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Economics Mcqs

Which of the following describes an increase in technological knowledge ?

Comparative GDP, Economics Mcqs /
Which of the following describes an increase in technological knowledge ?

A. A farmer sends his child to agricultural college and the child returns to work on the farm
B. A farmer hires another day laborer
C. A farmer buys another tractor
D. A farmer discovers that it is better to plant in the spring rather than in the fall

Which of the following describes an increase in technological knowledge ? Read More »

Comparative GDP, Economics Mcqs

If consumption when young and when old are both normal goods, an increase in the interest rate ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
If consumption when young and when old are both normal goods, an increase in the interest rate ?

A. will always increase the quantity of saving
B. will always decrease the quantity of saving
C. will increase the quantity of saving if the substitution effect outweighs the income effect
D. will increase the quantity of saving if the income effect outweighs the substitution effect

If consumption when young and when old are both normal goods, an increase in the interest rate ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

A. an inferior effect
B. a Geffen good
C. a normal good
D. none of these answers

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

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 substitution effect is represented by the movement from point ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
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 substitution effect is represented by the movement from point ?

A. Z to point X
B. X to point X
C. X to point Z
D. Y to point X

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 substitution effect is represented by the movement from point ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs