Positive Economics
Normative Economics
Micro Economics
Development Economics
B. Normative Economics
Reaction of rival firms
Reactions of people
No reaction of rival firms
None of the above
MR>AR
MR=AR
AR=0
Increase in demand for Y
Decrease in demand for Y
Decrease in demand for both X and Y
No change in demand for Y
Average fixed cost increases sharply
More production yields lower per unit price
The law of variable proportions applies to short run production
Sales expenses become much larger
The law of diminishing marginal utility
The law of demand
The Law of Diminishing Returns
The law of supply
Normal profits
Abnormal profits
Differential profits
No profits
Money and exchange
Quantity and production
Production and consumption
Money and quantity
Standardized product
Differentiate product
Two firms
No entry
L-shaped
J-shaped
M-shaped
V-shaped
Restricted entry and exit of the firms
Semi free exit but absolute free entry
Free entry but restricted exit of the firms
Free entry and free exit of the firms
Planned products curve
Planned material curve
Planned costs curve
Planned sales curve
greater than zero
less than one
greater than one
less than one
L-shaped
U-shaped
V-shaped
Both a and b depending on situation
Distribution
Exchange
Market structure
Consumer behaviour
David Ricardo
Adam Smith
T.R.Malthus
J.S.Mill
Price theory
Demand theory
Supply theory
Income theory
Become equal
Decrease
Become constant
Increase
Differentiated goods
Homogeneous goods
Advertised goods
Distress sale of goods
Grocery stores
High-Tech industries
Automobiles
Construction
Consumers prefer to have less satisfaction than more of both commodities
As more and more of one commodity is obtained, less and less of the other must be given up to keep satisfaction constant
The total satisfaction obtained along an indifference curve decreases at an increasing rate
None of the above
Indifferent
Different
In equilibrium
Dominant
Total utility to fall and marginal utility to increase
Total utility and marginal utility both to increase
Total utility to fall and marginal utility to become negative
Total utility to become negative and marginal utility to fall
Constant
Less elastic
More elastic
Perfectly elastic
Constant returns to scale
Increasing returns to scale
Decreasing returns to scale
None of the above
Money
Capital resources
Scarcity
Inflation
Price increases and demand decreases
Price increases but demand also increases
Price remains constant but demand falls down
Price falls down but demand remains constant
Consumers
Employees
People
Labor
Under perfect competition
Under monopoly
Under imperfect competition
Under all the above market forms
Alfred Marshal
J.M.Keynes
Paul A.Samuelson
A.C.Pigou