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What is the correct answer?

4

When there is decrease in demand the demand curve:

A. Moves (shifts) towards the axis

B. Moves (shifts) away from the axis

C. Remains unchanged

D. All of the above

Correct Answer :

A. Moves (shifts) towards the axis


Related Questions

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4

In the range of excess capacity, the average costs are:

A. Maximum

B. Minimum

C. Equal to one

D. Equal to zero

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4

Who stated explicitly for the first time the Law of Camparative Costs?

A. David Ricardo

B. Adam Smith

C. James Mill

D. A.C.Pigou

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4

The name of the system of direct exchange is:

A. Price system

B. Barter system

C. Islamic economic system

D. Socialistic system

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4

In case of budget line, we get pairs of two goods where consumers income is:

A. Fully spent

B. Half spent

C. Partially spent

D. Correctly spent

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4

Total costs are:

A. TFC TVC

B. TFC/TVC

C. TVC/TFC

D. TFC +TVC

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4

Contraction of demand means:

A. Less quantity demanded at the same price

B. Less quantity demanded at a higher price

C. Less quantity demanded at a lower price

D. None of the above

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4

Diminishing returns occur when a firm:

A. Starts incurring losses

B. Uses more and more of one input while holding all other inputs constant

C. Does not utilize its inputs efficiently

D. Cuts down on the quantity of all inputs it uses

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4

The Chamberline model recognizes mutual:

A. Independence of firms

B. Interdependence of firms

C. Independence of individuals

D. Interdependence of materials

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4

Two policy variables, product and selling activities in the theory of firm was introduced by:

A. Chamberline

B. Sraffa

C. Carl marx

D. Robinson

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4

We can find total utility by:

A. Multiplying the number of unit by its marginal utility

B. Adding up the marginal utility of all units

C. Multiplying price by number of units

D. None of the above

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4

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

Marginal utility means:

A. Utility derived from the last unit of production

B. Utility derived from the last unit of a commodity which is being consumed

C. Total utility- Average utility

D. None of the above

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4

In case of monopoly, the slope of MR is:

A. Always three times than the slope of AR

B. Always double than the slope of AR

C. Always equal to the slope of AR

D. None of the above

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4

Firms average and marginal revenues are equal under:

A. Monopoly

B. Perfect competition

C. Oligopoly

D. Monopolistic competition

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4

Given a U shaped average cost curve, the relationship between average cost and marginal cost is such that marginal cost must always be:

A. Falling when average cost is falling

B. Rising when average cost is falling

C. Falling when average cost is rising

D. Rising when average cost is rising

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4

Which of the following statement is wrong?

A. A utility function refers to a particular individual and reflects the tastes of that individual

B. When the tastes of an individual changes, his utility function changes(shifts)

C. Different individuals usually have different tastes and thus have different utility functions

D. Different individuals have same tastes and thus have the same utility function

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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

Economics define technology as:

A. Societys knowledge of production

B. Applied science

C. Knowledge of science and mathematics

D. None of the above

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4

Which of the following is not a feature of isoproduct curves?

A. Are downward sloping to the right

B. Show different input combination producing the same output

C. Intersect each other

D. Are convex to the origin

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4

Using total revenue and total cost, a profit maximizing firm will be equilibrium at a point:

A. Where the gap between the two is the smallest

B. Where the gap between the two is the greatest

C. Where the two become equal

D. None of the above

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4

Used cars are sold in:

A. Perfectly competitive international market

B. Perfectly competitive national market

C. Imperfect international market

D. Imperfect local market

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4

Identify the author of The Social Framework:

A. R.G.D.Alien

B. J.R.Hicks

C. A.C.Pigou

D. None of the above

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4

Of the following, which one is a characteristic of monopolistic competition?

A. Standardized product

B. Differentiate product

C. Two firms

D. No entry

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4

Total Utility (TU) curve:

A. Always rises

B. Always falls

C. First falls and then rises

D. First rises and then falls

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4

The law of Diminishing Marginal Utility implies that the marginal utility of a good decreases as:

A. It gets more expensive

B. A household consumes more of it

C. Preference changes

D. A households income goes up

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4

One common definition of a luxury good is a good with income elasticity:

A. Greater than one

B. Equal to one

C. Less than one but more than zero

D. None of the above

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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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4

The Tit for Tat strategy means cooperation by the 2nd firm if:

A. 1st firm does not cooperate

B. 1st firm cooperates

C. 1st firm collapses

D. None of the above

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4

In substitution effect and income effect:

A. The substitution effect is more certain

B. The income effect is more certain

C. The substitution effect is uncertain

D. The income effect is always positive

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4

Technological efficiency:

A. Is the same as economic efficiency

B. Is achieved when the output produced is maximum for the given level of inputs

C. Means that there is only one way to produce a given quantity of output

D. None of the above