Moving along an indifference curve leaves the consumer:
Better off
Worse off
Neither better nor worse off
None of the above
Correct Answer :
C. Neither better nor worse off
Moving along the same indifferent curve, the consumer gets equal level of satisfaction so moving from one point to another on the same indifferent curve leaves it neither better nor worse off.}
Related Questions
The greater the percentage of income spent on a commodity:
The greater its elasticity is likely to be
The weaker its elasticity is likely to be
The unchanged its elasticity is likely to be
None of the above
Marginal cost is found with the help of changes in:
Total cost or total variable cost
Total explicit cost
Total fixed cost
Total implicit cost
On an indifference map higher indifference curves show:
The same level of price
The same level of satisfaction
The higher level of satisfaction
The lower level of satisfaction
The study of economic theory for the sake of certain objective is called:
Positive Economics
Normative Economics
Micro Economics
Development Economics
An indifference curve normally slopes downward from:
Left to right
Right to left
Both of them
None of them
Robbins definition of economics was criticised by:
Alfred Marshal
Adam Smith
J.B.Clark
Hicks, Longe and Durbin
A firm is a sum of persons who convert:
Goods into services
Output into inputs
Inputs into outputs
None of the above
Identify the author of The Principles of political Economy and Taxation:
Alfred Marshal
J.S.Mill
David Ricardo
A.C.Pigou
In case of monopoly:
MR
MR>AR
MR=AR
AR=0
In monopoly, when average revenue curve falls:
MR constant
MR rises
MR falls
MR is zero
Rational economic behavior on the part of the consumer means that he will:
Save as much of his income as possible
Spend as much of his income as possible
Buy everything at the lowest possible price
Make wise choices among available economic goods
In respect of which of the following category of goods is consumers surplus highest?
Giffen goods
Necessities
Luxuries
Prestige goods
With the decrease in marginal valuation of a specific commodity, the price offered by the people:
Decreases
Increases
Become very high
Remain unchanged
The firm producing at the minimum point of the AC curve is said to be:
Operating under diminishing cost
Making optimum use of plant capacity
Operating at excess capacity
Operating under increasing costs
When total revenue is maximum in monopoly, elasticity of demand is:
E =1
E >1
E <1
E =0
In second degree price discrimination, monopolist takes away :
All of the consumer surplus
All of the producer surplus
Some part of the consumer surplus
None of them
A monopolist:
Can not influence the market
Can influence the market
Is a price taker
None of the above
If the price of a product falls then quantity demanded tends to increase ceteris paribus because:
The MU/P ratio has decreased
Of the income and substitution effects
Consumers tend to feel poorer when prices fall
When price falls the demand curve shifts right
A vertical supply curve parallel to the price axis implies that the elasticity of supply is:
Zero
Infinite
Equal to one
Greater than zero but less than infinite
The advertisement and other selling activities:
Lessen the differentiation
Widen the differentiation
Does not effect the differentiation
All of the above
Who developed the concept of Representative Firm?
A.C.Pigou
Alfred Marshal
J.M.Keynes
D.H.Robertson
Total costs are:
TFC TVC
TFC/TVC
TVC/TFC
TFC +TVC
In case of income effect, the level of consumers satisfaction rises when:
Income rises
Income falls
Sales rises
Price falls
If in the long run all factor inputs are increased three times and the resulting output is four times as before, it is a case of:
Decreasing returns to scale
Variable returns to scale
Constant returns to scale
Increasing returns to scale
Most of the supply curves with which the average consumer deals are:
Vertical
Horizontal
Controlled by the largest producers
Unaffected by inflation
By increasing the price of its products above those of its competitors, a perfectly competitive seller:
Can sell more
Reduces its revenues
Can sell nothing
Increases its revenues
Price effect occurs on the higher IC in case of:
Slutsky approach
Hicksian approach
Marshallian approach
None of the above
The low cost price leader will charge:
higher prices
zero prices
lower prices
specific prices
When a consumer reached at the point of saturation then marginal utility (MU) is:
Negative
One
Positive
Zero
In the case of superior (normal) commodity, the income elasticity of demand is:
Positive
Unitary
Negative
Infinite