Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

96:  

When the price of one commodity in a combination of commodities falls in such a way that the consumer's real income changes but he remains on the same level of satisfaction as before, it is known as

A.

Income effect

B.

Variation effect

C.

Price effect

D.

Compensating variation in income

 
 

Option: D

Explanation :


97:  

Total utility of a commodity can be found by

A.

Multiplying price by number of units

B.

Adding up the marginal utility of all units

C.

Multiplying the number of units by its marginal utility

D.

None of these

 
 

Option: B

Explanation :


98:  

The slope of the Iso-cost line is determined by

A.

Prices of the two factors

B.

Degree of substitutability of two factors

C.

Productivity of the two factors

D.

None of these

 
 

Option: A

Explanation :


99:  

The time period and elasticity of time are related

A.

Directly

B.

Indirectly

C.

In direct proportion

D.

None of the above

 
 

Option: C

Explanation :


100:  

In general, if the average revenue curve is a straight line, the marginal revenue curve will be

A.

U-shaped

B.

A straight line

C.

C-shaped

D.

Bell-shaped

 
 

Option: B

Explanation :




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