Marginal utility has no place in a ordinal theory because it is
| A. | Not observable |
| B. | Subjective |
| C. | Introspective |
| D. | Additive |
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Option: D Explanation : Click on Discuss to view users comments. |
The degree of price elasticity of demand used for goods is influenced by whether
(1) It has close substitutes
(2) Its output is easily altered
(3) It accounts for a small input
(4) It is a durable use or single use goods
| A. | 1, 3 and 4 only |
| B. | 2 and 3 only |
| C. | 1 and 2 only |
| D. | 2, 3 and 4 only |
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Option: A Explanation : Click on Discuss to view users comments. |
The demand for pepper is likely to have a low price elasticity because it
(1) Involves only a small proportion of consumers expenditure
(2) It is single-use good
(3) Has no close substitutes
(4) Can readily be foregone
| A. | 1 and 3 only |
| B. | 1 and 2 only |
| C. | 2 and 3 only |
| D. | 2 and 4 only |
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Option: C Explanation : Click on Discuss to view users comments. |
Efficient allocation of resources is likely to be achieved under
| A. | Monopolistic competition |
| B. | Monopoly |
| C. | Perfect competition |
| D. | Any market form |
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Option: C Explanation : Click on Discuss to view users comments. |
