A. Indifference curves are downward sloping
B. indifference curves are bowed outward
C. Indifference curves do not cross each other
D. Higher indifference curve is preferred to lower ones
Economics Mcqs
If a firm takes over a competitor then, according to porter’s 5 forces model ?
A. Buyer power is higher
B. Supplier power is higher
C. Substitute threat is higher
D. Rivalry is lower
In monopolistic competition ?
A. There are few sellers
B. There are few buyers
C. There is one seller
D. There are many sellers
Which of the following is true about the consumer’s optimum consumption bundle? At the optimum ?
A. the slope of the indifference curve equals the slope of the budget constraint
B. the indifference curve is tangent to the budget constraint
C. the relative prices of the two goods equals the marginal rate of substitution
D. none of these answers are true
E. all of these answers are true
If a long run average cost curve is falling form left to right this is an example of ?
A. increasing returns to scale
B. decreasing returns to scale
C. constant returns to scale
D. the minimum efficient scale
If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?
A. a complementary good
B. an inferior good
C. a normal good
D. a substitute good
When average cost is falling marginal cost is …….. and when average cost is rising marginal cost is?
A. greater than average cost, greater than average cost
B. less than average cost, greater than average cost
C. less than average cost, less than average cost
D. greater than average cost, less than average cost
Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?
A. Z
B. X
C. Y
D. the optimal point cannot be determined from this graph
Short run average total costs are equals to the sum of …. and …..?
A. Short run opportunity costs, profit
B. Short run variable costs, profit
C. Short run average variable costs, profit
D. Short run average variable costs, profit run average fixed costs
Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?
A. X to point Y
B. X to point Z
C. Y to point X
D. Z to point X