Deck 6: Economics: Demand, Supply, and Market Equilibrium

Question 1

The Wealth of Nations is the work of:

A)Marshall
B)J.S. Mill
C)Adam Smith
D)Lionel Robins

Answer 1

Adam Smith

Question 2

Indifference Approach is related with:

A)Marshall
B)J.R. Hicks
C)Samuelson
D)Sismondi

Answer 2

J.R. Hicks

Question 3

Which one of the following is an example of close substitute:

A)Tea and Coffee
B)Milk and water
C)Bread and Butter
D)Pen and pencil

Answer 3

Tea and Coffee

Question 4

The addition to the total revenue by the sale of an additional unit is:

A)Total revenue
B)Average revenue
C)Value added
D)Marginal revenue

Question 5

Which cost is to be incurred by a firm even if output is zero:

A)Opportunity cost
B)Fixed cost
C)Variable Cost
D)Total cost

Question 6

The marginal utility theory is contributed by:

A)Marshall
B)David Ricardo
C)Adam Smith
D)Samuelson

Question 7

The factor earning of entrepreneur is:

A)Rent
B)Wage
C)Interest
D)Profit

Question 8

The Scarcity definition of Economics is the contribution of:

A)Samuelson
B)Adam Smith
C)Lionel Robbins
D)Marshall

Question 9

Average Revenue is equal to:

A)Price
B)Cost
C)Profit
D)None of these

Question 10

Total Revenue is the maximum when Marginal Revenue is ----------

A)Positive
B)Negative
C)One
D)Zero

Question 11

Market economy is also known as:

A)Socialist economy
B)Capitalist economy
C)Mixed economy
D)Developing economy

Question 12

For complementary goods, the cross elasticity of demand:

A)Positive
B)Negative
C)Zero
D)None

Question 13

The demand curve for Giffen's goods:

A)Vertical
B)Horizontal
C)Negative slope
D)Positive slope

Question 14

Income elasticity of demand for inferior goods is:

A)Negative
B)Positive
C)Zero
D)Unity

Question 15

The change in demand is due to the change in :

A)Income
B)Own price
C)Prices of related products
D)Expectations

Question 16

A market:

A)Necessarily refers to a meeting place between buyer and sellers
B)Does not necessarily refers to a meeting place between buyer and sellers
C)Extends over the entire country
D)Extends over a city

Question 17

A fall in the price of the commodity holding everything else constant results in:

A)Increase in demand
B)Decrease in demand
C)Increase in quantity demanded
D)Decrease in quantity demanded