A rational consumer is one who
- A. spends his income to maximize satisfaction
- B. is not influenced by advertisemment
- C. behaves in a particular way all the time
- D. knows the price of all goods and buys the cheapest
When total utility is constant, it means marginal utility is
- A. increasing
- B. zero
- C. decreasing
- D. one
A consumer purchasing a commodity X will maximize his satisfaction if
- A. Px = MUx
- B. Px ≥ MUx
- C. Px > MUx
- D. Px < MUx
price fixed above the equilibrium is to
- A. protect agricultural producers
- B. discourage agricultural producers
- C. lower the price of agricultural producers
- D. favour consumers
if the current price of an apple is twice that of last year, it implies that the value of money is
- A. stable
- B. falling
- C. rising
- D. getting stronger
A supply curve which is vertical has an elasticity co-efficient of
- A. 0.0
- B. 0.5
- C. 1.5
- D. 2
Palm oil and palm kernel have
- A. competitive supply
- B. excess supply
- C. joint supply
- D. composite supply
If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is
- A. 3.0
- B. 2.5
- C. 2.3
- D. 1.5
The co-efficient of income elasticity of demand for inferior goods is
- A. positive
- B. equal to one
- C. less than one
- D. negative
A normal demand curve slopes
- A. downward from left to right
- B. upwards from right to left
- C. downwards from right to left
- D. upwards from left to right
An arrangement of data in rows and columns is referred to as
- A. graph
- B. bar chart
- C. pie chart
- D. table
The production possibility curve (PPC) indicates that as more of one good is produced.
- A. less of the other goods is produced
- B. the same quantity of the other good is produced
- C. more of the other good is produced
- D. none of the other good is produced
The difference between the money cost and the real cost of any item is that
- A. real cost is the alternative forgone while the money cost is the actual amount paid for buying the item
- B. the real cost is the opportunity cost, while the money cost is the marginal cost
- C. money cost is the opportunity cost, while the real cost is the actual cost in monetary terms
- D. money cost is always greater than the real cost