43
Comparison of interpersonal utility is impossible because
- A. utility is measured in utils
- B. marginal utility is not observable
- C. utility is subjectively determined
- D. individual income differ
44
If the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be
- A. perfectly elastic
- B. inelastic
- C. elastic
- D. perfectly inelastic
45
A rise in income will, ceteris paribus, bring about
- A. a movement along the demand curve
- B. a leftward shift of the demand curve
- C. a rightward shift of the demand curve
- D. no effect on the demand curve
46
If the quantity of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2% rise in price, it shows that there is a change in
- A. consumers' income
- B. demand
- C. consumers' tastes
- D. quantity damanded
47
The sign of the slope of a graph in economic analysis is important because it
- A. shows whether a good is normal or inferior
- B. shows the relationship between variables
- C. reveals the magnitude of the change between variables
- D. helps to determine the unit of measurement of variables
48
The privatization of public enterprises will lead to efficient management of resources in the economy.
This statement can best be described as
- A. normative reasoning
- B. inductive reasoning
- C. deductive reasoning
- D. positive reasoning
49
A major disadvantage of a socialist economy is that
- A. corruption is rampant
- B. consumer's sovereignty is lost
- C. income inequality is entrenched
- D. there is high level of unemployment