Question 1

When price is below equilibrium level, there will be:

Accepted Answer

A) Surplus commodity in the market 
B) Supply curve will shift 
C) Demand curve will shift 
D) Shortage of commodity in the market 
A) Surplus commodity in the market 
B) Supply curve will shift 
C) Demand curve will shift 
D) Shortage of commodity in the market

Question 2

Factor market will be in equilibrium when

Accepted Answer

A) Demand for factors is less than its supply 
B) Demand for factors is equal to supply of factors 
C) Supply of factors is less than for it 
D) All of the above 
A) Demand for factors is less than its supply 
B) Demand for factors is equal to supply of factors 
C) Supply of factors is less than for it 
D) All of the above

Question 3

The firm is in equilibrium in the factor market when it employs units of labour upto the point where

Accepted Answer

A) The marginal revenue product of labour is equal to its marginal cost 
B) The marginal revenue product of labour is more than its marginal cost 
C) The marginal revenue product of labour is less than its marginal cost 
D) none 
A) The marginal revenue product of labour is equal to its marginal cost 
B) The marginal revenue product of labour is more than its marginal cost 
C) The marginal revenue product of labour is less than its marginal cost 
D) none

When price is below equilibrium level, there will be:

Factor market will be in equilibrium when

The firm is in equilibrium in the factor market when it employs units of labour upto the point where

Economic Concepts and Theories

Understanding Rent, Capital, and Profits in Economics

Market Equilibrium and Welfare Economics

Welfare Economics and Efficiency Allocation

Key Concepts in Investment and Economic Analysis

Project Evaluation and International Trade Theories

International Trade Theory and Practice

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Exam 3: Factor and Product Markets, Equilibrium, and Production Factors

When price is below equilibrium level, there will be:

Factor market will be in equilibrium when

The firm is in equilibrium in the factor market when it employs units of labour upto the point where

Economic Concepts and Theories

Understanding Rent, Capital, and Profits in Economics

Market Equilibrium and Welfare Economics

Welfare Economics and Efficiency Allocation

Key Concepts in Investment and Economic Analysis

Project Evaluation and International Trade Theories

International Trade Theory and Practice

Filters