18. An IC, in case of perfect substitution, can be:
(a) concave to the slope(b) concex to the slope(c) positively sloped(d) negatively sloped (in)
18. An IC, in case of perfect substitution, can be: Read More »
17. During economic bads, an IC can be:
(a) sloping downward (b) sloping upward(c) positively sloped (d) negatively sloped
17. During economic bads, an IC can be: Read More »
16. In case of complementary goods, an IC can be:
(a) straight line (b) convex to origin(c) concave to origin (d) L-shaped
16. In case of complementary goods, an IC can be: Read More »
15. The ordinal utility function can be as:
(a) U = xj – X₂ (b) U = x1 + x2(c) U = y1 + y1 (d) U = x1 x2
15. The ordinal utility function can be as: Read More »
14. The budget constraint equation is:
(a) xPx+yPy = 1 (b) xPx+yPy>1(c) xPx+yPy <1 (d) xPx + yPy = 0
14. The budget constraint equation is: Read More »
13. The amount of income left over for a consumer in equilibrium is:
(a) his consumer surplus (b) zero(c) allocated to all goods evenly (d) excess demand
13. The amount of income left over for a consumer in equilibrium is: Read More »
12. In case of two goods, following utility approach, a consumer is in equilibrium when:
(a) MUx/Px < MUy/Py (b) MUx/Px = MUy/Py (c) MUy/py > MUx/Px (d) MUx/MUx < Px/Py
12. In case of two goods, following utility approach, a consumer is in equilibrium when: Read More »
10. Diamonds are more expensive than water because:
(a) they yield higher total utility(b) they yield higher marginal utility(c) they are more useful (d) households are irrational
10. Diamonds are more expensive than water because: Read More »
9. The Law of Diminishing Marginal Utility implies that the marginal utility of a good decreases as:
(a) it gets more expensive(b) a household consumes more of it(c) preference changes(d) a household’s income goes up