Deck 2: Economics Terminology: Markets, Equilibrium, Supply,cost ,demand and Elasticity

Question 1

For complementary goods, the cross elasticity of demand:

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

Answer 1

Negative

Question 2

If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be:

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

Answer 2

Zero

Question 3

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

Answer 3

Does not necessarily refers to a meeting place between buyer and sellers

Question 4

Wear and tear of capital due to constant use means:

A)Intermediate consumption
B)Final consumption
C)Depreciation
D)Devaluation

Question 5

Primary sector includes:

A)Agriculture
B)Industry
C)Services
D)Banking

Question 6

In India, the current base year is:

A)1980-81
B)1993-94
C)1999-2000
D)2004-05

Question 7

Wages and prices are ----------, according to the Classicals.

A)Rigid
B)Flexible
C)Both
D)All of these

Question 8

Say's Law of market was proved wrong by:

A)Industrial revolution
B)Great Depression
C)Green revolution
D)Gulf war