Q.       Production is a function of: A.           Profits B.            Costs C.            Inputs ...

Q. The Revealed Preference Theory deduces the inverse price-quantity relationship from: A.           Assumption of indifference B.            Postulate of utility maximization ...

Q. An indifference curve slopes down towards right since more of one commodity and less of another result in: A.           Same satisfaction       ...

Q.        The consumer is in equilibrium at a point where the budget line: A.           Is above an indifference curve          B.            ...

Q.        The elasticity of substitution between two perfect substitutions is: A.           Zero     B.            Greater than zero ...

Q.        Which one is not a assumption of the theory of demand based on analysis of indifference curves? A.           Given scale of preferences as between different combinations of two goods    ...

Q.        The budget-line is also known as the: A.           Iso-utility curve          B.            Production possibility line ...

Q.        In the case of a Giffen good, the demand curve will be: A.           Horizontal      B.            Downward-slping to the right ...

Q.         If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be: A.           Horizontal      ...

Q.        In the case of an inferior good, the income elasticity of demand is: A.           Positive             B.            ...

Q. Total utility is maximum when: A.           Marginal utility is zero           B.            Marginal utility is at its highest point ...

Q. In respect of which of the following category of goods is consumer's surplus highest? Giffen goods         NecessitiesLuxuries  Prestige goods Answer: Necessities