Economics - Practice Test | ExamPrepSheets

[#1211] Which of the following statement is false?

(A) A consumer has only one indifference curve

(B) A consumer possesses a preference map

(C) The marginal rate of substitution is equal to the magnitude of the slope of the indifference curve

(D) The diminishing marginal rate of substitution means that the marginal rate of substitution decreases as more of the good is consumed

Correct Answer

(A) A consumer has only one indifference curve

[#1212] Match the following. List-I List-II a. Input-output isoquant 1. Arrow and Chenery b. CES production function 2. Loniet c. Duopoly model 3. P. Sweezy d. Kinked demand curve 4. Cournot

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

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

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

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

Correct Answer

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

[#1213] Derived demand means

(A) More demand due to inflation

(B) Aggregate demand for goods

(C) More demand due to higher income

(D) Demand for a factor of production

Correct Answer

(D) Demand for a factor of production

[#1214] Match the following. List-I List-II a. Indifference curve 1. Slopes downward to the right b. Demand curve 2. P = AR = MR = d c. Perfect competition 3. Oligopoly d. Price leadership 4. Convex to the origin

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

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

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

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

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

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

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

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

Correct Answer

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

[#1215] The price elasticity of demand is the

(A) ratio of the percentage change in quantity demanded to the percentage change in price

(B) ratio of the change in price to the change in quantity demanded

(C) ratio of the change in quantity demanded to the change in price

(D) ratio of the percentage change in price to the percentage change in quantity demanded

Correct Answer

(A) ratio of the percentage change in quantity demanded to the percentage change in price

Economics - Study Mode

[#1211] Which of the following statement is false?

Correct Answer

[#1212] Match the following. List-I List-II a. Input-output isoquant 1. Arrow and Chenery b. CES production function 2. Loniet c. Duopoly model 3. P. Sweezy d. Kinked demand curve 4. Cournot

Correct Answer

[#1213] Derived demand means

Correct Answer

[#1214] Match the following. List-I List-II a. Indifference curve 1. Slopes downward to the right b. Demand curve 2. P = AR = MR = d c. Perfect competition 3. Oligopoly d. Price leadership 4. Convex to the origin

Correct Answer

[#1215] The price elasticity of demand is the

Correct Answer