A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes
(b) the consumer’s preference change
© the consumer’s income changes
(d) the demand curve for one of the goods shifts rightward

1 Answer

Answer :

(a) the price of one good changes

Related questions

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

Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases

Last Answer : © price falls and demand also falls

Description : Change in consumers tastes and preference causes – of the particular goods (a) Change in quantity demanded ; (b) Shift in demand curve ; (c) Change in price ; (d) No effect on quantity demanded

Last Answer : (b) Shift in demand curve ;

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 : 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 law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve

Last Answer : (b) Law of demand

Description : Marginal utility means (a) change in total utility due to one unit change in consumption (b) change in total utility due to no change in consumption © change in utility due to change in price (d) change in utility due to change in income

Last Answer : (a) change in total utility due to one unit change in consumption

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 : 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 : When only price of the commodity changes

Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease

Last Answer : (b)will necessarily increase

Description : Engel’s curve illustrates the relationship between (a) Consumption and Utility (b) Production and Productivity (c) Income and Consumption (d) Income and Production

Last Answer : (c) Income and Consumption

Description : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.

Last Answer : (a) Higher aggregate demand.

Description : A rightward shift in the supply schedule indicates (a) a decrease in supply (b) an increase in supply © an increase in quantity supply (d) a decrease in quantity supply

Last Answer : (b) an increase in supply

Description : When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.

Last Answer : © Domestic price.

Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite

Last Answer : (a) equal to zero

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 : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.

Last Answer : (b) Level of income.

Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.

Last Answer : (a) The cost of borrowing equals marginal efficiency of capital

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 : 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 : 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 : Law of diminishing marginal utility is based on the assumption that a. Tastes change over time b. Consumption is continuous c. Different units of goods consumed are homogeneous Of these statements: A.Only a is true B.a and c are true C.b and c are true D.All are true

Last Answer : D.All are true

Description : The concept that under a system of free enterprise, it is consumers who decide what goods and services shall be produced and in what quantities is known as (1) Consumer Protection (2) Consumer’s Decision (3) Consumer Preference (4) Consumer’s Sovereignty

Last Answer : Consumer’s Sovereignty

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 : The quantity demanded depends on (a) its price (b) income © price of other goods (d) all of the above

Last Answer : (d) all of the above

Description : Tha Law of Demand is based on - (1) Manufacturer's preference (2) Seller's preference (3) Supplier's preference (4) Consumer's preference

Last Answer : (4) Consumer's preference Explanation: The Law of Demand states that, all else being equal, as the price of a product increases, quantily demanded lowers; likewise, as the price ... services to purchase. Each consumer will purchase different things because individual preferences and incomes differ.

Description : Tha Law of Demand is based on (1) Manufacturer’s preference (2) Seller’s preference (3) Supplier’s preference (4) Consumer’s preference

Last Answer : Consumer’s preference

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

Description : The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Last Answer : © Change in consumption/ Change in income

Description : An increase in the quantity supplied suggests - (1) a leftward shift of the supply curve (2) a movement up along the supply curve (3) a movement down along the supply curve (4) a rightward shift of the supply curve

Last Answer : (2) a movement up along the supply curve Explanation: Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. But unlike the law of ... Producers supply more at a higher price because selling a higher quantity at an higher price increases revenue.

Description : An increase in the quantity supplied suggests : (1) a leftward shift of the supply curve (2) a movement up along the supply curve (3) a movement down along the supply curve (4) a rightward shift of the supply curve

Last Answer : a movement up along the supply curve

Description : In the law of demand, the statement "Other things remain constant" means - (1) income of consumer should not change (2) price of other goods should not change (3) taste of consumer should not change (4) All of the above

Last Answer : (4) All of the above Explanation: In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher ... of good demanded by the consumer will be negatively correlated to the change in the price of the good.

Description : In the law of demand, the statement “Other things remain constant” means (1) income of consumer should not change (2) price of other goods should not change (3) taste of consumer should not change (4) All of the above

Last Answer : All of the above

Description : Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal ... consume decreases as income increases (d) The average propensity to consume increases as income increases

Last Answer : d) The average propensity to consume increases as income increases

Description : If the Keynesian consumption function is, C=10+.8Y, if income is Rs 1000/- what is total consumption. (a) Rs .8/- (b) Rs 800/- © Rs 810/- (d) Rs .81/

Last Answer : © Rs 810/-

Description : Assume that the consumption function is of the form, C= 50+.8Y. If income is Rs 1000/- then consumption is,- (a) Rs 50/- 9b) Rs 1050/- © Rs 50/- (d) Rs 850/-

Last Answer : (d) Rs 850/-

Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Last Answer : (a) Increase in consumption due to one unit increase in income.

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 : What are Capital goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumer goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above

Last Answer : : b) Goods such as tools, machinery, etc which are used to create final consumer goods

Description : What are consumption goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumption goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above

Last Answer : : c) Goods and services that are consumed fully when purchased by the consumers

Description : In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.

Last Answer : (b) Aggregate demand.

Description : According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.

Last Answer : (b) level of income.

Description : Which is not added in the calculation of national income in India? (a) The value of goods and services. (b) The sold value of old fridge. © Services rendered by the housewives (d) Both (b) and (c)

Last Answer : (d) Both (b) and (c)

Description : If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier

Last Answer : (d) Multiplier

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 : Elasticity of demand is the degree of responsiveness of demand of a commodity to a - (1) change in consumers' wealth (2) change in the price of substitutes (3) change in consumers' tastes (4) change in its price

Last Answer : (4) change in its price Explanation: The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of demand to change in price. Its measure depends upon comparing ... demand is the ratio of percentage change in amount demanded to a percent-age change in price.

Description : Elasticity of demand is the degree of responsiveness of demand of a commodity to a (1) change in consumers’ wealth (2) change in the price of substitutes (3) change in consumers’ tastes (4) change in its price 

Last Answer : change in its price

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 : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite

Last Answer : (b) positive

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;