Description : An indiference curve measures ______ level of satisfaction derived from different combinations of commodity X and Y. (1) same (2) higher (3) lower (4) minimum
Last Answer : (1) same Explanation: An indifference curve may be defined as the locus of points, each representing a different combination of two substitute goods, which yield the same utility or level of ... is indifferent between any two combinations of goods when it comes to making a choice between them.
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
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
Description : “Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.
Last Answer : (b) always false
Description : Other things remaining the same, when a consumer's income increases, his equilibrium point moves to A.A higher indifference curve B.To the left-hand side on the same indifference curve C.Remains unchanged on the same indifference curve D.A lower indifference curve
Last Answer : A.A higher indifference curve
Description : A levy of excise duty on consumption of an item consumed will .. (a) Induce suppliers to pump in more quantity in the market; (b) Result in fall in the consumption of the commodity ... by the consumer ; (c) Lead to inflationary conditions ; (d) Place the consumer on lower indifference curve
Last Answer : (d) Place the consumer on lower indifference curve
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
Description : On an indifference map, if the income consumption curve slopes downwards to the right it shows that A.Both X and Y are superior goods B.Y is an inferior good C.X is an inferior good D.Both X and Y are inferior goods
Last Answer : B.Y is an inferior good
Description : A curve that goes through all the tangency points of an x and y isoquants in a Edgeworth Box is called (a) Indifference curve (b) Trade indifference curve (c) Offer curve (d) Contract curve
Last Answer : Offer curve
Description : At the point of equilibrium, the slopes of indifference curve and budget line are (a) different (b) equal (c) not measurable (d) increasing
Last Answer : (b) equal
Description : The term utility means - (1) usefulness of a commodity (2) the satisfaction which a commodity yields (3) the service which a commodity is capable of rendering (4) None of these
Last Answer : (2) the satisfaction which a commodity yields Explanation: In economics, 'Utility,' refers to the total satisfaction received from consuming a good or service. It is usually applied by economists ... commodities that an individual or a society would accept to maintain a given level of satisfaction.
Description : The term utility means (1) usefulness of a commodity (2) the satisfaction which a commodity yields (3) the service which a commodity is capable of rendering (4) None of these
Last Answer : the satisfaction which a commodity yields
Description : Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve
Last Answer : (4) Phillips curve Explanation: The Phillips curve shows the inverse relationship between inflation and unemployment: as unemployment decreases, inflation increases. The relationship, however, is not linear. Graphically, ... unemployment rate is on the x-axis and the inflation rate is on the y-axis.
Description : Which of the following concepts are most closely associated with J.M. Keynes? (1) Control of money supply (2) Marginal utility theory (3) Indifference curve analysis (4) Marginal efficiency of captial
Last Answer : (4) Marginal efficiency of captial Explanation: The marginal efficiency of capital (MEC) is that rate of discount which would equate the price of a fixed capital asset with its present discounted ... given by the returns expected from the capital asset during its life Just equal its supply price
Description : Price effect in indifference curve analysis arises A.When the consumer becomes either better off or worse off because price change is not compensated by income change. B.When the consumer is betler off due to a change in income and price C.When income and price change D.None of the above
Last Answer : A.When the consumer becomes either better off or worse off because price change is not compensated by income change.
Description : An indifference curve is always A.A vertical straight line B.Convex to the origin C.Concave to the origin D.A horizontal straight line
Last Answer : B.Convex to the origin
Description : Put into chronological order on the basis of development: l. Law of demand 2. Law of indifference 3. Law of diminishing marginal utility 4. Revealed preference curve 5. Indifference curve A.1 3 4 2 5 B.1 5 3 4 2 C.1 3 2 5 4 D.1 2 3 4 5
Last Answer : C.1 3 2 5 4
Description : An indifference curve indicates (a) No choice among goods (b) No need of any good (c) Disinterested in acceptance of goods
Last Answer : (d) One combination is preferred to another
Description : Marginal rate of substitution is the ___of the indifference curve (a) mean (b) slope © peak (d) inverse
Last Answer : (b) slope
Description : Which curve shows the inverse relationship between unemployment and inflation rates ? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve
Last Answer : Phillips curve
Description : Which of the following concepts are most closely associated with J.M. Keynes ? (1) Control of money supply (2) Marginal utility theory (3) Indifference curve analysis (4) Marginal efficiency of captial
Last Answer : Marginal efficiency of captial
Description : )The demand of a commodity is a direct demand but the demand of a factor of production is called a - (1) Crossed demand (2) Joint demand (3) Derived demand (4) Independent demand
Last Answer : (3) Derived demand Explanation: In the words of McConnell, the demand for factors of production is a derived demand that is derived from the finished goods and services which resources help to produce. ... demand, demand for factors is derived demand. It is based on the productivity of the factors.
Description : The demand of a commodity is a direct demand but the demand of a factor of production is called a (1) Crossed demand (2) Joint demand (3) Derived demand (4) Independent demand
Last Answer : Derived demand
Description : Capital output ratio of a commodity measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output
Last Answer : (2) the amount of capital invested per unit of output Explanation: Capital Output Ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency ... order to increase the output. When countries use their natural resources instead of capital then COR reduces.
Description : Capital output ratio of a commodity measures (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output
Last Answer : the amount of capital invested per unit of output
Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes
Last Answer : (4) When only price of the commodity changes 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 ... only when there is a change in other determinants of demand, other than price of the commodity.
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.
Last Answer : When only price of the commodity changes
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 : Objective of marketing is ______________ 1. Target market 2. Fulfil needs 3. Integrated Marketing 4. Profit by customer satisfaction 5. All of the above
Last Answer : All of the above
Description : In a selling process in today's world ______________ 1. only standard products are sold 2. no customization required 3. the seller need not have product knowledge 4. the seller should aim at customer satisfaction 5. only quantum of sales matters
Last Answer : the seller should aim at customer satisfaction
Description : According to principle of diminishing marginal rate of substitution a. One commodity must be decreased while other is increased b. Commodity which is increased has higher marginal significance c. Commodity which is decreased ... .Both a and b are correct C.Both a and c are correct D.All are correct
Last Answer : C.Both a and c are correct
Description : Demand curve can be derived from the law of diminishlng marginal utility on which of the following assumptions? (i) Utility can be measured in quantitative terms (ii) Utility of money is constant Of these statements: A.Only ... ) and (ii) are true C.Only (ii) is true D.Neither (i) nor (ii) is true
Last Answer : B.Both (i) and (ii) are true
Description : Which one of the following not a feature of Indifference Curve? (1) They do not intersect each other (2) They slope downwards to the right (3) They are parallel to each other (4) They are concave to each other
Last Answer : (4) They are concave to each other Explanation: Indifference curves are usually convex to the on-gin. In In other words, the indifference curve is relatively flatter in its righthand portion and ... convexity of an indifference curve depends on the rate of fall in the marginal rate of substitution.
Description : Which one of the following is not a feature of Indifference Curve? (1) They do not intersect each other (2) They slope downwards to the right (3) They are parallel to each other (4) They are concave to each other
Last Answer : They are concave to each other
Description : Combinations of base units are A. simple units B. derived units C. scalars D. vectors
Last Answer : derived units
Description : The density of seawater is greater than that of fresh water. A boat will float: w) Higher in fresh water than in seawater x) Lower in fresh water than in seawater y) At the same level in both z) Any of the above, depending upon its shape
Last Answer : ANSWER: X -- LOWER IN FRESH WATER THAN IN SEAWATER
Description : Safety aside, for which of the following reasons is alcohol used in preference to mercury in a minimum thermometer? w) Alcohol has a higher boiling point x) Alcohol has a lower freezing point y) Alcohol contracts more uniformly z) Alcohol can be dyed for visibility
Last Answer : ANSWER: X -- ALCOHOL HAS A LOWER FREEZING POINT
Description : Pegging up of a currency means, fixing the value of a currency - (1) at a constant level (2) at a lower level (3) at a higher level (4) leaving it to market forces
Last Answer : (1) at a constant level Explanation: Currency pegging is the idea of fixing the exchange rate of a currency by matching its value to the value of another single currency or to a basket of other ... the value of a currency, with respect to the .currency or the other valuable it is pegged to.
Description : Pegging up of a currency means, fixing the value of a currency (1) at a constant level (2) at a lower level (3) at a higher level (4) leaving it to market forces
Last Answer : at a constant level
Description : The word Computer is derived from a Latin word ______________
Last Answer : Fill in the Blank: The word Computer is derived from a Latin word ______________
Description : Select the correct statement. (A) A contour is not necessarily a closed curve. B) A contour represents a ridge line if the concave side of lower value contour lies towards the higher value contour ... each other except in case of an overhanging cliff (D) All of the above statements are correct
Last Answer : (C) Two contours of different elevations do not cross each other except in case of an overhanging clif
Description : Opportunity cost of production of a commodity is - (1) the cost that the firm could have Incurred when a different technique was adopted (2) the cost that the firm could have incurred under a different method of production (3) the actual cost incurred (4) the next best alternative output
Last Answer : (4) the next best alternative output Explanation: The concept of opportunity cost is based on scar-city and choice. The opportunity cost of a commodity is the next best alternative commodity ... to produce alternative goods and services. If one commodity is produced another commodity is sacrificed.
Description : Opportunity cost of production of a commodity is (1) the cost that the firm could have incurred when a different technique was adopted (2) the cost that the firm could have incurred under a different method of production (3) the actual cost incurred (4) the next best alternative output
Last Answer : the next best alternative output
Description : The price of a commodity is the same as (1) Average revenue (2) Total cost (3) Average cost (4) Total revenue
Last Answer : (1) Average revenue Explanation: Average Revenue refers to revenue received per unit of output sold. It is the same as Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Description : 'Law of demand' implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls
Last Answer : (3) price of the commodity rises Explanation: The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. That is, if ... of the commodity the price starts rising and it continues to rise till equilibrium price is reached.
Last Answer : Average revenue
Description : ‘Law of demand’ implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls
Last Answer : price of the commodity rises
Description : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit. (1) 0.5 (3) 5 (2) -0.5 (4) -5
Last Answer : (4) -5 Explanation: Marginal Utility = Change in Total Utility / Change in number of Units consumed. The first component of the formula is to calculate the change in total utility. The second component of the marginal utility formula is the change in the number of units that have been consumed.
Description : When price of a substitute of commodity ‘x’ falls, the demand for ‘x’ : (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises
Last Answer : falls