Question:

According to Hicks substitution effect is

A.

the movement to a higher indifference curve

B.

the movement to a lower indifference curve

C.

the movement along an indifference curve

D.

the movement to a decreased consumption

Answer» c. the movement along an indifference curve

Question:

Price discrimination is an essential feature of

A.

Perfect competition

B.

Oligopoly

C.

Duopoly

D.

monopoly

Answer» d. monopoly

Question:

Which of the following statements describes the presence of diminishing returns. Holding at least one factor constant …….

A.

The marginal product of a factor is positive and rising.

B.

The marginal product of a factor is positive but falling.

C.

The marginal product of a factor is falling and negative.

D.

The marginal product of a factor is constant.

Answer» b. The marginal product of a factor is positive but falling.

Question:

The law which states that supply creates its own demand and overproduction is impossible is known as:

A.

The law of supply

B.

Say’s law of market

C.

Law of demand

D.

Law of macro economics

Answer» b. Say’s law of market

Question:

The most important founder of German sociology, __________ , was keenly interested in maintaining the relationship between economics and sociology.

A.

Max Adler

B.

Max Weber

C.

Karl Marx

D.

Joseph W. Eaton

Answer» b. Max Weber

Question:

Perfect price discrimination means that every customer ____________

A.

buys the same amount

B.

pays the same price

C.

contributes the same revenue

D.

pays what she thinks the product is worth

Answer» d. pays what she thinks the product is worth