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What is the correct answer?

4

Indifference curves reflect:

A. Preferences

B. Income

C. Prices

D. Consumption

Correct Answer :

A. Preferences


Related Questions

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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

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4

Excess capacity is not found under:

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

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4

A high value of cross-elasticity indicates that the two commodities are:

A. Very good substitutes

B. Poor substitutes

C. Good complements

D. Poor complements

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4

Which cost increases continuously with the increase in production?

A. Average cost

B. Marginal cost

C. Fixed cost

D. Variable cost

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4

Which of the following is assumed to be constant when drawing a demand curve?

A. Consumer tastes

B. Prices of inputs

C. Technology

D. Number of sellers

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4

Suppose income increases by 10% and demand for commodity increases by 5% then the income elasticity of demand is:

A. Negative

B. Positive

C. Zero

D. Infinity

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4

The basic subject matter of economics is:

A. Money

B. Capital resources

C. Scarcity

D. Inflation

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4

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

A. Increase at decreasing rate

B. Increase at constant rate

C. Decrease at increasing rate

D. Increase at increasing rate

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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

Who first used the term Quasi-Rent?

A. David Ricardo

B. Alfred Marshal

C. J.S.Mill

D. Karl Marx

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4

Identify the author of The Affluent Society?

A. Gunnar Myrdal

B. N.Kaldor

C. A.C.Pigou

D. J.K.Galbraith

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4

From analysis, it is clear that both Marshal and Walras market models are:

A. Unstable

B. Stable

C. Variable

D. Fluctuating

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4

The costs faced by the firm against variable factors are:

A. Variable costs

B. Fixed costs

C. Average costs

D. Marginal costs

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4

The Law of Proportionality is another name of:

A. The law of diminishing marginal utility

B. The law of demand

C. The Law of Diminishing Returns

D. The law of supply

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4

The Law of Diminishing Marginal Returns can be explained in terms of:

A. Economies and diseconomies of production

B. Indivisibility of factors

C. Fixity of supply of land

D. Variable factor productivity

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4

Elasticity of demand is equal to unity while marginal revenue is:

A. Positive

B. Zero

C. Negative

D. Indeterminate

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4

A profit-maximizing monopolist in two separate markets will:

A. Charge the same price in both markets

B. Always charge a higher price in the market where he sells more

C. Always charge a higher price in the market where he sells less

D. Adjust his sales in the two markets so that his marginal revenue in each market just equals his aggregate marginal cost

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4

The water diamond paradox was firstly resolved with the help of:

A. Labor theory of value

B. Individual theory of value

C. Producer theory of value

D. Consumer theory of value

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4

Contracts made by firms in cooperative games are:

A. Biased

B. Binding

C. Not binding

D. Conditional

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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

Increasing returns imply:

A. Constant average cost

B. Diminishing cost per unit of output

C. Optimum use of capital and factor

D. External economies

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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

When elasticity of demand is one (e=1), then following the formula MR=P[1-1/e], the MR will:

A. Positive

B. Negative

C. Zero

D. None of the above

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4

The basic and essential economic problems in a community are related to choice and:

A. Freedom

B. Scarcity

C. Social class

D. Politics

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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

Marginal Productivity Theory deals with the theory of:

A. Distribution

B. Exchange

C. Market structure

D. Consumer behaviour

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4

The least cost combination of factors x , y and z will generally be the point at which:

A. Price of x = Price of z Price of y Price of x

B. MP of x = MP of y Price of x Price of x

C. MP of x = MP of y = MP of z Price of x Price of y Price of z

D. MP of x = MP of y = MP of z

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4

Loanable funds theory of Interest was developed by:

A. Wicksell

B. Robert San

C. Ruskin

D. J.B.Say

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4

If a commodity sold under monopoly is got free of cost, then MC will be:

A. Zero

B. Identical with the MR

C. A horizontal straight line

D. Infinite

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4

The line from the origin to a point on an isoquant shows:

A. The wages employment ratio

B. The capital rent ratio

C. The rent labor ratio

D. The capital labor ratio