Imagine a graph showing production possibilities. What does an outward shift of the production possibilities curve indicate?
A. | Overproduction |
B. | Inflation |
C. | Economic growth |
D. | Overfull employment |
Option: C Explanation : Click on Discuss to view users comments. |
A stable equilibrium position is one in which
A. | There are only two forces influencing equilibrium |
B. | There are never any departures from the equilibrium position |
C. | Any departure from the equilibrium position calls into play forces which tend to restore that position |
D. | There are endless oscillations |
Option: C Explanation : Click on Discuss to view users comments. |
Law of diminishing marginal utility states
A. | Utility always diminishes whether something is consumed or not |
B. | Total utility diminishes with the consumption of every additional unit |
C. | Utility first increases and after that diminishes at every point |
D. | The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in stock that he already has. |
Option: D Explanation : Click on Discuss to view users comments. |
Under perfect market and in case of decreasing marginal cost the firm's equilibrium with respect to level of production
A. | Cannot be achieved |
B. | Can be achieved after a high level of output |
C. | Can be achieved after a small level of output |
D. | Will result in run-away inflation |
Option: B Explanation : Click on Discuss to view users comments. |