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4

The amount of income left over for a consumer in equilibrium is :

A. Consumer surplus

B. Zero

C. Two rupees

D. Excess demand

Correct Answer :

B. Zero


Related Questions

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4

In joint-profit maximization cartel, central agency sets the:

A. Output

B. Input

C. Demand

D. Price

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4

The elliptical isoquant represents the:

A. Economic combinations of labor and capital

B. Uneconomic combinations of labor and capital

C. Both a and b

D. None of the above

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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

When total revenues equal to total opportunity cost then the firm will earn:

A. Abnormal profit

B. Zero profit

C. Normal profit

D. Negative profit

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4

Cournot equilibrium is attained where two reaction curves:

A. Repel each other

B. Represent each other

C. Intersect each other

D. None of the above

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4

Production is a function of:

A. Profits

B. Costs

C. Inputs

D. Price

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4

The Law of Equi-Marginal Utility refers to:

A. Marginal utility of commodity X

B. Marginal utility of commodity Y

C. Marginal utility per rupee spent on X and Y commodities

D. None of the above

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4

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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4

The production possibility curve (PPC) is concerned with:

A. Resources of the economy

B. Interests of the economy

C. Limitations of the economy

D. Qualities of the economy

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4

Who introduced the concept of Elasticity of Demand into economic theory?

A. Alfred Marshal

B. Adam Smith

C. Karl Marx

D. George Stigler

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4

Scarcity is:

A. A relative term

B. An economic term

C. A dynamic term

D. As a whole term

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4

Which of the following is not a feature of isoproduct curves?

A. Are downward sloping to the right

B. Show different input combination producing the same output

C. Intersect each other

D. Are convex to the origin

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4

In case of budget line, we get pairs of two goods where consumers income is:

A. Fully spent

B. Half spent

C. Partially spent

D. Correctly spent

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4

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

A. Downward

B. Upward

C. Horizontal

D. Straight line

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4

In the long-run competitive equilibrium:

A. There is tendency for firms to enter but not leave the industry

B. Firms have no tendency either to enter or to leave the industry

C. Some firms may enter while the others may leave the market even after the equilibrium of the industry

D. Entry or exit of the firms cannot be predicted

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4

If a new production technology for producing compact discs is developed and new firms are attracted to this field:

A. The supply curve will shift down or right

B. The supply curve will shift up or left

C. Both demand and supply curve shifts would occur

D. None of the above

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4

The relationship between price effect, income effect and substitution effect is:

A. P.E = S.E + I.E

B. S.E = P.E +I.E

C. I.E = P.E +S.E

D. S.E = P.E +2I.E

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4

In monopoly:

A. The producer will often produce a volume that is less than the amount which would maximize the social welfare.

B. The producer will often produce a volume that is more than the amount which would maximize the social welfare.

C. The consumers will often consume a volume that is more than the amount which would maximize the social welfare.

D. None of the above

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4

Nash equilibrium says:

A. I am doing the best, I can given what you are doing

B. You are doing the best, you can given what I am doing

C. Both a and b

D. None of the above

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4

For the equilibrium of the firm and the industry in the short period in a competitive market, the condition is:

A. P = AC

B. P = MC

C. AC = MC

D. MC = TR

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4

If the commodity is normal then fall in price will result in:

A. Increase the quantity demanded

B. Fixed the quantity demanded

C. Decrease the quantity demanded

D. None of the above

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4

AR curve under perfect competition:

A. Slopes downwards to the right

B. Slopes upward to the right

C. Is vertical to the x-axis

D. Is horizontal to the x-axis

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4

Any straight line supply which cuts the x-axis will have:

A. Zero elasticity

B. An elasticity greater than one

C. Unitary elasticity of supply

D. An elasticity less than one

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4

The competitive equilibrium leads to:

A. The firms producing with excess capacity

B. The firms producing at their minimum costs

C. Firms producing at a cost higher than the minimum

D. Some firms producing under decreasing costs and others under increasing costs

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4

In case of straight-line isoquant, the factors are not substituted because they are each others:

A. Imperfect substitutes

B. Perfect substitutes

C. Complements

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

Inputs or Factors of production are defined as:

A. Productive resources such as labor and capital equipment that firms use to manufacture goods and services are called inputs or factors of production

B. Unproductive resources that do not take part in production process are called inputs or factors of production

C. Firms own resources are called inputs or factors of production

D. None of the above

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4

Identify the author of The Social Framework:

A. R.G.D.Alien

B. J.R.Hicks

C. A.C.Pigou

D. None of the above

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4

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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In the modern theory of costs, the level of production which the firm considers feasible is known as:

A. Input factor

B. Heavy factor

C. Output factor

D. Load factor