Question:

“Utility or satisfaction is a subjective concept; therefore it could only beranked”. The statement supports

A.

cardinal utility theorist

B.

ordinal utility theorist

C.

behavioral theorist of the firm

D.

none of the above

Answer» b. ordinal utility theorist

Question:

In the case of perfect complementaries, the MRS between goods is:

A.

Zero

B.

Positive

C.

Negative

D.

None

Answer» a. Zero

Question:

Economic cost include both

A.

explicit cost and implicit cost

B.

fixed cost and variable cost

C.

explicit cost and prime cost

D.

money cost and sunk cost

Answer» a. explicit cost and implicit cost

Question:

In Keynesian terminology, investment means:

A.

Financial investment

B.

Real investment

C.

Induced investment

D.

None of the above

Answer» b. Real investment

Question:

A movement down the given demand curve shows:

A.

Increase in demand

B.

Decrease in demand

C.

Extension in demand

D.

Contraction in demand

Answer» c. Extension in demand

Question:

Income elasticity of demand for inferior goods is:

A.

Negative

B.

Positive

C.

Zero

D.

Unity

Answer» a. Negative

Question:

The fundamental problem faced by an economy is one of :

A.

Exchange

B.

Decision making by the government

C.

Economic welfare

D.

Scarcity of resources and multiplicity of wants.

Answer» d. Scarcity of resources and multiplicity of wants.

Question:

The U shape of the LAC reflects

A.

law of variable proportions

B.

laws of returns to scale

C.

reserve capacity

D.

none of these

Answer» a. law of variable proportions

Question:

________is a term referring to an intellectual controversy over epistemology, research methodology between Carl Menger, and Gustav von Schmoller.

A.

Methodenstreit

B.

Laissez-faire

C.

Cetris Paribus

D.

Quid Proquo

Answer» a. Methodenstreit

Question:

Which of the following is a cardinalist approach to demand analysis:

A.

Marshallian utility analysis

B.

Indifference Curve Analysis

C.

Revealed Preference Theory

D.

None of these

Answer» a. Marshallian utility analysis