Question 1

When an individual's income rises, when everything else remains the same, his demand for normal goods:

Accepted Answer

A) rises 
B) falls 
C) remains the same 
D) any of the above is possible 
A) rises 
B) falls 
C) remains the same 
D) any of the above is possible

Question 2

When there are only few sellers of the commodity, the market is called:

Accepted Answer

A) monopoly 
B) duopoly 
C) oligopoly 
D) monopsony 
A) monopoly 
B) duopoly 
C) oligopoly 
D) monopsony

Question 3

If a positively sloped linear supply curve passes through the origin, the elasticity of supply is

Accepted Answer

A) inelastic 
B) elastic 
C) unitary elastic 
D) perfectly elastic 
A) inelastic 
B) elastic 
C) unitary elastic 
D) perfectly elastic

Question 4

When an individual's income falls, when everything else remains the same, his demand for inferior goods:

Accepted Answer

A) increases 
B) decreases 
C) remains unchanged 
D) cannot say 
A) increases 
B) decreases 
C) remains unchanged 
D) cannot say

Question 5

If the income elasticity of demand is greater than one, then the commodity is:

Accepted Answer

A) necessity 
B) luxury 
C) inferior 
D) non-related commodity 
A) necessity 
B) luxury 
C) inferior 
D) non-related commodity

When an individual's income rises, when everything else remains the same, his demand for normal goods:

When there are only few sellers of the commodity, the market is called: