(A) that it cannot solve problems involving more than two goods
(B) its cardinal measurement of utility
(C) its inability to explain the diamond-water paradox
(D) all of the above
Category: Economics Mcqs
Users will find here Economics Mcqs for NTS, CSS, PMS, PPSC, FPSC, KPPSC, AJKPSC, BPSC, PTS, SPSC, Lecturer and all other types of Competitive Exams and Interviews. Economics students can prepare their Economics Portion for all test from here.
Indifference curves cannot?
(A) be L shaped
(B) be straight lines
(C) intersect
(D) all of the above
If the income and substitution effects of a price increase work in the same direction the good whose price has changed is a?
(A) inferior good.
(B) Giffen good.
(C) normal good.
(D) superior good.
The curve that is traced out when we keep indifference curves and the total effective budget constant and only change the relative price of good X (i.e. slope of budget line) is:
(A) the Engel curve.
(B) the demand curve for X.
(C) the substitution curve.
(D) the price-consumption curve for X.
“Moral hazard” and “adverse selection” are problems related to asymmetric information, that arise?
(A) in ex-ante and ex-post contexts, respectively
(B) in ex-post and ex-ante contexts, respectively
(C) in ex-ante contexts
(D) in ex-post contexts
The curve that is traced out when we keep indifference curves constant and move the budget line parallel to its original position is?
(A) the income-consumption curve.
(B) the Engel curve.
(C) the demand curve.
(D) the income-demand curve.
If a household’s money income is doubled,?
(A) the budget constraint will shift in and parallel to the old one.
(B) the budget constraint is not affected.
(C) the budget constraint will swivel outward at the Y-intercept.
(D) the budget constraint will shift out parallel to the old one.
The limits imposed on household choices by income, wealth, and product prices are captured by the?
(A) budget constraint.
(B) choice set.
(C) assumption of perfect knowledge.
(D) preference set.