McqMate
101. |
Measurable utility is the postulate of: |
A. | Neo-Classical school |
B. | Ordinalist school |
C. | Behaviourist school |
D. | Keneysians |
Answer» A. Neo-Classical school |
102. |
Which of the following is Gossen’s first law: |
A. | Law of Diminishing Marginal Utility |
B. | Law of Equi Marginal Utility |
C. | Law of substitution |
D. | Law of Diminishing Returns |
Answer» A. Law of Diminishing Marginal Utility |
103. |
In the case of a free good, the consumer will be in equilibrium when: |
A. | MU = P |
B. | MU = 0 |
C. | TU = 0 |
D. | TU =1 |
Answer» B. MU = 0 |
104. |
Change in demand due to a change in the price of related good : |
A. | Cross demand |
B. | Price demand |
C. | Income demand |
D. | None of these |
Answer» A. Cross demand |
105. |
The Price and quantity relationship for an inferior good is: |
A. | Direct |
B. | Inverse |
C. | Positive |
D. | Indirect |
Answer» B. Inverse |
106. |
In the case of normal goods, the quantity demanded varies inversely with: |
A. | Price of good |
B. | Income of the consumer |
C. | Fashion of the good |
D. | Savings |
Answer» A. Price of good |
107. |
Which of the following is a cardinalist approach to demand analysis: |
A. | Marshallian utility analysis |
B. | Indifference Curve Analysis |
C. | Revealed Preference Theory |
D. | None of these |
Answer» A. Marshallian utility analysis |
108. |
The convexity of an indifference curve shows: |
A. | Diminishing MRS |
B. | Increasing MRS |
C. | Constant MRS |
D. | None |
Answer» A. Diminishing MRS |
109. |
A movement from one point to another along an indifference curve makes the satisfaction: |
A. | Increasing |
B. | Decreasing |
C. | Unaltered |
D. | None |
Answer» C. Unaltered |
110. |
In the case of an indifference curve |
A. | dU/dX>dU/dY |
B. | dU/dX = dU/dY |
C. | dU/dX<dU/dY |
D. | dU/dX≤dU/Dy |
Answer» B. dU/dX = dU/dY |
111. |
An Indifference Curve to the right of another represents combinations which are: |
A. | Indifferent |
B. | Preferable |
C. | Inferior |
D. | Superior |
Answer» B. Preferable |
112. |
As moving from left to right through an indifference curve, the MRS of X for Y |
A. | Increases |
B. | Remains the same |
C. | Decreases |
D. | Both A and C |
Answer» C. Decreases |
113. |
The slope of an indifference curve represents: |
A. | Price ratio of good X and Y |
B. | MRTS L,K |
C. | MRSx,y |
D. | MRS |
Answer» C. MRSx,y |
114. |
In the case of perfect complementaries, the MRS between goods is: |
A. | Zero |
B. | Positive |
C. | Negative |
D. | None |
Answer» A. Zero |
115. |
In a combination of X and Y, if price of Y alone changes, the X intercept will : |
A. | Rotate upwards |
B. | Rotate downwards |
C. | Not be changed |
D. | Parallel |
Answer» C. Not be changed |
116. |
At the point of tangency of an indifference curve with a budget line: |
A. | MRSxy =Px/Py |
B. | MRSxy>Px/PY |
C. | MRSxy<Px/PY |
D. | MRSxy≥Px/PY |
Answer» A. MRSxy =Px/Py |
117. |
Commodities bought in larger quantities when income rises are called: |
A. | Normal goods |
B. | Inferior goods |
C. | Giffen goods |
D. | None |
Answer» A. Normal goods |
118. |
Change in demand due to change in relative price alone is called: |
A. | Income effect |
B. | Substitution effect |
C. | Price effect |
D. | Ratchet effect |
Answer» B. Substitution effect |
119. |
Substitution Effect is: |
A. | Always negative |
B. | Always positive |
C. | Seldom negative |
D. | Zero |
Answer» A. Always negative |
120. |
If income effect works in the same direction to that of substitution effect, the good is a: |
A. | Normal good |
B. | Inferior good |
C. | Giffen good |
D. | Superior Good |
Answer» A. Normal good |
121. |
If income effect works in the direction opposite to that of substitution effect, the good is not: |
A. | Giffen good |
B. | Inferior good |
C. | Normal good |
D. | Superior Good |
Answer» C. Normal good |
122. |
Introspection is not the basis of : |
A. | Marshallian utility analysis |
B. | Indifference Curve Analysis |
C. | Revealed Preference Hypothesis |
D. | Demand Analysis |
Answer» C. Revealed Preference Hypothesis |
123. |
The ordering of combinations on an indifference curve is: |
A. | Weak |
B. | Strong |
C. | Average |
D. | None |
Answer» A. Weak |
124. |
Strong ordering is a distinguishing feature of the theory given by: |
A. | Marshall |
B. | Hicks |
C. | Samuelson |
D. | Adam Smith |
Answer» C. Samuelson |
125. |
Father of Economics: |
A. | Marshall |
B. | David Ricardo |
C. | Adam Smith |
D. | J.M. Keynes |
Answer» C. Adam Smith |
126. |
The Wealth of Nations is the work of: |
A. | Marshall |
B. | J.S. Mill |
C. | Adam Smith |
D. | Lionel Robins |
Answer» C. Adam Smith |
127. |
Indifference Approach is related with: |
A. | Marshall |
B. | J.R. Hicks |
C. | Samuelson |
D. | Sismondi |
Answer» B. J.R. Hicks |
128. |
Which one of the following is an example of close substitute: |
A. | Tea and Coffee |
B. | Milk and water |
C. | Bread and Butter |
D. | Pen and pencil |
Answer» A. Tea and Coffee |
129. |
The addition to the total revenue by the sale of an additional unit is: |
A. | Total revenue |
B. | Average revenue |
C. | Value added |
D. | Marginal revenue |
Answer» D. Marginal revenue |
130. |
Which cost is to be incurred by a firm even if output is zero: |
A. | Opportunity cost |
B. | Fixed cost |
C. | Variable Cost |
D. | Total cost |
Answer» B. Fixed cost |
131. |
The marginal utility theory is contributed by: |
A. | Marshall |
B. | David Ricardo |
C. | Adam Smith |
D. | Samuelson |
Answer» A. Marshall |
132. |
The factor earning of entrepreneur is: |
A. | Rent |
B. | Wage |
C. | Interest |
D. | Profit |
Answer» D. Profit |
133. |
The Scarcity definition of Economics is the contribution of: |
A. | Samuelson |
B. | Adam Smith |
C. | Lionel Robbins |
D. | Marshall |
Answer» C. Lionel Robbins |
134. |
Average Revenue is equal to: |
A. | Price |
B. | Cost |
C. | Profit |
D. | None of these |
Answer» A. Price |
135. |
Total Revenue is the maximum when Marginal Revenue is ---------- |
A. | Positive |
B. | Negative |
C. | One |
D. | Zero |
Answer» D. Zero |
136. |
Market economy is also known as: |
A. | Socialist economy |
B. | Capitalist economy |
C. | Mixed economy |
D. | Developing economy |
Answer» B. Capitalist economy |
137. |
For complementary goods, the cross elasticity of demand: |
A. | Positive |
B. | Negative |
C. | Zero |
D. | None |
Answer» B. Negative |
138. |
Relation between price of a commodity and demand for another commodity is measured by: |
A. | Price elasticity |
B. | Income elasticity |
C. | Cross elasticity |
D. | Elasticity of substitution |
Answer» C. Cross elasticity |
139. |
The demand curve for Giffen’s goods: |
A. | Vertical |
B. | Horizontal |
C. | Negative slope |
D. | Positive slope |
Answer» D. Positive slope |
140. |
When Q = f (P), the elasticity coefficient is measured by: |
A. | ΔQ/ΔP / P/Q |
B. | ΔP/ΔQ * Q/P |
C. | ΔQ/ΔP * P/Q |
D. | P/ΔQ / Q/P |
Answer» C. ΔQ/ΔP * P/Q |
141. |
Income elasticity of demand for inferior goods is: |
A. | Negative |
B. | Positive |
C. | Zero |
D. | Unity |
Answer» A. Negative |
142. |
In the case of luxury goods, the income elasticity of demand will be: |
A. | Less than unity |
B. | Unity |
C. | More than unity |
D. | All the above |
Answer» C. More than unity |
143. |
Income elasticity is positive, but less than unity in the case of: |
A. | Necessity |
B. | Luxury |
C. | Inferior |
D. | Substitutes |
Answer» A. Necessity |
144. |
The change in demand is due to the change in : |
A. | Income |
B. | Own price |
C. | Prices of related products |
D. | Expectations |
Answer» B. Own price |
145. |
Supply curve represents -------- relationship between quantity and price |
A. | Direct |
B. | Inverse |
C. | Either direct or inverse |
D. | None of the above |
Answer» A. Direct |
146. |
A market: |
A. | Necessarily refers to a meeting place between buyer and sellers |
B. | Does not necessarily refers to a meeting place between buyer and sellers |
C. | Extends over the entire country |
D. | Extends over a city |
Answer» B. Does not necessarily refers to a meeting place between buyer and sellers |
147. |
The market equilibrium for a commodity is determined by: |
A. | Market demand |
B. | Market supply |
C. | Balancing of the forces of demand and supply |
D. | Any of the above |
Answer» C. Balancing of the forces of demand and supply |
148. |
A fall in the price of the commodity holding everything else constant results in: |
A. | Increase in demand |
B. | Decrease in demand |
C. | Increase in quantity demanded |
D. | Decrease in quantity demanded |
Answer» C. Increase in quantity demanded |
149. |
When the price of the substitute commodity of X falls, the demand for X: |
A. | Rises |
B. | Falls |
C. | Remains unchanged |
D. | All of the above is possible |
Answer» B. Falls |
150. |
If the income elasticity of demand is greater than one, then the commodity is: |
A. | Necessity |
B. | Luxury |
C. | Inferior |
D. | Non-related commodity |
Answer» A. Necessity |
151. |
If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is: |
A. | Inelastic |
B. | Elastic |
C. | Unitary elastic |
D. | Perfectly elastic |
Answer» A. Inelastic |
152. |
The horizontal supply curve parallel to quantity axis represents: |
A. | Elastic supply |
B. | Inelastic supply |
C. | Perfectly elastic supply |
D. | Perfectly inelastic supply |
Answer» C. Perfectly elastic supply |
153. |
A fall in income of the consumer, other things being equal, causes: |
A. | Increase in demand |
B. | Decrease in demand |
C. | Increase in quantity demanded |
D. | Decease in quantity demanded |
Answer» A. Increase in demand |
154. |
Which of the following causes an increase in supply: |
A. | Fall in price of inputs |
B. | Increase in number of producers |
C. | Decrease in the price of production substitutes |
D. | All of the above |
Answer» D. All of the above |
155. |
Cross elasticity of demand in the case of substitutes: |
A. | Zero |
B. | Negative |
C. | Positive |
D. | Infinity |
Answer» C. Positive |
156. |
A movement down the given demand curve shows: |
A. | Increase in demand |
B. | Decrease in demand |
C. | Extension in demand |
D. | Contraction in demand |
Answer» C. Extension in demand |
157. |
Which of the following results in an increase in an increase in demand: |
A. | Fall in prices of substitutes |
B. | Increase in price of complementary goods |
C. | Fall in consumer’s income |
D. | None of the above |
Answer» D. None of the above |
158. |
Change in quantity supplied of a product can result from: |
A. | Changes in own price |
B. | Changes in cost of production |
C. | Change in technology |
D. | Change in price of related products |
Answer» A. Changes in own price |
159. |
An increase in supply means: |
A. | Movement down given supply curve |
B. | Movement upward given supply curve |
C. | Leftward shift in supply curve |
D. | Rightward shift in supply curve |
Answer» D. Rightward shift in supply curve |
160. |
At prices above the equilibrium price: |
A. | Quantity supplied exceeds quantity demanded |
B. | Quantity demanded exceeds quantity supplied |
C. | There is shortage |
D. | All of the above is possible |
Answer» A. Quantity supplied exceeds quantity demanded |
161. |
An increase in market supply, demand remaining the same causes: |
A. | Increase in equilibrium price |
B. | Decrease in equilibrium quantity |
C. | Decrease in equilibrium price and increase in equilibrium quantity |
D. | Both equilibrium price and quantity rises |
Answer» C. Decrease in equilibrium price and increase in equilibrium quantity |
162. |
An increase in market demand, supply remaining the same results in: |
A. | Decrease in equilibrium price |
B. | Decrease in equilibrium quantity |
C. | Decrease in equilibrium price and increase in equilibrium quantity |
D. | Both equilibrium price and quantity rises |
Answer» D. Both equilibrium price and quantity rises |
163. |
A fall in the market demand, supply remaining the same results in: |
A. | Increase in equilibrium price |
B. | Increase in equilibrium quantity |
C. | Increase in equilibrium price and decrease in equilibrium quantity |
D. | Both equilibrium price and quantity falls |
Answer» D. Both equilibrium price and quantity falls |
164. |
Which one of the following elasticities takes the average of prices and quantities: |
A. | Point elasticity of demand |
B. | Arc elasticity of demand |
C. | Income elasticity of demand |
D. | Cross elasticity of demand |
Answer» B. Arc elasticity of demand |
165. |
When demand curve is rectangular hyperbola, the value of price elasticity of demand will be: |
A. | Zero |
B. | One |
C. | Greater than one |
D. | Infinity |
Answer» B. One |
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