Economics - Practice Test | ExamPrepSheets

[#1276] Other things equal, if a good has more substitutes, its price elasticity of demand is

(A) Larger

(B) Smaller

(C) Zero

(D) Unity

Correct Answer

(A) Larger

Explanation

Solution: Other things equal, if a good has more substitutes, its price elasticity of demand is larger.

[#1277] Which is the most commonly accepted principle of business cycle?

(A) Hatrey's business trade cycle theory

(B) Hick's business trade cycle theory

(C) Hayek's business cycle theory

(D) Keynes's business cycle theory

Correct Answer

(B) Hick's business trade cycle theory

[#1278] Which of the following statements is correct?

(A) Malthus's population theory does not directly depend on the law of generation

(B) Malthus population theory compared population with the total output of a country

(C) According to Malthus there is a direct relationship between standard of living and population

(D) In the theory of optimum population, the population is compared from the food grains of the country

Correct Answer

(C) According to Malthus there is a direct relationship between standard of living and population

[#1279] Which of the following are features of utility? 1. Subjective in nature 2. Based on urgency of wants 3. Same as usefullness 4. Qualitative Select the correct answer

(A) 1, 2 and 4

(B) 2, 3 and 4

(C) 1, 3 and 4

(D) All of the above

Correct Answer

(A) 1, 2 and 4

[#1280] Which one of the following best describes best opportunity cost to society of building a new school?

(A) The increased taxation to pay for the school

(B) The money that was spent on building the school

(C) The other goods that could have been produced with the resources used to build the school

(D) The running cost of the school when it is opened

Correct Answer

(C) The other goods that could have been produced with the resources used to build the school

Economics - Study Mode

[#1276] Other things equal, if a good has more substitutes, its price elasticity of demand is

Correct Answer

Explanation

[#1277] Which is the most commonly accepted principle of business cycle?

Correct Answer

[#1278] Which of the following statements is correct?

Correct Answer

[#1279] Which of the following are features of utility? 1. Subjective in nature 2. Based on urgency of wants 3. Same as usefullness 4. Qualitative Select the correct answer

Correct Answer

[#1280] Which one of the following best describes best opportunity cost to society of building a new school?

Correct Answer