Economics - Practice Test | ExamPrepSheets

[#946] A consumer's spending is restricted because of

(A) Utility maximization

(B) Budget constraints

(C) Demand curve

(D) Marginal utility

Correct Answer

(B) Budget constraints

[#947] When a consumer increased units of X commodity by giving up some units of Y commodity and even to attain the same level of satisfaction, the marginal rate of substitution will be calculated by

(A) $$frac{{{ ext{Change}},{ ext{in X commodity}}}}{{{ ext{Marginal utility}},{ ext{of Y commodity}}}}$$

(B) $$frac{{{ ext{Change}},{ ext{in Y commodity}}}}{{{ ext{Marginal utility}},{ ext{of X commodity}}}}$$

(C) $$frac{{{ ext{Change}},{ ext{in X commodity}}}}{{{ ext{Change}},{ ext{in Y commodity}}}}$$

(D) $$frac{{{ ext{Change}},{ ext{in Y commodity}}}}{{{ ext{Change}},{ ext{in X commodity}}}}$$

Correct Answer

(D) $$frac{{{ ext{Change}},{ ext{in Y commodity}}}}{{{ ext{Change}},{ ext{in X commodity}}}}$$

[#948] Price determination of ten favours public interest because it

(A) allows some products to be produced that would otherwise not be produced in the economy due to the fear of making losses

(B) opens consumption possibilities to consumers that would otherwise not be inaccessible (or unaffordable), if a single price prevailed in the market

(C) allows firms to make supernormal profits, which in turn allows them to sustain price wars when breaking into new markets

(D) All of the above

Correct Answer

(D) All of the above

[#949] The Human Development Index (HDI) is introduced by:

(A) UNDP

(B) UNICEF

(C) IMF

(D) World Bank

Correct Answer

(A) UNDP

[#950] Match the following. List-I List-II a. Problem of resource allocation 1. How to produce b. Problem of choice of techniques 2. For whom to produce c. Problem of distribution of income 3. Scarcity d. Problem of choice 4. What to produce

(A) a-4, b-2, c-1, d-3

(B) a-3, b-1, c-2, d-4

(C) a-4, b-1, c-2, d-3

(D) a-2, b-3, c-1, d-4

Correct Answer

(C) a-4, b-1, c-2, d-3

Economics - Study Mode

[#946] A consumer's spending is restricted because of

Correct Answer

[#947] When a consumer increased units of X commodity by giving up some units of Y commodity and even to attain the same level of satisfaction, the marginal rate of substitution will be calculated by

Correct Answer

[#948] Price determination of ten favours public interest because it

Correct Answer

[#949] The Human Development Index (HDI) is introduced by:

Correct Answer

[#950] Match the following. List-I List-II a. Problem of resource allocation 1. How to produce b. Problem of choice of techniques 2. For whom to produce c. Problem of distribution of income 3. Scarcity d. Problem of choice 4. What to produce

Correct Answer