Description : Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution (a) Unity ; (b) Less than 1 ; (c) More than 1 ; (d) Zero
Last Answer : (d) Zero
Description : Goods which are perfect substitute of each other will have rate of substitution (a) Unity ; (b) Less than 1 ; (c) More than 1 ; (d) Zero
Last Answer : (a) Unity ;
Description : If two goods are perfect substitutes for one another, the elasticity of substitution will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
Last Answer : (a) Infinite ;
Description : Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of ... elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3
Last Answer : (c) 5 ;
Description : Cross elasticity of a nearly perfect substitute products will be (a) Infinite ; (b) Zero ; (c) .> 1 ; (d)
Description : If two goods are not substitutes at all for one another, the elasticity of substitution will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
Last Answer : ; (b) Zero ;
Description : If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that (a) Cross price elasticity of demand is negative and both the products are complementary to each other ... price elasticity is positive and the products are complementary to each other ; (d) None of these
Last Answer : (a) Cross price elasticity of demand is negative and both the products are complementary to each other;
Description : The cross elasticity of substitute goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) > 0
Last Answer : (d) > 0
Description : If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated
Last Answer : (a) Complementary to each other ;
Description : If the cross elasticity between two products is positive then we can say that (a) The products are perfectly substitute of each other; (b) The products are complementary to each other; (c) Both the products are unrelated ; (d) Both are luxury items
Last Answer : (a) The products are perfectly substitute of each other;
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 : Two commodities X and Y goods can be inferred as close substitute of each other if - (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one ... fall in demand of other one (d) Increase in price of one leads to increase in demand of other one
Last Answer : (a) Increase in price of one leads to increase in demand of other and vice versa
Description : Sugar and tea are …………… goods (a) Complementary ; (b) Prefect substitute of each other ; (c) Both ; (d) Unrelated
Last Answer : (a) Complementary ;
Description : Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits
Last Answer : (c) Cost of production ;
Description : Cross elasticity of complementary products will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
Last Answer : (d) < 0
Description : Cross elasticity of unrelated products will be (a) Infinite ; (b) Zero ; (c) .> 1 ; (d)
Last Answer : (b) Zero ;
Description : The cross elasticity of complementary goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) = 0
Last Answer : (c) < 0 ;
Description : The income elasticity of demand of normal goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) > 0
Last Answer : ; (d) > 0
Description : The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0
Description : Luxury goods have --- -- degree of elasticity (a) High ; (b) Low ; (c) Moderate ; (d) Completely inelastic
Last Answer : (a) High ;
Description : Supply curve passing through any point on Y axis(Price) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero
Last Answer : (b) More than 1
Description : A supply curve passing through any point on X axis(quantity) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just one ; (d) Zero
Last Answer : (a) Less than 1 ;
Description : A supply curve passing through the origin will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero
Last Answer : (c) Just One ;
Description : Decreases in price of a product results in increased consumption of the product as the product becomes cheaper compared to other products. This effect is known as (a) Substitution effect ; (b) Income effect ; (c) Diminishing marginal utility concept; (b) Law of diminishing returns
Last Answer : (a) Substitution effect ;
Description : Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normal good) declines. She will most likely purchase more hamburgers; this is (a) a reflection of the income ... substitution effect; (c) a reflection of the income and substitution effects ; (d) None of above
Last Answer : (b) a reflection the substitution effect;
Description : An imposition of excise duty would effect the demand of a product due to ………….. (a) Income effect ; (b) Substitution effect ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : According to Modern approach, law of demand is caused by (a) Income effect ; (b) Substitution effect ; (c) Both ; (d) None
Description : Increase in price of a product reduces the purchasing power as a result of which demand for a product goes up. This effect is known as (a) Substitution effect ; (b) Income effect ; (c) Diminishing marginal utility concept (d)Law of diminishing returns
Last Answer : ; (b) Income effect ;
Description : The law of indifference is/are also know by- (a) Law of substitution ; (b) law of equimarginal utility ; (c) Law of diminishing marginal utility (d) All the three
Last Answer : (d) All the three
Description : Total profit of a firm in a perfect competitive market is – (a) Total revenue less total cost ; (b) Marginal revenue less marginal cost; (c) Total revenue less marginal cost ; (d) Total revenue less variable cost
Last Answer : (a) Total revenue less total cost ;
Description : Demand of salt is inelastic because (a) Of low price ; (b) No substitute ; (c) Absence of it makes food tasteless ; (d) All the three
Last Answer : (b) No substitute ;
Description : A goods can be considered a normal goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand
Last Answer : (a) An increase in demand ;
Description : A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand
Last Answer : ; (c) Decrease in demand ;
Description : Full employment is the level at which there is (a) Zero unemployment ; (b) Normal rate of unemployment; (c) Lease supply of labor ; (d) Demand for goods is less than supply.
Last Answer : (c) Lease supply of labor ;
Description : If the price elasticity of a product is greater than 1, we can say that (a) The products demand is sensitive to price variation; (b) Product demand is insensitive to price variation; (c) Demand and price move in same directions ; (d) None of this
Last Answer : (a) The products demand is sensitive to price variation;
Description : Price elasticity demand of product will be more elastic if it (a) Has no substitutes ; (b) Has number of substitutes ; (c) Is an item of necessity; (d) Is life saving Product
Last Answer : ; (b) Has number of substitutes ;
Description : Price elasticity of demand of a product will be more inelastic if (a) It forms a major part of consumer house hold budget; (b) It forms a very small part of consumers household budget; (c) It is inferior ; (d) It is for mass consumption
Last Answer : (b) It forms a very small part of consumers household budget;
Description : In case of Complementary goods cross elasticity of demand will be (a) Negative (b) Zero (c) Unitary (d) Infinite
Last Answer : (a) Negative
Description : Stock of both man made goods as well as natural resources like capital is called – (a) National wealth ; (b) National stock ; (c) No less no gain level ; (d) All the three
Last Answer : (b) National stock ;
Description : The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant
Last Answer : (a) Increases at higher price ;
Description : If the disposal income of a household decreases by 10% and the demand for X commodity remains same. The income elasticity of X is (a) 0 ; (b) 0.5 ; (c) 0.5 ; (d) 2.5
Last Answer : (a) 0 ;
Description : If the disposal income of a household increases by 10% and the demand for X commodity increased by 10% the income elasticity of X is (a) 1.5 ; (b) 0.5 ; (c) 1.5 ; (d) 1.0
Last Answer : (d) 1.0
Description : If the disposal income of a household increases by 10% and the demand for X commodity increased by 25%. The income elasticity of X is (a) 1.5 ; (b) -0.5 ; (c) 2.5 ; (d) -2.5
Last Answer : ; (c) 2.5 ;
Description : If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0
Last Answer : (b) -0.5 ;
Description : If prices of Eggs rises from `25 per dozen to `30 per dozen, the demand for vegetable burger increases from 30 per day to 40 per day, then the cross elasticity of eggs and vegetable burger is (a) 1.5 ; (b) 1.25 ; (c) 1.65 ; (d) 1.86
Last Answer : (c) 1.65 ;
Description : If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is (a) 1.5 ; (b) 1.25 ; (c) 1.0 ; (d) 1.59
Last Answer : (b) 1.25 ;
Description : If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 5 ; (d) 1
Description : An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 3 ; (d) 1
Last Answer : ; (c) 3 ;
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 ;
Description : In question No. 201 if at `15,000, the dealer is prepared to supply on 1100 TV sets, the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.4 ; (d) 1.5
Last Answer : ; (c) 0.4 ;