Home
Current Affairs January 2024

What is the correct answer?

4

With an increase in income, consumer is expected to buy more of:

A. An inferior good

B. A giffen good

C. A normal(or superior) good

D. None of the above

Correct Answer :

C. A normal(or superior) good


Related Questions

What is the correct answer?

4

In the long run average costs curve, a firm can change:

A. Labour

B. Capital

C. Both of them

D. None of them

What is the correct answer?

4

When a consumer is in equilibrium then slope of indifference curve is:

A. Equal to the slope of budget line

B. Greater than the slope of budget line

C. Smaller than the slope of budget line

D. Parallel to the slope of budget line

What is the correct answer?

4

In sweezy model (kinked demand curve model), the role of MC curve:

A. Can be ignored

B. Cannot be ignored

C. Partially be ignored

D. None of the above

What is the correct answer?

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

What is the correct answer?

4

The model which gives us information about price and output changes in different periods is:

A. Stable cobweb model

B. Perpetual oscillation

C. Both(a) and(b)

D. None of them

What is the correct answer?

4

The isoquant approach is:

A. Classical approach

B. Keynesian approach

C. Neo-classical approach

D. Modern approach

What is the correct answer?

4

The act of producing the output from more than one plant is concerned with:

A. Monopoly

B. Multi-plant monopoly

C. Bilateral monopoly

D. Price discrimination

What is the correct answer?

4

The Law of Diminishing Marginal Returns can be explained in terms of:

A. Economies and diseconomies of production

B. Indivisibility of factors

C. Fixity of supply of land

D. Variable factor productivity

What is the correct answer?

4

Law of variable proportions is based on the assumption of:

A. Short period of time

B. Long period of time

C. Timeless production relationship

D. All of the above

What is the correct answer?

4

Contraction in demand occurs when:

A. Price increases and demand decreases

B. Price increases but demand also increases

C. Price remains constant but demand falls down

D. Price falls down but demand remains constant

What is the correct answer?

4

Some economists refer to iso-product curves as:

A. Engels curve

B. Production indifference curve

C. Budget line

D. Ridge line

What is the correct answer?

4

The ordinal approach was presented by:

A. Marshal

B. J.R.Hicks

C. Adam smith

D. Rostow

What is the correct answer?

4

The main contribution of Malthus is in the field of:

A. Consumption expenditure

B. Theory of population

C. Division of labor

D. Theory of demand

What is the correct answer?

4

In substitution effect, we:

A. Move to another indifference curve

B. Move along given indifference curve

C. Move to a higher indifference curve

D. Move to a lower indifference curve

What is the correct answer?

4

The main contribution of Prof. R.G.D.Allen is in the field of:

A. fixation of price

B. Arc elasticity of demand

C. Cross elasticity of demand

D. Wage theory

What is the correct answer?

4

Which of the following would be least likely to cause a consumer to eat less beef?

A. An increase in the price of beef

B. An increase in the price of lamb

C. A reduction in the consumers income

D. A reduction in the price of lamb

What is the correct answer?

4

In Revealed Preference Theory, Samuelson proves P.E = S.E + I.E :

A. With using indifference curves

B. With using MRS

C. Without using indifference curve

D. None of the above

What is the correct answer?

4

In collusive olligopoly, the firms may make:

A. Open agreements

B. Secret agreements

C. Both a and b

D. None of the above

What is the correct answer?

4

Indifference curve represents:

A. Only two commodities

B. Only three commodities

C. More than three commodities

D. Any number of commodities

What is the correct answer?

4

In terms of price, the indirect utility function may be:

A. Concave

B. Quasi-convex

C. Straight line

D. Convex

What is the correct answer?

4

Regarding economic decisions, economics of uncertainty identifies:

A. No risks

B. Risks

C. Safety

D. None of the above

What is the correct answer?

4

At the point where a straight line demand curve meets the quantity axis (x-axis), elasticity of demand is:

A. Equal to zero

B. Equal to one

C. Equal to infinite

D. More than one

What is the correct answer?

4

A firm can never produce in the middle area of input space, in case of:

A. Concave isoquant

B. Convex isoquant

C. Constant isoquant

D. None of the above

What is the correct answer?

4

The average cost curve is a geometrical illustration of:

A. Hydraulic function

B. Cubic function

C. Pentagonic function

D. Quadratic function

What is the correct answer?

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

What is the correct answer?

4

The proportional demand curve in monopolistic competition (also in kinked demand curve model), is like industry demand curve in:

A. Monopolistic competition

B. Imperfect competition

C. Monopoly

D. Perfect competition

What is the correct answer?

4

Other things remaining the same, when a consumers income increases his equilibrium point moves to:

A. A lower indifference curve

B. A lower PPC curve

C. Remains on same indifference curve

D. A higher indifference curve

What is the correct answer?

4

Change in quantity demanded (expansion and contraction of demand) is:

A. Due to change in price while other factors remain constant

B. Due to change in factors other than price

C. Both a and b

D. None of the above

What is the correct answer?

4

Ordinal approach includes arranging:

A. The different combinations of X and Y in any way the consumer wants

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

C. The different combinations of X and Y higher and lower and not measuring the difference of utility between them

D. None of above

What is the correct answer?

4

If demand increased and supply decreased then:

A. Quantity exchanged might rise or fall and price would rise

B. Quantity exchanged would rise and price would fall

C. Quantity exchanged would rise and price might rise or fall

D. Both quantities exchanged and price would rise