Total utility and price are:
Directly related
Unrelated
Closely related
Negatively related
Correct Answer :
B. Unrelated
Related Questions
Which of the following curves is a rectangular hyperbola?
ATC
AVC
AFC
None of the above
The proportional demand curve in monopolistic competition (also in kinked demand curve model), is like industry demand curve in:
Monopolistic competition
Imperfect competition
Monopoly
Perfect competition
The difference between the average total cost and average variable cost as output increases will:
Increases
Remains the same
Diminishes
Zero
The model which gives us information about price and output changes in different periods is:
Stable cobweb model
Perpetual oscillation
Both(a) and(b)
None of them
In a perfectly competitive market, suppliers must know:
The incomes of consumers
The price of the good
What other commodities households could substitute for the good
Consumers expectations of the future
If by doubling all inputs in the long run output is less than double, it is a case of:
Increasing returns to scale
Decreasing returns to scale
Constant returns to scale
Variable returns to scale
In the case of an inferior commodity, the income-elasticity of demand is:
Positive
Unitary
Negative
Infinity
Identify the author of The Social Framework:
R.G.D.Alien
J.R.Hicks
A.C.Pigou
None of the above
Elasticity of supply means change in supply due to change in:
Price of the commodity
Conditions of supply
Taste of the consumer
Demand for the commodity
The isoquant approach is based upon:
One output
One input
Two outputs
Two inputs
If the commodity is inferior then Income Effect (I.E) is:
Negative
Positive
Zero
Infinite
In cournot model, each firm expects a reaction from his rival but the expected reaction is not:
important
materialized
accepted
rejected
MC is given by:
The slope of the TVC curve
The slope of the TVC curve but not the slope of the TC curve
The slope of the TC curve but not by the slope of the TVC curve
Either the slope of the TVC curve or the slope of the TC curve
In case of monopoly, TR curve rises at a:
Constant rate
Decreasing rate
Increasing rate
None of the above
The right of individuals to control productive resources is known as:
Monopoly
Private property
Workable competition
Oligopoly
Marginal utility (MU) always:
Increases
Decreases
Remains constant
None of above
The indifference curve technique:
Helps in separating the income effect and the substitution effect
Does not help in separating the two effects
Mixed up the two effects
None of the above
With firms having cost differences under perfect competition, a firm, which earns normal profit in the long-run is called:
An optimum firm
A representative firm
An oxford firm
A marginal firm
Income-demand curve shows:
Income-expenditure relationship
Income-cost relationship
Income-price relationship
Income-quantity relationship
Production function relates:
Cost to input
Wages to profits
Cost to output
Inputs to output
In perfect cartel, the:
Perfect competition price is charged
Monopoly price is charged
Monopoly price is not charged
None of the above
The point on which the average cost is minimum in a firm, short run average cost curve will also be the minimum cost point on the firms long-run average cost curve. This is true:
Always
Never
When LAC is falling
Only at that level of output when LAC is at its minimum
For the given production function, technical efficiency is defined as:
Sets of points relating production function that maximizes output given input (labor) i.e. Q = f(L, K)
Sets of points relating production function that produces less output than possible for a given set of input (labor) i.e. Q < f(L, K)
Use of imported technology
None of the above
The basic and essential economic problems in a community are related to choice and:
Freedom
Scarcity
Social class
Politics
The slope of budget line shows the price ratios of:
Many goods
Few goods
Two goods
Three goods
In real life firms:
Loss because of past
Learn from past
Destroy because of past
None of the above
The reserve capacity in administration is advocated on the ground that demand for a product will:
Decrease in the future
Increase in the future
Remain constant
None of the above
The budget-line is also known as the:
Iso-utility curve
Production possibility line
Isoquant
Consumption possibility line
Revealed Preference Theory was presented by:
Ricardo
Adam Smith
Pigou
Samuelson
According to M.Kalecki, the true measure of the degree of monopoly power is the:
Ratio between price and marginal cost
Extent of monopolistic profit enjoyed by him
Cross-elasticity of demand for the product of the monopolist
Price charged by the monopolist minus marginal cost of production