Economics - Practice Test | ExamPrepSheets

[#1501] When AR is constant, MR is

(A) equal to AR

(B) less than AR

(C) more than AR

(D) equal to zero

Correct Answer

(A) equal to AR

[#1502] Profit is denoted with which of the following symbol?

(A) Sigma

(B) Summation

(C) Pie

(D) Alpha

Correct Answer

(C) Pie

[#1503] If an increase in the price of blue jeans causes on increase in the demand for tennis shoes, then what types of goods are blue jeans and tennis shoes

(A) Complementary goods

(B) Inferior goods

(C) Best goods

(D) Replacement goods

Correct Answer

(D) Replacement goods

[#1504] If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, elasticity of demand is

(A) > 1

(B) = 1

(C) < 1

(D) zero

Correct Answer

(C) < 1

[#1505] Effective demand depends upon

(A) Desire for the commodity

(B) Means to purchase

(C) Willingness to use those means for that purchase

(D) All of the above

Correct Answer

(D) All of the above

Explanation

Solution: Effective demand depends upon Desire for the commodity, Means to purchase and Willingness to use those means for that purchase.

Economics - Study Mode

[#1501] When AR is constant, MR is

Correct Answer

[#1502] Profit is denoted with which of the following symbol?

Correct Answer

[#1503] If an increase in the price of blue jeans causes on increase in the demand for tennis shoes, then what types of goods are blue jeans and tennis shoes

Correct Answer

[#1504] If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, elasticity of demand is

Correct Answer

[#1505] Effective demand depends upon

Correct Answer

Explanation