Economics - Study Mode

[#1271] Some economists refer to iso-product curves as
Correct Answer

(B) Production indifference curve

Explanation

Solution: Some economists refer to iso-product curves as Production indifference curve. A given quantity of output may be produced with different combinations of factors. Iso-quant curves are also known as Equal-product or Iso-product or Production Indifference curves.

[#1272] According to Joseph Schumpeter, profit is the reward for
Correct Answer

(A) Innovation

Explanation

Solution: According to Joseph Schumpeter, profit is the reward for Innovation. He believed that an entrepreneur can earn economic profits by introducing successful innovations.

[#1273] If quantity demanded is completely unresponsive to changes in price, demand is
Correct Answer

(D) Perfectly inelastic

Explanation

Solution: If quantity demanded is completely unresponsive to changes in price, demand is Perfectly inelastic. Perfectly inelastic demand means that quantity demanded remains the same when price increases or decreases. Consumers are completely unresponsive to changes in price.

[#1274] Which of the following is Microeconomics concerned with?
Correct Answer

(D) None of the above

Explanation

Solution: Microeconomics is primarily concerned with the factors that affect individual economic choices, the effect of changes in these factors on the individual decision makers, how their choices are coordinated by markets, and how prices and demand are determined in individual markets.

[#1275] Which of the following is also known as plant curves?
Correct Answer

(B) Short-run average cost (SAC) curves

Explanation

Solution: Short-run average cost (SAC) curves is also known as plant curves. These SACs are also called plant curves. In the short run, a firm can operate on any SAC, given the size of the plant.