Economics - Study Mode
[#431] Which of the following statements summarizes Robbins definition?
Correct Answer
(D) "Economics is the study of the allocation of scarce resources and the determination of employment, income and economy development"
[#432] What is the elasticity of demand for luxury items like high-class furniture?
Correct Answer
(B) Highly-Elastic
[#433] We may define economics as a study of the problems arising from
Correct Answer
(B) production, distribution and exchange
[#434] Assertion (A): Long run equilibrium of the industry in a perfectly competitive market occurs at the point where price equals minimum long run average cost. Reason (R): In this position of zero economic profit, there is no tendency on the part of any existing firm to stage an exit, and no potential entrant wants to enter the industry.
Correct Answer
(A) Both A and R are individually true and R is the correct explanation of A
[#435] The law of diminishing returns refers to an eventual fall in
Correct Answer
(C) Marginal product of the variable factor