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4

When the consumer is in equilibrium not only his income is fully spent, but the ratio of marginal utility and price is:

A. Increased

B. Equalized

C. Prominent

D. Zero

Correct Answer :

B. Equalized


in consumer equilibrium the ratios of marginal utilities of commodities and the prices are equalized .i.e, MUx /Px = MUy /Py = MUz /Pz

Related Questions

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4

Marshalls definition of economics was strongly criticised by:

A. Adam Smith

B. Prof.Pigno

C. Prof. Robbins

D. J.B.Clark

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4

The optimum level of output in long run takes place where:

A. LAC = LMC

B. SAC = LMC

C. SAC =MC

D. SAC =LAC

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4

Supply of commodity is a:

A. A stock concept

B. A flow concept

C. Both stock and flow

D. None of the above

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4

To calculate the Economic Profit we must deduct which of the following cost from our total revenues?

A. Opportunity cost

B. Direct cost

C. Rent cost

D. Wage cost

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4

Competitors in monopolistic competition have full control over:

A. The price of their product

B. Product quality

C. The shape of the market demand curve

D. The elasticity of product substitution

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4

The price under perfect competition is settled by:

A. Producers

B. Sellers

C. Buyers

D. Sellers and buyers

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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

According to law of Equi-Marginal Utility when price of commodity falls then we bought:

A. More units

B. Less units

C. Same units

D. Zero units

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4

The main objective of the firm is to:

A. Face losses

B. Avoid losses

C. Bear losses

D. Make economic decisions

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4

Income effect operates through an increase

A. In nominal income

B. In money income

C. In wages

D. In real income because of the fall of price of a commodity

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4

The main contribution of Prof. Lord Keynes is in the field of:

A. Determination of the rate of interest

B. Determination of the market price

C. Determination of the wage rate

D. Determination of production of firm

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4

The optimal strategy for a player is termed as:

A. Recessive strategy

B. Dormant strategy

C. Dominant strategy

D. Hidden strategy

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4

A demand schedule is shown as:

A. A function of price alone

B. A result of change in tastes

C. A result of increase in the size of the family

D. None of the above

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4

According to Chamberline, in monopolistic competition, differentiation is determined by:

A. Choices

B. Preferences

C. Both a and b

D. None of the above

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4

All the firms with identical costs under perfect competition well, in the long-run, earn only:

A. Normal profits

B. Abnormal profits

C. Differential profits

D. No profits

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4

4.The Law of Diminishing Returns according to the modern view, applies to:

A. Agriculture

B. All fields of production

C. Industry

D. Services

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4

If demand is elastic and supply is inelastic then the burden of a tax on the good will be:

A. Borne mostly by producers

B. Borne mostly by consumers

C. Borne mostly by government

D. Shared equally by producers and consumers

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4

In which case the elasticity shown by the different points of a curve is the same?

A. A straight line curve

B. A downward sloping demand curve

C. A rectangular hyperbola demand curve

D. None of the above

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4

Identify the work of Irving Fisher:

A. Policy on trade

B. Policy against inflation

C. The making of index numbers

D. Labor theory

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4

A price is a ratio of exchange between:

A. Money and exchange

B. Quantity and production

C. Production and consumption

D. Money and quantity

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4

Supply of a commodity refers to:

A. Total stock of a commodity in the market

B. Total production of a commodity during the year

C. Total production plus total stock of a commodity

D. Amount of commodity offered for sale at some price at a particular place and time

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4

The goods sold by firms under monopolistic competition are technological as well as:

A. Economic complements

B. Economic substitutes

C. Economic inferiors

D. None of the above

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4

In respect of which of the following category of goods is consumers surplus highest?

A. Giffen goods

B. Necessities

C. Luxuries

D. Prestige goods

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4

In second degree price discrimination, monopolist takes away :

A. All of the consumer surplus

B. All of the producer surplus

C. Some part of the consumer surplus

D. None of them

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4

An indifferent curve shows:

A. That how many utils are obtained from consuming different bundles of commodities

B. Different collections of two commodities the consumer considers to be of equal value

C. That if price increases there will be an increases in demand

D. None of the above

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4

The law of variable proportions comes into being when:

A. All factors are variable

B. There is a fixed factor and variable factor

C. All factors are non-variable

D. None of the above

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4

The main contribution of David Ricardo is in the field of:

A. Wages of labor

B. Factor pricing

C. Theory of rent

D. Determination of the rate of interest

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4

If the demand for good is more elastic and government levied a tax per unit of output, the price per unit for the firm would:

A. Rise by the amount of the tax

B. Rise by more than the amount of the tax

C. Rise by less than the amount of the tax

D. Remain the same

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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

If as a result of an increase in prices, total outlay (expenditures) on a commodity decreases, its price-elasticity of demand is:

A. Perfect elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unit elastic

D. Relatively inelastic (less than one elasticity)