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What is the correct answer?

4

Moving down along a linear demand curve:

A. Demand becomes less elastic

B. Elasticity does not change

C. Demand has unitary elasticity

D. Demand becomes more elastic

Correct Answer :

A. Demand becomes less elastic


Related Questions

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4

Of the following, which one corresponds to fixed cost?

A. Payments for raw materials

B. Labor cost

C. Transportation charges

D. Insurance premium on property

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4

In perfectly competitive markets, the profit maximization rule can be represented by:

A. MR=ATC

B. P=ATC

C. P=MC

D. P=AC

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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

The minimization of costs subject to output requires equilibrium at the lowest:

A. Isoquant line

B. Isocost line

C. Indifference curve

D. Price line

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4

In monopoly, the relationship between average revenue and marginal revenue curves is as follows:

A. Average revenue curve lies above the marginal revenue curve

B. Average revenue curve coincides with the marginal revenue curve

C. Average revenue curve lies below the marginal revenue curve

D. Average revenue curve is parallel to the marginal revenue curve

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4

The number of sellers in oligopoly is:

A. Two

B. One

C. Very large

D. A few

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4

The right of individuals to control productive resources is known as:

A. Monopoly

B. Private property

C. Workable competition

D. Oligopoly

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4

If the commodity is normal then price effect is:

A. Negative

B. Inverse

C. Positive

D. Both (a) and(b)

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4

If we measure the elasticity of demand with the help of the average and marginal revenue, the formula is:

A. Ed = AR/ (AR- MR)

B. Ed = MR/ (AR-MR)

C. Ed = AR/(MR-AR)

D. Ed = AR/ MR

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4

If at the unchanged price, the demand for a commodity goes up, or the quantity demanded remains the same when its price goes up, it is called:

A. Contraction of demand

B. Decrease in demand

C. Increase in demand

D. Extension of demand

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4

Formulation of an economic theory involves:

A. Statements of various assumptions or postulates

B. Logical deductions from the assumptions made

C. Testing the hypothesis against empirical evidence

D. All of the above

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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

Which of the following is not characteristic of perfect competition?

A. Freedom of entry and exit

B. Each seller is a price taker

C. Perfect information about prices

D. Heterogeneous products

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4

The short-run supply curve of the perfectly competitive firm is given by:

A. The rising portion of its MR over and above the break-even (shut-down) point

B. The rising portion of its MC over and above the break-even (shut-down) point

C. The rising portion of its MC over and above the AC curve

D. The rising portion of its MC curve

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4

Supply of a commodity refers to:

A. Total stock of a commodity in the market

B. Total production of a commodity during the year

C. Total production plus total stock of a commodity

D. Amount of commodity offered for sale at some price at a particular place and time

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4

The total revenue curve for monopolist is the shape of:

A. Circle

B. Rectangle

C. Parabola

D. None of the above

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4

The main contribution of Prof. R.G.D.Allen is in the field of:

A. fixation of price

B. Arc elasticity of demand

C. Cross elasticity of demand

D. Wage theory

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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

The act of producing the output from more than one plant is concerned with:

A. Monopoly

B. Multi-plant monopoly

C. Bilateral monopoly

D. Price discrimination

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4

If Marginal Utility (MU) is zero, then total utility is:

A. Maximum

B. Minimum

C. Infinite

D. Not measureable

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4

The costs faced by the firm against fixed factors are:

A. Total costs

B. Fixed costs

C. Variable costs

D. Marginal costs

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4

If X and Y are close substitutes, a rise in the price of X will lead to:

A. Increase in demand for Y

B. Decrease in demand for Y

C. Decrease in demand for both X and Y

D. No change in demand for Y

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4

If the price of coffee increases, you would predict that:

A. Demand curve for sugar will shift downward (leftward)

B. Supply curve for sugar will shift leftward (upward)

C. Demand curve for bread will shift downward (leftward)

D. None of the above

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4

The indifference curve technique:

A. Helps in separating the income effect and the substitution effect

B. Does not help in separating the two effects

C. Mixed up the two effects

D. None of the above

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4

Under monopolistic competition, in long-run there is:

A. Ban on exit

B. Ban on entry

C. Free entry

D. Free entry and exit

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4

Economics is a:

A. Physical science

B. Social science

C. Natural science

D. Basic science

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4

Identify the work of Irving Fisher:

A. Policy on trade

B. Policy against inflation

C. The making of index numbers

D. Labor theory

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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

The cost curves of the firm shift due to changes in:

A. Input prices

B. Technological innovations

C. Both of them

D. None of them

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4

Average Revenue means:

A. Per unit revenue received from all the units sold by the producer

B. Revenue of the units having average size

C. Total number of units× Revenue per unit

D. Total revenue × Number of units sold