Description : Economic rent does not arise when the supply of a factor unit is - (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic
Last Answer : (2) Perfectly elastic Explanation: Economic rent in the sense of surplus over transfer earnings arise when the supply of the factor units is less than perfectly elastic or not perfectly elastic. When ... , at a given price or remuneration, the entrepreneur can engage any number of factor units.
Description : Any factor of production can earn economic-rent, when its supply will be - (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above
Last Answer : (2) Perfectly inelastic Explanation: Economic rent is the revenue that can be earned from the land or other natural resource for which there is a fixed supply - as economists like to say, the supply ... inelastic, the amount of its supply does not depend on any income that the resource can produce.
Description : Any factor of production can earn economic-rent, when its supply will be (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above
Last Answer : Perfectly inelastic
Description : Elasticity (e) expressed by the formula 1 > e > 0 is - (1) Perfectly elastic (2) Relatively elastic (3) Perfectly inelastic (4) Relatively inelastic
Last Answer : (4) Relatively inelastic Explanation: Elasticity (e) expressed by the formula 1 > e > 0 is relatively inelastic. Elasticity is responsiveness of one variable to a change in another, when other conditions are held constant.
Description : A horizontal demand curve is - (1) relatively elastic (2) perfectly inelastic (3) perfectly elastic (4) of unitary elasticity
Last Answer : (3) perfectly elastic Explanation: The demand curve facing a perfectly competitive firm is flat or horizontal. This is because all firms in perfect competition are by definition selling an identical (homogeneous) ... of the curve is zero, it is impossible for the price to change in the market.
Description : )When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic
Last Answer : (2) Inelastic Explanation: When the percentage change in quantity demanded is less than the percentage change in price, then the demand for the commodity is said to be inelastic. Price elasticity of demand refers to the degree of responsiveness of quantity demanded to change in price.
Description : Elasticity (e) expressed by the formula l > e > 0 is (1) Perfectly elastic (2) Relatively elastic (3) Perfectly inelastic (4) Relatively inelastic
Last Answer : Relatively inelastic
Description : When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic
Last Answer : Inelastic
Description : If the consumption of a product can be postponed for the time being (a) The demand for the product will be inelastic (b) The demand for the product will be relatively elastic (c) The demand for the product will be perfectly elastic (d) The demand for the product will be perfectly inelastic
Last Answer : (b) The demand for the product will be relatively elastic
Description : Very short period is the market condition where the supply remain perfectly (a) Elastic ; (b) Inelastic ; (c) Unity elastic ; (d) Elasticity less than 1
Last Answer : (b) Inelastic ;
Description : The demand for necessities is - (1) elastic (2) perfectly inelastic (3) inelastic (4) perfectly elastic
Last Answer : (2) perfectly inelastic Explanation: Inelastic demand means that if the price changes, the quantity demanded will not change much. The more necessary a good is, the lower the elasticity, as people ... it no matter the price. Necessities such as water are likely to have perfectly inelastic demand.
Description : If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is - (1) perfectly inelastic (2) elastic (3) perfectly elastic (4) inelastic
Last Answer : (3) perfectly elastic Explanation: If quantity demanded changes by a very large percentage as a result of a tiny percentage change in price, then the demand is said to be perfectly elastic ... in this extreme case would be undefined but it approaches negative infinity as demand becomes more elastic.
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 : The demand for necessities is (1) elastic (2) perfectly inelastic (3) inelastic (4) perfectly elastic
Last Answer : perfectly inelastic
Description : A horizontal demand curve is (1) ralatively elastic (2) perfectly inelastic (3) perfectly elastic (4) of unitary elasticity
Description : If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is (1) perfectly inelastic (2) elastic (3) perlectly elastic (4) inelastic
Last Answer : perlectly elastic
Description : The upper portion of the kinked demand curve is relatively A.More inelastic B.More elastic C.Less elastic D.Inelastic
Last Answer : B.More elastic
Description : Why is rent earned by land even in the long run? (1) Land has original and indestructible power (2) Land is a man made factor (3) Its supply is inelastic in the short run (4) Its supply is inelastic in the long run
Last Answer : (4) Its supply is inelastic in the long run Explanation: Rent accrues to land which is fixed in supply even in the longer run. It is permanent. In contrast to it is a quasi rent, introduced by Marshall, which is inelastic in the short run, but elastic in the longer run.
Description : Why is rent earned by land even in the long run ? (1) Land has original and indestructible power (2) Land is a man made factor (3) Its supply is inelastic in the short run (4) Its supply is inelastic in the long run
Last Answer : Its supply is inelastic in the long run
Description : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic
Last Answer : (b) If aggregate supply is completely inelastic
Description : Define coefficient of restitution and obtain its value for an elastic collision and a perfectly inelastic collision.
Last Answer : Define coefficient of restitution and obtain its value for an elastic collision and a perfectly inelastic collision.
Description : The tendency of a deformed solid to regain its actual proportions instantly upon unloading known as ______________ a) Perfectly elastic b) Delayed elasticity c) Inelastic effect d) Plasticity
Last Answer : a) Perfectly elastic
Description : Kinetic theory of gases assumes that the collisions between the molecules are (a) perfectly elastic (b) perfectly inelastic (c) partly elastic (d) partly inelastic (e) partly elastic and partly inelastic.
Last Answer : Answer : a
Description : Quasi-Rent arises from (a) Land (b) Labour (c) Capital (d) Factors whose supply in the short run is inelastic.
Last Answer : (c) Capital
Description : Perfectly inelastic demand is equal to : (1) One (2) Infinite (3) Zero (4) Greater than one
Last Answer : (3) Zero Explanation: Price Elasticity of Demand is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. It measures the responsiveness of ... to 0, demand is perfectly inelastic (i.e., demand does not change when price changes).
Description : If elasticity of demand is perfectly inelastic, then burden of tax will be on (a) Buyer (b) Seller (c) on both (a) and (b) (d) More on seller
Last Answer : (a) Buyer
Description : Perfectly inelastic demand is equal to : (1) One (2)Infinite (3) Zero (4)Greater than one
Last Answer : Zero
Description : The bowed shape of the production possibilities curve illustrates: a. the law of increasing marginal cost b. that production is inefficient c. that production is unattainable d. the demand is relatively inelastic
Last Answer : a. the law of increasing marginal cost
Description : In price discrimination, which section of the market is charged the higherprice? a. the section with the richest people b. the section with the oldest people c. the section with the most inelastic demand d. the section with the most elastic demand
Last Answer : c. the section with the most inelastic demand
Description : If total revenue rises when price falls, the demand curve is (a) Elastic (b) Unitary elastic (c) Inelastic (d) None of the above
Last Answer : (a) Elastic
Description : The demand for cable television is relatively elastic, because if the price gets too high, people will rent DVDs or videos instead of watching cable. Who is likely to bear the incidence of a 10 percent tax on cable television?
Last Answer : the producer
Description : If price of coffee falls leading to increase in total outlay on coffee, the demand of coffee is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic
Last Answer : (a) Elastic ;
Description : If price of X falls leading to fall in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic
Description : If price of X falls leading to increase in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic
Description : If price of sugar fills leading to fall in total outlay on sugar, the demand of sugar is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic
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 : If the demand curve confronting an individual firm is perfectly elastic, then firm is A.Price taker B.Adjust output C.Adjust price D.All of these Answer Repor
Last Answer : A.Price taker
Description : In a perfectly inelastic collision, kinetic energy A. totally disappears B. is increased C. is decreased D. is unchanged
Last Answer : totally disappears
Description : Surplus earned by a factor other than land in the short period of referred to as- (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent
Last Answer : (3) quasi-rent Explanation: Quasi-rent is the surplus which is received in the short period because of demand exceeding the supply by the man made factors besides land. It is an analytical term ... opportunity cost is defined as the current income minus the income available in the next best use.
Description : Surplus earned by a factor other than land in the short period of referred to as (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent
Last Answer : quasi-rent
Description : In equilibrium, a perfectly competitive firm will equate - (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost
Last Answer : (4) marginal revenue with marginal cost Explanation: A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost ... marginal cost curve. The marginal cost curve is thus the perfectly competitive firm's supply curve.
Description : In equilibrium, a perfectly competitive firm will equate (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost
Last Answer : marginal revenue with marginal cost
Description : The policy that assumes that demand is relatively inelastic over certain price ranges is called A)price lining. B)odd-even pricing. C)price skimming. D)prestige pricing. E)customary pricing.
Last Answer : A)price lining.
Description : Is the demand for higher education income elastic income inelastic or neither?
Last Answer : It is likely "income elastic" because the reverse is true: thenumber of people seeking higher education can decrease when thecost of that education goes up (unaffordable). So with ... applicants. This has definitely occurred duringperiods when government grants covered all or part of theexpense.
Description : If the total kinetic energy and momentum of a system becomes zero after collision, then the collision is A. elastic B. inelastic C. conserved D. not conserved
Last Answer : inelastic
Description : Ligament is a/an (a) inelastic white fibrous tissue (b) modified white fibrous tissue (c) modified yellow elastic fibrous tissue (d) none of the above.
Last Answer : (c) modified yellow elastic fibrous tissue
Description : The demand for many industrial products for which a price increase or decrease will not significantly affect the demand is 1. elastic 2. inelastic 3. derived 4. joint 5. none of these
Description : With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted shaped demand curve
Last Answer : D)Products with elastic demand
Description : A penetration-pricing policy is particularly appropriate when demand is: A)increasing. B)highly elastic. C)highly inelastic. D)decreasing.
Last Answer : B)highly elastic.