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» Micro Economics 1 solved MCQs

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:

Question:

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:

A.

2

B.

2.5

C.

3.3

D.

5

Answer» a. 2

Note: The above multiple-choice question is for all general and Competitive Exams in India

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is: Read More »

» Micro Economics 1 solved MCQs

Change in utility resulting from one unit change in consumption is called:

Question:

Change in utility resulting from one unit change in consumption is called:

A.

Total Utility

B.

Extra Utility

C.

Marginal Utility

D.

Average Utility

Answer» c. Marginal Utility

Note: The above multiple-choice question is for all general and Competitive Exams in India

Change in utility resulting from one unit change in consumption is called: Read More »

» Micro Economics 1 solved MCQs

Who argued that national income is simply equal to “net product of agriculture”?

Question:

Who argued that national income is simply equal to “net product of agriculture”?

A.

Mercantilists

B.

Physiocrats

C.

Classical Economists

D.

Neo Classical Economists

Answer» b. Physiocrats

Note: The above multiple-choice question is for all general and Competitive Exams in India

Who argued that national income is simply equal to “net product of agriculture”? Read More »

» Micro Economics 1 solved MCQs

A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity:

Question:

A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity:

A.

Increases

B.

Decreases

C.

Remains unchanged

D.

None of the above

Answer» c. Remains unchanged

Note: The above multiple-choice question is for all general and Competitive Exams in India

A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity: Read More »

» Micro Economics 1 solved MCQs

If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is

Question:

If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is

A.

Greater than One

B.

Equal to one

C.

Smaller than one

D.

Zero

Answer» d. Zero

Note: The above multiple-choice question is for all general and Competitive Exams in India

If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is Read More »

» Micro Economics 1 solved MCQs