Question:

Functional relationship between saving and disposable income is:

A.

Saving function

B.

Income function

C.

Consumption function

D.

Investment function

Answer» a. Saving function

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

Question:

Under perfectly competitive market an individual seller is a

A.

Price taker

B.

Price maker

C.

Individual seller can influence the price

D.

None of the above

Answer» a. Price taker

Question:

When the perfectly competitive firm and industry are both in longrun equilibrium

A.

P = MR = SMC = LMC

B.

P = MR = SAC = LAC

C.

P = MR =Lowest point on the LAC curve

D.

All of the above

Answer» d. All of the above

Question:

Marginal revenue of a firm is constant throughout under:

A.

Perfect competition

B.

Monopolistic competition

C.

Oligopoly

D.

All the above

Answer» a. Perfect competition

Question:

The want satisfying power of a commodity:

A.

Satisfaction

B.

Utility

C.

Value

D.

Marginal Utility

Answer» b. Utility