Which of the following is a cause of an economic problem?
A. Scarcity of resources
B. Alternative uses
C. Unlimited wants
D. All of the above
Answer: Option D
Solution(By Examveda Team)
Scarcity of resources, Alternative uses and Unlimited wants are the cause of an economic problem. Factors like production costs and labor affect the cost of scarce items. If the unlimited wants and needs of a particular good can be met by resources, then it is not considered scarce. This would require the resources to be unlimited as well for it to meet unlimited demand.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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