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4

When price increases and with it the total outlay on a commodity also increases, 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

A market demand curve presumes that:

A. All consumers are alike

B. Incomes of all consumers is the same

C. Tastes of all consumers are the same

D. Consumers differ in taste, incomes and other matters

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4

Cardinal approach includes arranging:

A. The different combinations of X and Y higher and lower without actually measuring the difference of utility between them

B. The different combinations of X and Y higher and lower and measuring the difference of utility between them

C. Different combination of X, Y and Z

D. None of above

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4

We get constant returns to scale when:

A. a = ½

B. � = ½

C. Both of them

D. None of them

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4

We can obtain consumers demand curve from:

A. Income Consumption Curve (ICC)

B. Engels Curve

C. Price Consumption Curve (PCC)

D. Production Possibility Curve (PPC)

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4

The shape of the TC curve is:

A. U

B. V

C. P

D. S(inverted)

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4

Under Bandwagon effects, people use those goods which are used by their:

A. Friends

B. Relatives

C. Family

D. All of them

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4

Efficient allocation of resources is likely to be achieved under:

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Any market form

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4

Quantity demanded or supplied is measured in:

A. Monetary units

B. Physical units

C. Relative units

D. Constant units

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4

Ceteris paribus clause in the law of demand means:

A. The price of substitute does not change

B. The taste of the consumer does not change

C. The income of the consumer does not change

D. All of the above

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4

A firm considering what type of new plant to build is involved in a:

A. Immediate-run decision

B. Market period decision

C. Short-run decision

D. Long-run decision

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4

Price discrimination is possible:

A. When elasticities of demand in different markets are the same at the ruling price

B. When elasticities of demand are different in different markets at the ruling price

C. When elasticities cannot be known

D. When elasticities of demands are zero in different markets at the rulling price

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4

An increase in the supply of a commodity is caused by:

A. Improvements in its technology

B. Fall in the prices of other commodities

C. Fall in the prices of factors of production

D. All of the above

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4

The advantage of using indifference curves rather than marginal utilities is:

A. We do not need to attach util values to consumption

B. Consumers can attain higher utility

C. It takes into account how much income the household has

D. We can determine how much of one good the consumer is willing to sacrifice in order to consume one more unit of another

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4

In monopolistic competition, the firms have to face:

A. Same cost conditions

B. Different cost conditions

C. Same price conditions

D. Same products conditions

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4

Economics is a:

A. Physical science

B. Social science

C. Natural science

D. Basic science

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4

Which of the following formulae explain the term average revenue?

A. Total units /No. of Revenues

B. Total Revenue/No. of Units

C. Marginal Revenue × Units

D. Total Units/ Price

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4

The kink demand curve faced by an oligopolist is based on the assumption that:

A. Competitors will follow a price increase but not a price cut

B. Competitors will follow a price increase as well as a price cut

C. Competitors will ignore both a price increase and a price cut

D. Competitors will ignore a price increase but will follow a price cut

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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 slope of the iso-cost line (budget line) is determined by:

A. Pricing of two factors

B. Productivity of the two factors

C. Degree of substitutability of two factors

D. None of the above

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4

If the commodity is normal then the Income Effect (I.E) and the Substitution Effect (S.E):

A. Both move together and reinforce each other

B. One moves and the other remains constant

C. Move in the opposite direction and neutralize each other

D. Both remain constant

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4

In Nash equilibrium, a player:

A. Deviates from his strategy

B. Does not deviate from his strategy

C. Does not think in a good way

D. None of the above

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4

If the supply and demand increases equally, the price will:

A. Rise

B. Fall

C. Remain unchanged

D. Change depending on respective elasticities

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4

The point where the supply and demand curves intersect on a graph determines:

A. Market price

B. Equilibrium price

C. Long-term price

D. Short-term price

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4

Selling costs are incurred under monopolistic competition to:

A. Attract more customers

B. Prevent its customers from going to others

C. Establish superiority of its product on the others

D. All of the above

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4

Increasing returns is not caused by:

A. Specialization of labor

B. Technological advancement

C. Marketing economics

D. Varying factor proportions

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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 ordinal approach was presented by:

A. Marshal

B. J.R.Hicks

C. Adam smith

D. Rostow

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4

Under price discrimination, the buyers must:

A. Be similar

B. Not be similar

C. Equal

D. None of the above

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4

When in a market, the number of buyers is very large and the number of sellers is very small, it is known as:

A. Monopoly

B. Oligopoly

C. Imperfect competition

D. Perfect competition

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4

Which of the following is an implicit cost of production?

A. Wages of the labor

B. Charges of electricity

C. Interest on owned money capital

D. Payment for raw materials