Economics - Study Mode

[#206] Which one is not a assumption of the theory of demand based on analysis of indifference curves?
Correct Answer

(C) Constant marginal utility of money

Explanation

Solution: Constant marginal utility of money is not a assumption of the theory of demand based on analysis of indifference curves. An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent.

[#207] Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is
Correct Answer

(B) Different

Explanation

Solution: Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is different.

[#208] A proper measure of economic progress of a country is
Correct Answer

(D) Per capita real income

[#209] Match the following. List-I (Economist) List-II (Statement) a. Robinson 1. The elasticity of demand at any price or at any output is the proportional change of amount purchased in response to a small change in price divided by the proportional change in price b. Boulding 2. The elasticity of demand may be defined as the percentage change in quantity demanded, which would result from 1% change in price c. Cairn Cross 3. The elasticity of demand for a commodity is the rate at which the quantity bought changes as the price changes d. Marshall 4. The elasticity for demand in a market is large or small according to how the amount of demand increases for a given fall in price and diminishes more or less for a given rise in price
Correct Answer

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

[#210] Match the following. List-I List-II a. Kinked demand curve 1. Prof. Samuelson b. Duopoly model 2. Paul M. Sweezy c. Managerial theory of firm 3. Cournot d. Social welfare function 4. Williamson
Correct Answer

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