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4

On all points of budget (price) line:

A. Total expenditures increases

B. Total expenditures decreases

C. Total expenditures are zero

D. Total expenditures remain same

Correct Answer :

D. Total expenditures remain same


Related Questions

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4

When was Adam Smiths major work An Enquiry into the Nature and Causes of Wealth of Nations published?

A. 1756

B. 1777

C. 1776

D. 1801

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4

The number of firms in monopolistic competition normally range between:

A. 14 to 28

B. 14 to 80

C. 14 to 38

D. 14 to 60

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4

Decrease in demand results in:

A. Upward shift in demand curve

B. Downward shift in demand curve

C. Movement on the same demand curve

D. No movement or shift at all

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4

If production increases under increasing 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

With the expansion of output, the short run average cost curve, beyond a point, starts rising because:

A. Average fixed cost increases sharply

B. More production yields lower per unit price

C. The law of variable proportions applies to short run production

D. Sales expenses become much larger

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4

Price discrimination is possible:

A. When elasticities of demand in different markets are the same at the ruling price

B. When elasticities of demand are different in different markets at the ruling price

C. When elasticities cannot be known

D. When elasticities of demands are zero in different markets at the rulling price

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4

If, at the prevailing price, more of a good is desired than is available for sale:

A. The price is below equilibrium

B. The price is at equilibrium

C. The price must fall

D. We cannot tell anything about the price

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4

The main contribution of David Ricardo is in the field of:

A. Wages of labor

B. Factor pricing

C. Theory of rent

D. Determination of the rate of interest

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4

In monopolistic competition, the firm compete on the basis of:

A. Price

B. Entry

C. Both a and b

D. None of the above

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4

Law of Diminishing Marginal Utility is practically untrue because:

A. It is given to a lot of criticism

B. It is too difficult to be explained

C. It is based on assumptions which are unreal

D. Economists do not agree on this

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4

Revealed Preference Theory was presented by:

A. Ricardo

B. Adam Smith

C. Pigou

D. Samuelson

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4

The entry of new firms in cournot model is:

A. Banned

B. Free

C. Partially free

D. Allowed

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4

The production function can convey to a firm:

A. The cost of producing any given output

B. The various combinations of input that could be employed in production of any given quantity of output

C. The various combinations of input that should be used in producing any given quantity of output in an efficient manner

D. The maximum profit level of output

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4

In long run, a firm can change:

A. Fixed factors

B. Variable factors

C. Both of them

D. None of them

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4

For a commodity giving large consumers surplus, the demand will be:

A. Less elastic

B. More elastic

C. Unit elastic

D. Zero elastic

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4

In economic term water is a:

A. Free good

B. Economic good

C. Both of the above

D. None of the above

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4

With firms having cost differences under perfect competition, a firm, which earns normal profit in the long-run is called:

A. An optimum firm

B. A representative firm

C. An oxford firm

D. A marginal firm

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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

In case of economic bads, an IC can be :

A. Sloping downward

B. Sloping upward

C. Positively sloped

D. Negatively sloped

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4

The engineering production function and engineering costs curves are concerned with the:

A. Production cost

B. Collection cost

C. Raw material costs

D. Distribution costs

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4

A firms profit is equal to:

A. R-C

B. R>C

C. R

D. R=C

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4

The Latin term citeris paribus means:

A. Other things being equal

B. Because of this

C. Due to this

D. All the factors changes at the same rate

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4

Now-a-days in real life, we are unable to fined:

A. Monopoly

B. Perfect competition

C. Imperfect competition

D. Monopolistic competition

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4

Utility is a function of:

A. Price

B. Quantity

C. Supply

D. Demand

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4

Extension (expansion) and contraction of demand are result of:

A. Change in consumers income

B. Change in consumers tastes

C. Change in price

D. None of the above

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4

The Strategy of Economic Development is the work of:

A. S.Kuznets

B. H.Liebenstein

C. A.O.Hirshman

D. Alfred Marshal

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4

Competitors in monopolistic competition have full control over:

A. The price of their product

B. Product quality

C. The shape of the market demand curve

D. The elasticity of product substitution

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4

Total costs are:

A. TFC TVC

B. TFC/TVC

C. TVC/TFC

D. TFC +TVC

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4

Substitution effect means a consumer

A. Shifts away from the commodity the price of which has fallen

B. Shifts in favour of a commodity the price of which has risen

C. Shifts away from a commodity the price of which has risen, in favour of a commodity the price of which has fallen

D. None of the above

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4

External economies are witnessed in:

A. A rising supply curve

B. A rising demand curve

C. A falling supply curve

D. A falling demand curve