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Microeconomics deals with the:

A. Allocation of resources of the economy as between production of different goods and services

B. Determination of prices of goods and services

C. Behavior of industrial decision makers

D. All of the above

Correct Answer :

D. All of the above


Related Questions

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Government planners play a central role in allocating resources:

A. Only under socialism(communism)

B. Only under capitalism

C. Under both (a) and (b)

D. None of the above

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Because of selling costs, the demand curve of a firm shifts:

A. Downward

B. Upward

C. Horizontal

D. Straight line

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If two goods are perfect substitutes then IC will be:

A. Concave to the origin

B. Convex to the origin

C. Positively sloped

D. Negatively sloped

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4

Which is the correct statement?

A. The U shape of long-run cost curve is less pronounced than the short-run cost curves

B. The U shape of the short-run cost curves is less pronounced than the long-run cost curves

C. The U shape of the long-run cost curve is more pronounced than the short-run cost curves

D. The long-run cost curves are never U shaped

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When sales tax is imposed on monopolist, its:

A. Output is effected

B. Equilibrium is effected

C. Input is effected

D. Reputation is effected

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We can measure consumers surplus with the help of

A. TU curve

B. MU curve

C. Supply curve

D. None of the above

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When the demand curve is rectangular hyperbola, it represents:

A. Unitary elastic demand

B. Perfectly elastic demand

C. Perfectly inelastic demand

D. Relatively elastic demand

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Which is the other name that is given to the average revenue curve?

A. Profit curve

B. Demand curve

C. Average cost curve

D. Indifference curve

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Profits of a firm will be calculated taking into account the units produced and the difference between:

A. Real cost and money cost

B. Variable cost and fixed cost

C. Average cost and average revenue

D. Marginal cost and average cost

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4

If the commodity is normal then the Income Effect (I.E) and the Substitution Effect (S.E):

A. Both move together and reinforce each other

B. One moves and the other remains constant

C. Move in the opposite direction and neutralize each other

D. Both remain constant

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When income of the consumer increases then demand curve of an inferior good:

A. Shifts rightward

B. Shifts leftward

C. Does not shift

D. None of the above

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The ordinal approach was presented by:

A. Marshal

B. J.R.Hicks

C. Adam smith

D. Rostow

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In Bertrand model, the entry of new firms is:

A. banned

B. allowed

C. partially allowed

D. none of the above

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The average fixed cost (AFC) curve is asymptote to:

A. X-axis

B. Y-axis

C. Z-axis

D. None of the above

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Contracts made by firms in cooperative games are:

A. Biased

B. Binding

C. Not binding

D. Conditional

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The cost of firms in cournot model are:

A. identical

B. differential

C. very high

D. very low

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Duopoly is a market where there are:

A. Two sellers

B. A few sellers

C. Five sellers

D. Many sellers

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When price decreases and with it the total outlay on a commodity also decreases, it is a case of:

A. Perfect elasticity (infinitely elastic)

B. Relative elasticity (greater than one elasticity)

C. Perfect inelasticity (zero elasticity)

D. Relative inelasticity (less than one elasticity)

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In cournot model, firms sell:

A. Superior goods

B. Inferior goods

C. Identical goods

D. Differential goods

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Human wants are:

A. Thousands

B. Few

C. Innumerable

D. Hundreds

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The study of economic theory for the sake of certain objective is called:

A. Positive Economics

B. Normative Economics

C. Micro Economics

D. Development Economics

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Increase in demand occurs when:

A. The price falls and the demand also falls down

B. The price increases but demand falls down

C. The price increases the demand remains constant and when the price remains constant the demand goes up

D. The price remains constant but demand falls

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Contraction in demand occurs when:

A. Price increases and demand decreases

B. Price increases but demand also increases

C. Price remains constant but demand falls down

D. Price falls down but demand remains constant

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The point where the supply and demand curves intersect on a graph determines:

A. Market price

B. Equilibrium price

C. Long-term price

D. Short-term price

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If the commodity is normal then price effect is:

A. Negative

B. Inverse

C. Positive

D. Both (a) and(b)

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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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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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An effective price ceiling usually results in:

A. Excess demand

B. Qd > Qs

C. Shortage of supply

D. All of the above

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The firms in non-cooperative games:

A. Enforce contracts

B. Make contracts

C. Make negotiations

D. Do not make negotiations

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The longer the period of time, the elasticity of supply will be:

A. Constant

B. Less elastic

C. More elastic

D. Perfectly elastic