Economics - Study Mode

[#1121] Match the following. List-I List-II a. Cross elasticity is zero 1. Price = AVC b. Shut down point 2. Two commodities are independent c. Slutskey theorem 3. Transformation line d. Production possibility 4. Substitution effect
Correct Answer

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

[#1122] Which of the following economists has termed fixed cost as complementary cost?
Correct Answer

(A) Marshall

[#1123] In the kinked demand curve model, if one firm reduces its price
Correct Answer

(A) other firms will also reduce their price

[#1124] If the marginal product of labour is below the average product of labour, it must be true that
Correct Answer

(C) The average product of labour is falling

[#1125] When both the price of a substitute and the price of a complement of commodity X rise, the demand for X-
Correct Answer

(A) rises