The period of time in which the plant capacity can be varied is known as
| A. | The market period |
| B. | The short period |
| C. | The long period |
| D. | None of the above |
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Option: C Explanation : Click on Discuss to view users comments. |
Arc elasticity gives a better measure of point elasticity of a curvilinear demand curve as
| A. | The curvature of the demand curve over the arc becomes less |
| B. | The size of the arc becomes smaller |
| C. | Both of the above |
| D. | Neither of the above |
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Option: C Explanation : Click on Discuss to view users comments. |
"Production" may be defined as an act of
| A. | Creating utility |
| B. | Destroying utility |
| C. | Earning profit |
| D. | Providing services |
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Option: A Explanation : Click on Discuss to view users comments. |
All the points on a budget line represent
| A. | Decreasing total expenditure |
| B. | Increasing total expenditure |
| C. | The same total expenditure |
| D. | None of the above |
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Option: B Explanation : Click on Discuss to view users comments. |
A rise in the price of a commodity will generally call forth a bigger supply and this will be brought about partly by existing firms expanding their output and partly by
| A. | The discovery of new sources of raw materials |
| B. | New firms being attracted into the industry |
| C. | The general expansion of the market |
| D. | Changes in the general level of consumer's incomes |
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Option: B Explanation : Click on Discuss to view users comments. |
