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4

When price decreases and with it the total outlay on a commodity also decreases, it is a case of:

A. Perfect elasticity (infinitely elastic)

B. Relative elasticity (greater than one elasticity)

C. Perfect inelasticity (zero elasticity)

D. Relative inelasticity (less than one elasticity)

Correct Answer :

D. Relative inelasticity (less than one elasticity)


Related Questions

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4

The least cost combination of factors x , y and z will generally be the point at which:

A. Price of x = Price of z Price of y Price of x

B. MP of x = MP of y Price of x Price of x

C. MP of x = MP of y = MP of z Price of x Price of y Price of z

D. MP of x = MP of y = MP of z

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4

The budget constraint can be written as:

A. X.PX + Y.PY = 1

B. X.PX + Y.PY < 1

C. X.PX + Y.PY > 1

D. X.PX + Y.PY = 0

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4

Elasticity (E) expressed by the term, 8 >E>1, is:

A. Perfectly elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unitary elastic

D. Relatively inelasticity (less than one elasticity)

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4

The marshallian demand curve includes:

A. Substitution Effect

B. Income Effect

C. Both substitution and income effect

D. None of them

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4

A demand curve is not related to:

A. The price of the commodity

B. The time period

C. The price of substitutes

D. Any of the above

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4

The slope of an iso-quant represents:

A. MRS

B. MRT

C. MRTS

D. MRPS

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4

The right of individuals to control productive resources is known as:

A. Monopoly

B. Private property

C. Workable competition

D. Oligopoly

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4

Production indifference curve (isoquant) is a curve which shows:

A. Equal level of output

B. Unequal level of outputs

C. Equal level of inputs

D. Unequal level of inputs

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4

The concept of industry in monopolistic competition has been replaced by:

A. Firm

B. Product group

C. Producers

D. Shopkeepers

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Cross-elasticity of demand or cross-price elasticity between two complements will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

When SAC curve rises, SMC curve lies its:

A. Below

B. Above

C. Equal level

D. None of the above

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4

In the long run:

A. All factors can be used in different proportions

B. Management can be re-organized

C. A firm can experience returns to scale

D. All of the above

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4

The indifference curve technique:

A. Helps in separating the income effect and the substitution effect

B. Does not help in separating the two effects

C. Mixed up the two effects

D. None of the above

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4

Rent is a creation of value, not of wealth who made this observation?

A. Adam Smith

B. David Ricardo

C. Alfred Marshal

D. A.C.Pigou

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4

Under perfect competition, the average revenue, marginal revenue and price are shown:

A. By a same single curve

B. By three different curves

C. By downward sloping curve

D. None of the above

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4

Most of the supply curves with which the average consumer deals are:

A. Vertical

B. Horizontal

C. Controlled by the largest producers

D. Unaffected by inflation

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4

In Prisoners Dilemma, both the prisoners are interrogated:

A. Separately in different cells

B. Collectively in different cells

C. Collectively in same cell

D. Separately in same cell

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Social costs equal private costs when:

A. Marginal cost is zero

B. Total cost is zero

C. External costs are zero

D. Average costs are zero

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4

If cross-elasticity of one commodity for another turns out to be zero, it means they are:

A. Close substitutes

B. Good complements

C. Completely unrelated (independent goods)

D. None of the above

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4

A monopolist is able to maximize his profit when:

A. His output is maximum

B. He charges a high price

C. His average cost is minimum

D. His marginal revenue is equal to marginal cost

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4

Under pure monopoly, there will be:

A. No distinction between firm and industry

B. One firm and no industry

C. No firm and no industry

D. None of the above

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4

According to M.Kalecki, the true measure of the degree of monopoly power is the:

A. Ratio between price and marginal cost

B. Extent of monopolistic profit enjoyed by him

C. Cross-elasticity of demand for the product of the monopolist

D. Price charged by the monopolist minus marginal cost of production

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4

The difference between average total cost and average fixed cost shows:

A. Normal profits

B. Implicit costs

C. Variable costs

D. Opportunity costs

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4

MRSxy measures:

A. The amount of Y a consumer is willing to give up to obtain one additional unit of X and still remain on the same indifference curve

B. The amount of X a consumer is willing to give up to obtain one additional unit of Y and still remain on the same indifference curve

C. The amount of Y a consumer is willing to give up to obtain one additional unit of X and move to a higher indifference curve

D. The amount of X a consumer is willing to give up to obtain one additional unit of Y and move to a higher indifference curve

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4

Market allocation fundamentally relies upon:

A. A system of relative prices

B. A belief that employees work for the good of society

C. Government ownership of the means of production

D. Moral incentives to encourage productive efficiency

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Cross-elasticity of demand or cross-price elasticity between two independent goods will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

The nominal income of a consumer is income in terms of:

A. Goods

B. Goods and services

C. Goods and services it can purchased

D. Monetary units

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4

The basic subject matter of economics is:

A. Money

B. Capital resources

C. Scarcity

D. Inflation

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4

Price-taker firms:

A. Advertise to increase the demand for their product

B. Do not advertise, because most advertising is wasteful

C. Do not advertise because they can sell as much as they want at the current price

D. Who advertise will get more profits than those who do not

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4

Law of Returns to Scale shows:

A. Technical relationship between input of a variable factor and the resulting output

B. Any economic relationship between input and output

C. An output maximizing relationship

D. A relationship with input changing and corresponding changes in output