Using Gabriel's budget line, and his indifference curves between horseback riding lesson and baseball lessons, and then changing of each activity holding his income constant, which of the following can be derived?
A. Gabriel's supply curve for each activity
B. Gabriel's net gain for each activity
C. Gabriel's demand curve for each activity
D. Gabriel's marginal benefit for each activity
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According to Malthus population theory, which one of the following statement are not correct?
A. Population shows a tendency to grow faster than the means of subsistence
B. There is a direct relationship between standard of living and population
C. Increasing populations can be stopped only by natural barriers
D. Natural restrictions are those restrictions which are imposed by nature to stop population growth
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A particular price level, there are no forces tending to move it either up or down, it means
A. Both 1 and 4
B. 1, 2 and 4
C. Both 1 and 3
D. Only 4
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The Bergson criteria are related to
A. Labour Economics
B. Industrial Economics
C. Welfare Economics
D. Agricultural Economics
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The economic environment of a business includes
A. Economic system
B. Economic policies
C. Economic conditions
D. All of the above
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If the price was fixed below the equilibrium price there would be
A. excess supply
B. excess demand
C. equilibrium
D. downward pressure on prices
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A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost, and the price is
A. Greater than average total cost
B. Less than average total cost
C. Greater than average variable cost
D. Less than average variable cost
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In which of the following commodities, when a consumer spends so much that negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped?
A. Inferior goods
B. Superior goods
C. Giffen goods
D. Normal goods
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If the average cost is falling then:
A. Marginal cost will increase
B. Marginal cost will decrease
C. Marginal cost will be equal to the average cost
D. It is impossible to say whether marginal cost is rising or falling
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The concept of price elasticity of demand measures
A. the slope of the demand curve
B. the number of buyers in a market
C. the extent to which the demand curve shifts as the result of a price decline
D. the sensitivity of consumers to price change
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In perfect competition,
A. short run abnormal profits are competed away by firms leaving the industry
B. short run abnormal profits are competed away by firms entering the industry
C. short run abnormal profits are competed away by the government
D. short run abnormal profits are competed away by greater advertising
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Which of the following is not a U shaped curve
A. Average fixed cost curve
B. Average variable cost curve
C. Average total cost curve
D. Marginal cost curve
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Investment multiplier can be derived from (symbols have simple meaning)
A. 1 − Δ S Δ C 1
B. 1 − Δ Y Δ C 1
C. 1 + Δ S Δ C 1
D. 1 + Δ Y Δ C 1
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The supply function will move downwards to the right, if the MC of all the firms in a perfectly competitive industry were to
A. decrease
B. remain unchanged
C. increase
D. None of these
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If Q1 = 20,000, Q2 = 25,000, P1 = Rs. 10, P2 = Rs. 8 the price elasticity of demand will be proportionately to?
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The conditions of long period equilibrium for a firm operating under perfect competition are
A. Only 1
B. Both 1 and 3
C. 2, 3 and 4
D. All of the above
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Which among the following has the least price elasticity of demand?
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Imagine a country which has certain available resources and techniques. Assume that the country is producing two commodities A and B. Now if you draw a Production Possibility curve it will slope downwards. It will be
A. A convex curve
B. A concave curve
C. A straight line curve
D. A rectangular hyperbola
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Generally, the profits are maximised in the short-run at the point at which
A. MC = MR
B. MR = 0
C. MR is negative
D. MC = 0
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Consider the demand curve depicted in the following diagram-
The elasticities of demand at prices P
1 and P
2 are different because, at these prices
A. slopes are different
B. prices are different
C. quantities are different
D. price-quantity ratios are different
Select an option to see the answer and solution.
