Match the following.
| List-I (Economist) | List-II (Statement) |
| a. Robinson | 1. The elasticity of demand at any price or at any output is the proportional change of amount purchased in response to a small change in price divided by the proportional change in price |
| b. Boulding | 2. The elasticity of demand may be defined as the percentage change in quantity demanded, which would result from 1% change in price |
| c. Cairn Cross | 3. The elasticity of demand for a commodity is the rate at which the quantity bought changes as the price changes |
| d. Marshall | 4. The elasticity for demand in a market is large or small according to how the amount of demand increases for a given fall in price and diminishes more or less for a given rise in price |
A. a-1, b-3, c-4, d-2
B. a-1, b-2, c-4, d-3
C. a-1, b-3, c-2, d-4
D. a-1, b-2, c-3, d-4
Answer: Option D
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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