Question # 1

If A, B, C and D are any four market baskets, and if the consumer has ranked them so that D is preferred to C, A is hot preferred to B, and B is not preferred to c then.

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A is preferred to C

A is preferred to D

B is preferred to D

D is preferred to A

Which of the following does not characterize monopolistic competition.

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Product differentiation

Many producers

Absence of advertising

Some control over price

One of the following has more elastic demand.

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A commodity with substitutes

A commodity having more than one use

A commodity commonly use

None of these

An increase in price causes an increase in total revenue when.

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Demand is elastic

Demand is inelastic

Demand is unit elastic

All of the above are possible

In substitution effect a consumer

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Shifts away from the commodity which price has risen

shifts in favor of commodity which price has risen

shifts away from the commodity which price has fallen

None of these

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

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Lowers total utility

Produces negative total utility

Lowers marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

Economic growth is shown on the production possibility frontier as.

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The curvature of the PPF

An inward shift in the PPF

An outward shifts in the PPF

A movement from one point on the PPF to another

Which of the following explains why demand curves slope downward.

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Prices and income

substitutes and complements

Resources and technology

Substitution effect and income effect

change in quantity demanded

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Downward shift of demand curve

Movement on the same demand curve

Downward shift

None of these

The Lorenz curve shows that

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unemployment does not affect social group

People with low income spend more

People with low income spend less

the degree of income equality in the economy

The demand for labor is the same as the

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Marginal revenue product

Marginal physical product

Marginal cost

Wage

The short run supply curve for a competitive industry is derived by.

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Horizontally summing the marginal cost curves for each firm in the industry

Horizontally summing the average variable cost curves for each firming the industry

Vertically summing the marginal cost curves for each firm in the industry

None of the above

Marginal cost is the change is cost the result from a one unit increase in.

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Price

Cost

Output

Revenue

At level of income and output of 100 in the diagram above

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APC < 1

Equilibrium occurs

Consumption expenditures are equal to 100

MPC > APC

Which skills are most likely to be paid for by the employer.

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General skills

Specific skills

Educational skills

None of these

Indifference curve approach is also called.

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Law of diminishing marginal utility

Law of substitution

Ordinal measure approach

None of these

An oligopolistic industry can be characterized by all of the following except

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May sellers

mutual interdependence

Economies of scale

A homogenous product

Cardinal approach theory was presented by

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Marshall

Adam smith

Robbins

Hicks

An income demanded curve of an inferior good is.

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Same in slope

Upward is slope

Downward in slope

None of these

How much will a speculator invest now if he expects to earn Rs. 144 two years from now assuming the nominal rate of interest is 20%

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Rs.1654.29

Rs.100.00

Rs.94.00

Rs.68.00

Skills that can be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

A production possibilities curve indicates that when resources are being used efficiently

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More of one good cna be produced only if less of another good is produced

More of one good can be produced only if its price is lowered

Producing more of one good result in greater production of other goods

More of one good can be product without producing less of other goods

Which of the following is a characteristic of monopolistic competition.

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One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product quality price and marketing

When firms are free is enter and exit the market

A firm A's break even quantity is.

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10 units

40 units

50 units

30 units

What is the production level for public good W, if the government uses full cost pricing.

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Q = 2

Q = 5

Q= 4

Q = 6

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