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What is the correct answer?

4

Marginal utility equals:

A. Slope of total utility curve

B. Slope of average utility curve

C. Slope of marginal utility curve

D. Slope of total revenue curve

Correct Answer :

A. Slope of total utility curve


Related Questions

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4

The market demand shedule is determined by:

A. Adding up the prices consumers are wiling to pay at each quantity demanded

B. Multiply each consumers demand curve by the total number of consumers in the market

C. Adding the quantities denmanded by all consumers at each alternative price

D. None of the above

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4

Moving along the indifference curve leaves the consumer:

A. Better off

B. Worse off

C. In equilibrium

D. Neither better off nor Worse off

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4

The combination of labor and capital where the cost of a given output is minimized is known as:

A. Least cost factor combination

B. Optimum factor combination

C. Both a and b

D. None of them

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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

In the real world, some competitive firms owns specialized resources that earn a return called:

A. Economic profit

B. Rent

C. Accounting profit

D. Normal profit

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4

Income effect operates through an increase

A. In nominal income

B. In money income

C. In wages

D. In real income because of the fall of price of a commodity

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4

In real life, brand loyalty is a barrier to:

A. Enter the new firms

B. Exit the new firms

C. Both a and b

D. None of the above

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4

In the long run average costs curve, a firm can change:

A. Labour

B. Capital

C. Both of them

D. None of them

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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

Some farm land can be used to produce either corn or soybeans. If the demand for corn increases then:

A. The demand for soybeans should increase

B. The supply of soybeans should increase

C. The demand for soybeans should decrease

D. The supply of soybeans should decrease

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4

By saying that monopolist create a contrived scarcity, economist mean that monopolist:

A. Restrict output to increase price

B. Produce where MC > P

C. Create a gap b/w quantity demanded and supplied

D. None of the above

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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

In Edgeworth model, price remains:

A. Constant

B. On increasing

C. Independent

D. Indeterminate

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4

When total revenue (TR) falls in monopoly then elasticity of demand is:

A. E =1

B. E >1

C. E <1

D. E =0

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4

The long run average cost curve is the envelope of:

A. SACs

B. LACs

C. SMCs

D. LMCs

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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

If two goods have same marginal utility for a consumer then:

A. He will consume only one of them

B. He will consume equal quantities of them

C. He will be willing to pay the same price for each of them

D. The total utility gained from each of them is equal

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4

A monopolist will fix the equilibrium output of his product where the elasticity of his average revenue curve is:

A. Less than one

B. Equal to one

C. Greater than one

D. Less than one

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4

Total profits are maximized at the point where:

A. TR equals TC

B. The TR curve and the TC curve intersect such that TR and TC lie at the same point

C. The TR curve and the TC curve are parallel and TC exceeds TR

D. The TR curve and the TC curve are parallel and TR exceeds TC

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4

A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand:

A. Increases

B. Decreases

C. Remains the same

D. Is zero

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4

In monopolistic competition, the cost curves of all firms are:

A. Uniform

B. Different

C. Dependent

D. Independent

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4

Demand is elastic when the coefficient of elasticity is:

A. greater than zero

B. less than one

C. greater than one

D. less than one

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4

When the output of a firm is increasing, its average fixed cost:

A. Declines continuously

B. Remains constant

C. Rises continuously

D. Declines and then rises

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4

The equilibrium of a firm is determined by the equality of MC and MR in only:

A. Under perfect competition

B. Under monopoly

C. Under imperfect competition

D. Under all the above market forms

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4

Along an isoquant, output remains same, and capital labor ratio:

A. Is also same

B. Is different

C. Is constant

D. Is zero

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4

Production function shows:

A. Technical relationship between inputs and output

B. Profitability production

C. Relation between MR and MC

D. Relation between AR and AC

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4

Marginal cost is always:

A. Less than the average cost

B. More than the average cost

C. Equal to the average cost at minimum point

D. Never equal to the average cost

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4

The kink demand curve faced by an oligopolist is based on the assumption that:

A. Competitors will follow a price increase but not a price cut

B. Competitors will follow a price increase as well as a price cut

C. Competitors will ignore both a price increase and a price cut

D. Competitors will ignore a price increase but will follow a price cut

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4

The slope of budget line shows the price ratios of:

A. Many goods

B. Few goods

C. Two goods

D. Three goods

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4

The consumer is in equilibrium at the where:

A. Budget line and indifference curve intersect each other

B. Budget line and indifference curve are tangent to each other

C. Budget line and indifference curve are opposite to each other

D. Budget line and indifference curve are parallel to each other