Question:

Father of Economics:

A.

Marshall

B.

David Ricardo

C.

Adam Smith

D.

J.M. Keynes

Answer» c. Adam Smith

Question:

If negative income effect is greater than positive substitution effect : priceeffect will be

A.

zero

B.

negative

C.

positive

D.

positive and greater than one

Answer» b. negative

Question:

Inferior goods are the goods with

A.

falling income effect

B.

rising income effect

C.

negative income effect

D.

positive marshallian effects

Answer» c. negative income effect

Question:

Income consumption curve of an inferior commodity is

A.

positively sloped

B.

backward bending

C.

downward slopping straight line

D.

showing constant income effect

Answer» b. backward bending

Question:

Which of the following is called gossans first law

A.

law of substitution

B.

law of equi marginal utility

C.

law of diminishing marginal utility

D.

none of the above

Answer» c. law of diminishing marginal utility

Question:

————-is associated with the theory of multiplier:

A.

Adam Smith

B.

Malthus

C.

Malthus

D.

Keynes

Answer» d. Keynes

Question:

The concept of utility was introduced by

A.

marshall

B.

hicks and allen

C.

geremy bentham

D.

gossen

Answer» c. geremy bentham

Question:

At the point of tangency of an indifference curve with a budget line:

A.

MRSxy =Px/Py

B.

MRSxy>Px/PY

C.

MRSxy<Px/PY

D.

MRSxy≥Px/PY

Answer» a. MRSxy =Px/Py

Question:

Mannheim defines ________as the sum of those methods by which a society tries to influence human behavior to maintain a given order.

A.

Social control

B.

Constitution

C.

Policing

D.

Democracy

Answer» a. Social control

Question:

In the case of normal goods, the quantity demanded varies inversely with:

A.

Price of good

B.

Income of the consumer

C.

Fashion of the good

D.

Savings

Answer» a. Price of good