Economics - Study Mode

[#256] Equilibrium with excess capacity arises in
Correct Answer

(B) cut-throat competition

[#257] The major factors affecting demand
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(D) All of these

[#258] The statement that the law of diminishing returns is applied to all fields of production was stated by
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(A) Walras

[#259] Match the following. List-I List-II a. Convexity of the indifference curve to origin 1. Indifference curve analysis b. Quantity of certain goods sacrificed for a large quantity of other goods 2. Consumer's equilibrium c. Equality of the ratio of the marginal utilities with that of the prices of the two goods 3. Substitutability/Complementarity of the two goods d. Separation of substitution and income effects from the total price effect 4. Marginal rate of substitution
Correct Answer

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

[#260] Suppose, there is a situation where two individuals are engaged in exchange and if individual 1 is a price-maker and individual 2 is a price-taker, equilibrium
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(A) takes place on the offer curve of individual 1