When the labour supply curve bends backwards
(A) Income becomes an inferior good
(B) Work becomes an inferior commodity
(C) Leisure becomes an inferior commodity
(D) People become lazy at higher salary level
Write the correct statement.
(A) The value of a commodity depends on its price.
(B) The value of a good depends entirely on the substitute goods.
(C) A thing will have value (importance) only when someone wants to have it.
(D) A commodity will have value only if it is scarcer than the demand.
When do markets fail?
(A) when they equalize the surplus of all consumers and producers
(B) when they increase the surplus of all consumers and producers
(C) when they cannot maximize the surplus of all consumers and producers
(D) when they maximize the surplus of all consumers and producers
What are the examples of car and diesel?
(A) demand
(B) supply
(C) joint supply
(D) joint demand
Firms that make payments to outsiders for their goods and services are called :
(A) Actual cost
(B) Economic cost
(C) Explicit cost
(D) Implicit cost
What is not the condition of a fixed cost?
(A) Salaries of administrative staff
(B) Rent of factory building.
(C) Wealth tax
(D) Electric charge
Which of the following is an inverted 'U' shaped curve?
(A) average cost
(B) marginal cost
(C) total cost
(D) total cost
MP curve is an inverted U-shaped curve.
The demand for an inferior good falls when
(A) price increases
(B) income increases
(C) the price decreases
(D) the price decreases
In economics, the demand for inferior goods decreases as income increases or the economy improves. When this happens, consumers will be more willing to spend on more costly substitutes.
The demand for which of the following goods is elastic?
(A) electricity
(B) medicine
(C) rice
(D) match box
Among the given options, only the demand for electricity is elastic, whereas the demand for medicine, rice and matchbox is inelastic.
Who propounded the innovative theory of profits?
(A) J.A. schumpeter
(B) P.A. samuelson
(C) Alfred Marshall
(D) David Rickards
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