firm and may accrue to the community

B. Of resources the cost of factors owned by the firm

C. Of resources supplied by the household

D. Of government externalities

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4

Classical production function is:

A. Q = f(L)

B. U =f(X)

C. Q =f(K)

D. Q =f(L,K)

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4

If a person behaves against the laws of economics then:

A. He should be condemned

B. He may lose his respect from society

C. He should be punished

D. He should not be punished or even criticised

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4

According to Marshal, the Law of Diminishing Marginal Utility:

A. Applies on both money and other commodities

B. Does not apply on money

C. Does not apply on bank money but applies on cash money

D. Applies on all the commodities except on money

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4

Under pure monopoly, there will be:

A. No distinction between firm and industry

B. One firm and no industry

C. No firm and no industry

D. None of the above

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4

The long-run average cost is based on the fact that:

A. None of the factors are variable in the long-run

B. All factors are perfectly divisible in the long-run

C. None of the factors is divisible

D. Management factor is indivisible while all other factors are divisible and can be varied in long-run

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4

Economic laws are:

A. Conditional

B. Moral by nature

C. Predicted

D. Like laws of sports

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4

In the case of superior (normal) commodity, the income elasticity of demand is:

A. Positive

B. Unitary

C. Negative

D. Infinite

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4

Change in demand (rise and fall of demand) is:

A. Due to change in price while other factors remain constant

B. Due to change in factors other than price

C. Both a and b

D. None of the above

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4

If the commodity is inferior then the increase in income of the consumer results in:

A. More purchase

B. Less purchase

C. Same purchase

D. None of the above

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4

Plumbing and pipe-fitting require many of the same skills. If the wage paid to pipe-fitters increased then the effect on the market for plumbers would probably be:

A. An increase in demand

B. A decrease in demand

C. An increase in supply

D. A decrease in supply

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4

According to Diamond Water Paradox diamonds are more expensive than water because:

A. They yield higher total utility

B. They yield higher marginal utility

C. They are more useful

D. None of the above

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4

The firm producing at the minimum point of the AC curve is said to be:

A. Operating under diminishing cost

B. Making optimum use of plant capacity

C. Operating at excess capacity

D. Operating under increasing costs

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4

In Prisoners Dilemma, both the prisoners are interrogated:

A. Separately in different cells

B. Collectively in different cells

C. Collectively in same cell

D. Separately in same cell

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4

In an indifference curve diagram, when the price of a product increases, the decline in quantity demanded that results if consumers utility or welfare is kept constant is referred to as the:

A. Utility effect

B. Budget line effect

C. Substitution effect

D. Income effect

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4

In Prisoners Dillemma, the players are:

A. Industrialists

B. Prisoners

C. Common men

D. Workers

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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