The elasticity of demand is equal to slope of demand function divided by:
Average demand function
Qualified demand function
Constructive demand function
Relative demand function
Correct Answer :
A. Average demand function
Related Questions
Identify the work of T.W.Schultz:
Transforming Traditional Agriculture
Productivity and Technical Change
Jobs, Poverty and the Green Revolution
Causes of Poverty
The cost that a firm incurs in purchasing or hiring any factor of production is referred to as:
Explicit cost
Implicit cost
Variable cost
Fixed cost
Technological efficiency:
Is the same as economic efficiency
Is achieved when the output produced is maximum for the given level of inputs
Means that there is only one way to produce a given quantity of output
None of the above
A monopoly producer usually earns:
Abnormal profits
Only normal profits
Neither profits nor losses
Profits and losses which are uncertain
Under price discrimination, the buyers must:
Be similar
Not be similar
Equal
None of the above
The games which played by players again and again are called:
Repeated games
Cooperative games
Non-cooperative games
Constant games
The main objective of the firm is to:
Face losses
Avoid losses
Bear losses
Make economic decisions
The long run average cost curve is the envelope of:
SACs
LACs
SMCs
LMCs
Marshallian approach is also known as:
Cardinal approach
Ordinal approach
Consumer approach
Production approach
All money costs can be regarded as:
Social costs
Opportunity costs
Explicit costs
Implicit costs
The kinked demand curve comes into being where:
Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other
Proportional demand curve (PDC) and individual demand curve (IDC) are parallel to each other
Proportional demand curve (PDC) and individual demand curve (IDC) repel each other
None of the above
The firm is said to be in equilibrium when the difference between revenue and cost is:
Maximum
Minimum
Zero
One
In sweezy model (kinked demand curve model), the overall increase in costs of production:
Do not effect equilibrium
Affect equilibrium
Both a and b
None of the above
The shape of the TC curve is:
U
V
P
S(inverted)
The situation in between the extremes of the govt. controlled, planned economy and the perfectly free, unplanned economy is known as:
Developed economy
Laissez-fair economy
Mixed economy
Capitalistic economy
In Nash Equilibrium:
Each player has a dominant strategy
No players have a dominant strategy
At least one player has a dominant strategy
Players may or may not have dominant strategies
In the case where two commodities are good substitutes then cross elasticity will be:
Positive
Unitary
Negative
Infinite
With elasticity of demand, the:
Negative sign is ignored
Positive sign is ignored
None of them
Both of them
The word ECONOMICS is derived from the Greek terms meanings:
Political economy
Household Management
Production and consumption
Financial Accounting
The nominal income of a consumer is income in terms of:
Goods
Goods and services
Goods and services it can purchased
Monetary units
In case of monopoly, the price charged against the additional unit is:
Not different
Same
Not same
Zero
The game theory was basically presented by:
Ricardo
Marshal
Neomann and Morgenstern
Karl Marx
The demand curve of a firm in monopolistic competition is:
Negatively sloped
Vertical
Horizontal
Positively sloped
The competitive equilibrium leads to:
The firms producing with excess capacity
The firms producing at their minimum costs
Firms producing at a cost higher than the minimum
Some firms producing under decreasing costs and others under increasing costs
Cartel is associated with:
Collusive oligopoly
Non-collusive oligopoly
Cartel
Perfect competition
If Cobb-Douglas production function is homogeneous of degree less than one (n<1), then it shows:
Constant returns to scale
Increasing returns to scale
Decreasing returns to scale
None of the above
In 1890, Principles of Economics was written by:
Prof. Robbins
Alfred Marshal
Prof. Senior
Adam Smith
Duopoly is a market where there are:
Two sellers
A few sellers
Five sellers
Many sellers
Karl Marx:
Led the Russian Revolution
Provided the theoretical basis for socialism(communism)
Developed his theory in response to the Great Depression of the 1930s
None of the above
When a consumer reached at the point of saturation then marginal utility (MU) is:
Negative
One
Positive
Zero