Description : The demand curve for a Giffen good is (1) upward rising (2) downward falling (3) parallel to the quantity axis (4) parallel to the price axis
Last Answer : (1) upward rising Explanation: A Giffen good is a good whose consumption in-creases as its price increases. (For a normal good, as the price increases, consumption decreases.) Thus, the ... a price changes the income effect outweighs the substitution effect and this leads to perverse demand curve.
Description : Long run supply curve of a decreasing cost industry is (a) Downward sloping curve ; (b) Upward sloping curve; (c) Straight line parallel to X axis ; (d) Straight line parallel to y axis
Last Answer : (a) Downward sloping curve ;
Description : An exceptional demand curve is one that moves - (1) upward to the right (2) downward to the right (3) horizontally (4) vertically
Last Answer : (2) downward to the right Explanation: A demand curve that violates the law of demand is termed an exceptional demand curve. If a household expects the price of a commodity to increase, it may ... backward slope from the top right to down left. This curve is known as an exceptional demand curve.
Description : An exceptional demand curve is one that moves (1) upward to the right (2) downward to the right (3) horizontally (4) vertically
Last Answer : downward to the right
Description : A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to - (1) Zero (2) One (3) Less than one (4) Infinity
Last Answer : (4) Infinity Explanation: Price elasticity of demand measures consumer response to price changes. If consumers are relatively sensitive to price changes, demand is elastic: if they are relatively ... keeps changing with the price. So the coefficient of price elasticity of demand is infinity.
Description : A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to (1) Zero (2) One (3) Less than one (4) Infinity
Last Answer : Infinity
Description : If a firms cost of raw material increases then (a) Market price of the final product will also increase (b) Equilibrium level of quantity also increases ; (c) Marginal cost curve will shift upward (d) Marginal cost curve will shift downward
Last Answer : ; (c) Marginal cost curve will shift upward
Description : Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line
Last Answer : (b) Upward sloping line;
Description : A unit price elastic demand curve will touch - (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis
Last Answer : (2) neither price axis, nor quantity axis Explanation: Unit elastic refers to an elasticity alternative in which any percentage change in price cause an equal percentage change in quantity. In other ... However, the unit price elastic demand curve does not touch either price axis or quantity axis.
Description : A unit price elastic demand curve will touch (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis
Last Answer : neither price axis, nor quantity axis
Description : Average Fixed Cost Curve is - (1) Upward sloping (2) `U' shaped (3) 'V' shaped (4) Downward sloping
Last Answer : (4) Downward sloping Explanation: The Average Fixed Cost Curve graphically represents the relation between average fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced. It is relatively high at small quantities of output.
Description : Average Fixed Cost Curve is (1) Upward sloping (2) ‘U’ shaped (3) ‘V’ shaped (4) Downward sloping
Last Answer : Downward sloping
Description : Under increasing returns the supply curve is - (1) positively sloped from is to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis
Last Answer : (1) positively sloped from is to right Explanation: Supply curve, in economics, is a graphic representation of the relationship between product price and quantity of product that a seller is willing and ... i.e as the price of a commodity increases in the market, the amount supplied increases).
Description : Under increasing returns the supply curve is (1) positively sloped from left to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis
Last Answer : positively sloped from left to right
Description : If a firms cost of raw material decreases then (a) Marginal cost curve will shift downward ; (b) Marginal cost curve will shift upward (c) Market price will go down ; (d) Market price will go up
Last Answer : (a) Marginal cost curve will shift downward ;
Description : In a monopoly market, an upward shift in the market demand results in a new equilibrium with A.A higher quantity and a lower price B.A higher quantity and the same price C.A higher quantity and higher price D.All of the above
Last Answer : C.A higher quantity and higher price
Description : If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good
Last Answer : (1) giffen good Explanation: A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It ... rises, violating the law of demand. When price goes up, the quantity demanded also goes up.
Last Answer : giffen good
Description : A perfectly elastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis; (c) U shaped ; (d) Downward sloping
Last Answer : the aggregate demand curve
Description : A perfect inelastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis ; (c) U shaped; (d) Downward sloping
Last Answer : (a) Parallel to Y axis or a vertical line ;
Description : The demand curve facing a perfectly competitive firm is - (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic
Last Answer : (4) perfectly elastic Explanation: A perfectly competitive industry is comprised of a. large number of relatively small firms that sell identical products. Each perfectly competitive firm is so small ... at the going market price. This translates into a horizontal or perfectly elastic demand curve.
Description : The demand curve facing a perfectly competitive firm is (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic
Last Answer : perfectly elastic
Description : If the loading on a pre-stressed rectangular beam, is uniformly distributed, the tendon to be provided should be. (A) Straight below centroidal axis (B) Parabolic with convexity downward (C) Parabolic with convexity upward (D) Straight above centroidal axis
Last Answer : Answer: Option B
Description : A simply supported rectangular beam is uniformly loaded and is prestressed. The tendon provided for prestressing should be (a) Straight, above centroidal axis (b) Straight, below centroidal axis (c) parabolic, with convexity upward (d) Parabolic, with convexity downward
Last Answer : (d) Parabolic, with convexity downward
Description : An increase in temperature on the top fibre of a simply supported beam will cause (a) Downward deflection (b) Upward deflection (c) No deflection (d) Angular rotation about neutral axis
Last Answer : Upward deflection
Description : The adiabatic saturation curve for a vapour-gas mixture is (A) Straight line (B) Slightly concave upward (C) Slightly concave downward (D) None of these
Last Answer : (B) Slightly concave upward
Description : Shifts in demand curve include A.Increase in Demand (Upward shift) B.Extention in demand C.Contraction in demand D.None of the above
Last Answer : A.Increase in Demand (Upward shift)
Description : Name the curve which shows the quantity of products a seller wishes to sell at a given price level. (1) Demand curve (2) Cost curve (3) Supply curve (4) None of these
Last Answer : (3) Supply curve Explanation: The supply curve shows the relationship between the price of a good and the quantity supplied, holding constant the values of all other variables that affect supply. Each point on the curve shows the quantity that sellers would choose to sell at a specific price.
Description : When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will - (1) decrease (2) increase (3) remain the same (4) contract
Last Answer : (2) increase Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to ... is movement along a demand curve when a change in price causes the quantity demanded to change.
Description : The demand curve shows that price and quantity demanded are - (1) directly related only (2) directly proportional and also directly related (3) inversely proportional and aslo inversely related (4) inversely related only
Last Answer : (3) inversely proportional and aslo inversely related Explanation: Law of demand states that consumers buy more of a good when its price is lower and less when its price is higher. It states that ... good demanded by the consumer will be negatively correlated to the change in the price of the good.
Description : An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left
Last Answer : (a) quantity demanded to decrease
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Last Answer : Supply curve
Description : The demand curve shows that price and quantity demanded are (1) directly related only (2) directly proportional and also directly related (3) inversely proportional and aslo inversely related (4) inversely related only
Last Answer : inversely proportional and aslo inversely related
Description : When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will (1) decrease (2) increase (3) remain the same (4) contract
Last Answer : increase
Description : If the plane table is not horizontal in a direction at right angles to the alidade, the line of sight is parallel to the fiducial edge only for (A) Horizontal sights (B) Inclined sights upward (C) Inclined sight downward (D) None of these
Last Answer : (A) Horizontal sights
Description : Which of the following occurs when labour productivity rises? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right
Last Answer : (4) The labour demand curve shifts to the right Explanation: As labour productivity increases, the production function shifts up and simultaneously the labor demand curve shifts out and right. At ... , the production function shifts up and simultaneously the labor demand curve shifts out and right.
Description : Which of the following occurs when labour productivity rises ? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right
Last Answer : The labour demand curve shifts to the right
Description : Demand curve of a firm under perfect competition is : (1) horizontal to ox-axis (2) negatively sloped (3) positively sloped (4) U - shaped
Last Answer : (1) horizontal to ox-axis Explanation: Under Perfect Competition, the firm faces a horizontal demand curve. It can sell any quantity desired at the market price, but cannot sell anything above the market price.
Description : Demand curve of a firm under perfect competition is : (1) horizontal to ox-axis (2) negatively sloped (3) positively sloped (4) U – shaped
Last Answer : horizontal to ox-axis
Description : Which of the following faces a downward sloping demand curve (a) Firm in a competitive market ; (b) Firm in a monopoly market ; (c) Both ; (d) None
Last Answer : (b) Firm in a monopoly market ;
Description : According to traditional approach the factor responsible for operation of downward slope of demand curve are (a) Change in number of consumers ; (b) Law of decreasing marginal utility (c) Alternative uses of goods ; (d) All the three
Last Answer : (d) All the three
Description : The Marginal Utility Curve slopes downward from left to right indicating - (1) A direct relationship between marginal utility and the stock of commodity (2) A constant relationship between marginal ... stock of commodity (4) An inverse relationship between marginal utility and the stock of commodity
Last Answer : (4) An inverse relationship between marginal utility and the stock of commodity Explanation: The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from ... marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less.
Description : The Marginal Utility Curve slopes downward from left to right indicating (1) A direct relationship between marginal utility and the stock of commodity (2) A constant relationship between marginal ... stock of commodity (4) An inverse relationship between marginal utility and the stock of commodity
Last Answer : An inverse relationship between marginal utility and the stock of commodity
Description : If Roberts PLC finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both £85, then: A)its marginal costs are falling. B)average total cost is at ... average total costs are rising. D)demand is elastic. E)average total cost is at its lowest level.
Last Answer : E)average total cost is at its lowest level.
Description : When the total product rises at an increasing rate, the - (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant
Last Answer : (2) marginal product is rising Explanation: Marginal product of an input (factor of production) is the extra output that can be produced by using one more unit of the input (for instance ... from total product. The other is average product. Marginal product is directly proportional to total product.
Description : A favorable Balance of Trade of a country implies that - (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports
Last Answer : (2) Exports are greater than Imports Explanation: Favorable balance of trade is an imbalance in a nation's balance of trade in which the payments for merchandise exports received by the country exceed ... and income. A balance of trade surplus is often the source of a balance of payments surplus.
Description : When average cost production (AC) falls, marginal cost of production must be - (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost
Last Answer : (4) Less than the average cost Explanation: Average cost is the total cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing one more ... where marginal cost is higher than average cost, and average cost is an increasing function of output.
Description : A favourable Balance of Trade of a country implies that (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports
Last Answer : Exports are greater than Imports
Description : When average cost production (AC) falls, marginal cost of production must be. (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost
Last Answer : Less than the average cost