What is the name given to the graph that shows all the combinations of two commodities that a consumer can afford at the given market prices and within the particular income level in economic terms?

What is the name given to the graph that shows all the
combinations of two commodities that a consumer can afford at
the given market prices and within the particular income level in
economic terms?
by

1 Answer

Answer :

Budget line
by

Related questions

Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Last Answer : (b) price of that commodity

Cross demand expresses the functional relationship between - (1) demand and prices of related commodities (2) demand and income (3) demand and prices (4) demand and supply (4)

Description : Cross demand expresses the functional relationship between - (1) demand and prices of related commodities (2) demand and income (3) demand and prices (4) demand and supply (4)

Last Answer : (1) demand and prices of related commodities Explanation: Other things being constant, cross demand expresses the relation between demand for good A' due to change in the price of its related good 'B' ... that at different prices of good B' what different quantities of good A' will be demanded.

Cross demand expresses the functional relationship between (1) demand and prices of related commodities. (2) demand and income. (3) demand and prices. (4) demand and supply,

Description : Cross demand expresses the functional relationship between (1) demand and prices of related commodities. (2) demand and income. (3) demand and prices. (4) demand and supply,

Last Answer : demand and prices of related commodities.

X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥

Description : X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥

Last Answer : (a) 1 ;

What will be the effect on inferior commodities when income of the consumer rises? (1) Negative effect (2) Positive effect (3) No effect (4) First increase then decrease

Description : What will be the effect on inferior commodities when income of the consumer rises? (1) Negative effect (2) Positive effect (3) No effect (4) First increase then decrease

Last Answer : (1) Negative effect Explanation: In economics, an inferior good is a good that decreases in demand when consumer income rises (or rises in demand when consumer income decreases), unlike ... consumers' demand increases when their income increases. Cheaper cars are examples of the inferior goods.

What will be the effect on inferior commodities when income of the consumer rises? (1) Negative effect (2) Positive effect (3) No effect (4) First increase then decrease

Description :  What will be the effect on inferior commodities when income of the consumer rises? (1) Negative effect (2) Positive effect (3) No effect (4) First increase then decrease

Last Answer : Negative effect

Which of these statement is true about production possibility curve (PPC/PPF) (a) It shows various combinations of two goods which yield same level of satisfaction (b) It shows various combination of two goods which an economy can produce with a given amount of resources (c) It shows various combination of two goods which an economy can produce with a given budget (d) It shows various combination of two goods which an economy can produce with a given time

Description : Which of these statement is true about production possibility curve (PPC/PPF) (a) It shows various combinations of two goods which yield same level of satisfaction (b) It shows various combination of two ... (d) It shows various combination of two goods which an economy can produce with a given time

Last Answer : (b) It shows various combination of two goods which an economy can produce with a given amount of resources

If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices , then it will be equal to :

Description : If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices , then it will be equal to :

Last Answer : If economic subsidies are added to and indirect taxes are subtracted from the national income at ... prices D. Gross domestic product at factor cost

An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Description : An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Last Answer : (2) Satisfaction from two commodities Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent ... of various points showing different combinations of two goods providing equal utility to the consumer

An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Description : An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings

Last Answer : Satisfaction from two commodities

The effective rate of protection (a). distinguishes between tariffs that are effective and those that are ineffective (b). is the minimum level at which a tariff becomes effective in limiting imports (c). shows how effective a tariff is in raising revenue for the government (d). shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

Description : The effective rate of protection (a). distinguishes between tariffs that are effective and those that are ineffective (b). is the minimum level at which a tariff becomes effective in ... in value added for domestic production that a particular tariff structure makes possible, in percentage terms

Last Answer : d). shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

............... model is designed to bring prices down by increasing the number of customers who buy a particular product at once. (A) Economic Order Quantity (B) Inventory (C) Data Mining (D) Demand-Sensitive Pricing

Description : ............... model is designed to bring prices down by increasing the number of customers who buy a particular product at once. (A) Economic Order Quantity (B) Inventory (C) Data Mining (D) Demand-Sensitive Pricing

Last Answer : (D) Demand-Sensitive Pricing

If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` subsidies to get National income of the economy.

Description : If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` subsidies to get National income of the economy.

Last Answer : If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` ... Divide C. Subtract , Add D. Subtract , Divide

State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.

State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Description : State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : the extent of inflation in the prices of consumer goods

Pricing cues such as sale signs and prices that end in 9 become more influential when ________. A. Consumer price knowledge is poor B. Items are purchased frequently C. Items have been on the market a long time D. Prices are consistent year-round E. They are employed frequently

Description : Pricing cues such as sale signs and prices that end in 9 become more influential when ________. A. Consumer price knowledge is poor B. Items are purchased frequently C. Items have been on the market a long time D. Prices are consistent year-round E. They are employed frequently

Last Answer : A. Consumer price knowledge is poor

A spending pattern that indicates the annual amounts households spend for particular VU Cafeteria products within a general product class is called: A)a consumer spending pattern B)a product specific spending pattern C)a behavioural spending pattern D)a comprehensive spending pattern E)an average spending pattern

Description : A spending pattern that indicates the annual amounts households spend for particular VU Cafeteria products within a general product class is called: A)a consumer spending pattern B)a product ... C)a behavioural spending pattern D)a comprehensive spending pattern E)an average spending pattern

Last Answer : b)a product specific spending pattern

Every complaint shall be heard as expeditiously as possible and endeavour shall be made to decide the complaint within a period of ____from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within____, if it requires analysis or testing of commodities. a) 3 Months, 5 months b) 45 days, 90 days c) 30 days, 90 days d) None of these

Description : Every complaint shall be heard as expeditiously as possible and endeavour shall be  made to decide the complaint within a period of ____from the date of receipt of notice by  opposite party where the complaint does not require ... 5 months b) 45 days, 90 days c) 30 days, 90 days d) None of these

Last Answer : a) 3 Months, 5 months

Which one of the following commodities does fall within the scope of the activities of National Horticulture Mission in India ? (A) Tomato (B) Arecanut (C) Cashewnut (D) Coconut (E) All above horticultural crops

Description : Which one of the following commodities does fall within the scope of the activities of National Horticulture Mission in India ? (A) Tomato (B) Arecanut (C) Cashewnut (D) Coconut (E) All above horticultural crops

Last Answer : (E) All above horticultural crops

The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Description : The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Last Answer : (1) Growth in Percapita Real Income from year to year. Explanation: Per capita Gross National Product (GNP) is the best index of development. It can be derived by dividing the GNP of a ... its world development report 1998, classified the countries in the world on the bases of per capita GNP.

The best measure to assess a country's economic growth is - (1) per capita income at constant prices (2) per capita income at current prices , (3) gross domestic product at current prices (4) gross national product at current prices

Description : The best measure to assess a country's economic growth is - (1) per capita income at constant prices (2) per capita income at current prices , (3) gross domestic product at current prices (4) gross national product at current prices

Last Answer : (1) per capita income at constant prices Explanation: Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period ... the aggregate (such as GDP or Gross National Income) and dividing it by the total population.

Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : (3) income of an economy grows on account of an initial investment Explanation: In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in ... of the U.S. money supply, and MO as a measure of the U.S. monetary base.

The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Description : The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Last Answer : Growth in Percapita Real Income from year to year.

The best measure to assess a country’s economic growth is (1) per capita income at constant prices (2) per capita income at current prices (3) gross domestic product at current prices (4) gross national product at current prices

Description : The best measure to assess a country’s economic growth is (1) per capita income at constant prices (2) per capita income at current prices (3) gross domestic product at current prices (4) gross national product at current prices

Last Answer : per capita income at constant prices

Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : income of an economy grows on account of an initial investment 

If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Description : If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Last Answer : (3) low elasticity of demand Explanation: The Ramsey rule states that commodities with low elasticities of demand should be taxed at higher rates than commodities with high elasticities of demand. ... the Ramsey rule may result in a regressive taxation scheme society may view as inequitable.

According to Engel’s Law of consumption, the following commodities are likely to have income elasticity of less than one (a) Garments (b) Motor car (c) Cosmetics (d) Wheat and Rice

Description : According to Engel’s Law of consumption, the following commodities are likely to have income elasticity of less than one (a) Garments (b) Motor car (c) Cosmetics (d) Wheat and Rice

Last Answer : (d) Wheat and Rice

The quantity of a commodity which an individual is willing to purchase over a specific period of time is a function of (a) Price of the product ; (b) Disposal income ; (c) Taste and price of other commodities; (d) All the three

Description : The quantity of a commodity which an individual is willing to purchase over a specific period of time is a function of (a) Price of the product ; (b) Disposal income ; (c) Taste and price of other commodities; (d) All the three

Last Answer : (d) All the three

If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Description : If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Last Answer : low elasticity of demand

Which of these are outside the domain of macro economics (a) Consumer behavior ; (b) National income ; (c) Economic growth; (d) Balance of payment and trade

Description : Which of these are outside the domain of macro economics (a) Consumer behavior ; (b) National income ; (c) Economic growth; (d) Balance of payment and trade 

Last Answer : (a) Consumer behavior ;

Sellers market denotes a situation where : (1) commodities are available at competitive rates (2) demand exceeds supply (3) supply exceeds demand (4) supply and demand are evenly balanced

Description : Sellers market denotes a situation where : (1) commodities are available at competitive rates (2) demand exceeds supply (3) supply exceeds demand (4) supply and demand are evenly balanced

Last Answer : (2) demand exceeds supply Explanation: Seller's market is a market which has more buyers than sellers. High prices result from this excess of demand over supply. The opposite of the seller's market is the buyer's market, where supply greatly exceeds demand.

What is selling cost? (1) Cost incurred on transportation of commodities to market (2) Cost incurred on promoting the sale of the product (3) Cost incurred on commission and salaries personnel (4) Cost incurred on advertisement

Description : What is selling cost? (1) Cost incurred on transportation of commodities to market (2) Cost incurred on promoting the sale of the product (3) Cost incurred on commission and salaries personnel (4) Cost incurred on advertisement

Last Answer : (2) Cost incurred on promoting the sale of the product Explanation: Selling cost is total cost of marketing, advertising, and selling a product. It differs from the production cost which is incurred to produce goods.

The National Mission for Sustainable Agriculture (NMSA) aims at which of the following? a. Enhancing agricultural productivity, protection of resources such as land, water, biodiversity and genetic resources by developing strategies to make agriculture more resilient to climate change. b. Improving agricultural productivity by providing timely advisory services to farmers to adopt best practices, technology, meet with contingencies, market information, etc. c. Notifying agricultural commodities produced in the region and providing their first sale mechanism. d. Providing Irrigation benefits to the farmers to ensure early completion of projects.

Description : The National Mission for Sustainable Agriculture (NMSA) aims at which of the following? a. Enhancing agricultural productivity, protection of resources such as land, water, biodiversity and ... mechanism. d. Providing Irrigation benefits to the farmers to ensure early completion of projects.

Last Answer : a. Enhancing agricultural productivity, protection of resources such as land, water, biodiversity and genetic resources by developing strategies to make agriculture more resilient to climate change.

Sellers market denotes a situation where (1) Commodities are available at competitive rates (2) Demand exceeds supply (3) Supply exceeds demand (4) Supply and demand are equal

Description : Sellers market denotes a situation where (1) Commodities are available at competitive rates (2) Demand exceeds supply (3) Supply exceeds demand (4) Supply and demand are equal

Last Answer : (2) Demand exceeds supply

In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and supply forces in the market (3) the private-sector takes all the decisions for price-determination of various commodities produced (4) the Government controls the allocation of all the factors of production

Description : In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and ... of various commodities produced (4) the Government controls the allocation of all the factors of production

Last Answer : the Government does not interfere in the free functioning of demand and supply forces in the market

What is selling cost ? (1) Cost incurred on transportation of commodities to market (2) Cost incurred on promoting the sale of the product (3) Cost incurred on commission and salaries personnel (4) Cost incurred on advertisement

Description : What is selling cost ? (1) Cost incurred on transportation of commodities to market (2) Cost incurred on promoting the sale of the product (3) Cost incurred on commission and salaries personnel (4) Cost incurred on advertisement

Last Answer : Cost incurred on promoting the sale of the product

Sellers market denotes a situation where : (1) commodities are available at competitive rates (2) demand exceeds supply (3) supply exceeds demand (4) supply and demand are evenly balanced

Description : Sellers market denotes a situation where : (1) commodities are available at competitive rates (2) demand exceeds supply (3) supply exceeds demand (4) supply and demand are evenly balanced

Last Answer :  demand exceeds supply

Production possibility curves shows maximum combinations of -----products (a) 1 ; (b) 2 ; (c) 3 ; (d) 4

Description : Production possibility curves shows maximum combinations of -----products (a) 1 ; (b) 2 ; (c) 3 ; (d) 4 

Last Answer : (b) 2

An Increase in national income because of an increase in price is called- (1) an increase in national income in real terms (2) an increase in national income at constant prices (3) an increase in money national income (4) an increase in national income at base year prices

Description : An Increase in national income because of an increase in price is called- (1) an increase in national income in real terms (2) an increase in national income at constant prices (3) an increase in money national income (4) an increase in national income at base year prices

Last Answer : (4) an increase in national income at base year prices Explanation: To find the real value of changes in output under inflationary conditions, the effects of any general price increase (price inflation) ... the base year. It holds prices constant in terms of the prices existing in the base year.

The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.

Description : The terms of trade measures (a) the income of a country compared to another (b) The GDP of a country compared to another © The quantity of exports of a country compared to another (d) Export prices compared to import prices.

Last Answer : (d) Export prices compared to import prices.

An increase in national income because of an increase in price is called (1) an increase in national income in real terms (2) an increase in national income at constant prices (3) an increase in money national income (4) an increase in national income at base year prices

Description : An increase in national income because of an increase in price is called (1) an increase in national income in real terms (2) an increase in national income at constant prices (3) an increase in money national income (4) an increase in national income at base year prices

Last Answer : an increase in national income at base year prices 

Robert is a marketer for a global consumer products company. He is working on the promotional campaign designed to reach a target audience in a new international market. Robert is working hard to make sure that the promotional campaign is clearly understood by the nation's consumers and doesn't offend anyone. Which of the factors in the external environment is he being influenced by? A. Socio-cultural environment B. Competitive environment C. Economic environment D. Legal environment

Description : Robert is a marketer for a global consumer products company. He is working on the promotional campaign designed to reach a target audience in a new international market. Robert is working ... A. Socio-cultural environment B. Competitive environment C. Economic environment D. Legal environment

Last Answer : A. Socio-cultural environment

If marketing research shows that an aggregate of people do not desire a particular product, the people in the aggregate : 1. are a market for the product 2. do not have the ability to purchase the product 3. do not have the authority to purchase the product 4. are not market for the product 5. are a market but will not purchase the product

Description : If marketing research shows that an aggregate of people do not desire a particular product, the people in the aggregate : 1. are a market for the product 2. do not have the ability to purchase the ... product 4. are not market for the product 5. are a market but will not purchase the product

Last Answer : are not market for the product

If marketing research shows that an aggregate of people do not desire a particular product, the people in that aggregate: A) are a market for the product B) do not have the ability to purchase the product C) do not have the authority to purchase the product D) are not a market for the product E) are a market but will not purchase the product

Description : If marketing research shows that an aggregate of people do not desire a particular product, the people in that aggregate: A) are a market for the product B) do not have the ability to purchase the product ... D) are not a market for the product E) are a market but will not purchase the product

Last Answer : D) are not a market for the product

)A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.

Aggregate net value of the output in one year is the - (1) National income at factor cost (2) Gross Domestic Product at market prices (3) Net. National Product at market prices (4) Gross National Product at market prices

Description : Aggregate net value of the output in one year is the - (1) National income at factor cost (2) Gross Domestic Product at market prices (3) Net. National Product at market prices (4) Gross National Product at market prices

Last Answer : (3) Net. National Product at market prices Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in ... at market price, Net national product at market price=Gross national product at market priceDepreciation.

National income is A. NDP at market prices B. NDP at factor cost C. GNP at market prices.

Description : National income is A. NDP at market prices B. NDP at factor cost C. GNP at market prices.

Last Answer : C. GNP at market prices.

National income is (a) NDP at market prices ; (b) NDP at factor cost ;(c) NNP at factor cost ; (d) GNP at market prices.

Description : National income is (a) NDP at market prices ; (b) NDP at factor cost ;(c) NNP at factor cost ; (d) GNP at market prices.

Last Answer : ;(c) NNP at factor cost ;

Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation

Description : Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation

Last Answer : (a) NNP at market price – NDP at market price ;

A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy 

Last Answer :  the high rate of inflation prevailing in the economy