As per the indifference curve and price line, a consumer will not be in equilibrium when
A. The Ratio ratio of marginal utilities of the two goods is equal to the ratio of their respective goods are equal
B. The Ratio ratio of the marginal rate of utilities and prices of the respective goods are equal
C. The marginal rate of substitution is equal to the ratio of the prices of the two goods
D. The marginal rate of substitution is decreasing
Answer: Option A
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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