(A) The products are perfectly substitute of each other;
(B) The products are complementary to each other;
(C) Both the products are unrelated ;
(D) Both are luxury items
Tag: Economics Mcqs With Answers
Luxury goods have — — degree of elasticity?
(A) High
(B) Low
(C) Moderate
(D) Completely inelastic
Omlet and cakes have:
(A) Negative cross price elasticity of demand
(B) Positive cross elasticity of demand;
(C) Positive income elasticity of demand
(D) Negative income elasticity of demand
Price elasticity demand of product will be more elastic if it:
(A) Has no substitutes
(B) Has number of substitutes
(C) Is an item of necessity;
(D) Is life saving Product
Marginal cost curve is:
(A) Positively sloped
(B) Negatively sloped
(C) Parallel to X axis
(D) Parallel to Y axis
Long run supply curve of a increasing cost industry is:
(A) Horizontal line overlapping X axis
(B) Upward sloping line
(C) Downward sloping line
(D) Vertical line
Total variable cost curve is explained by:
(A) Law of the diminishing marginal returns
(B) The price of the variable inputs
(C) Production function
(D) All the three
Variable cost is also known as:
(A) Incremental cost
(B) Marginal cost
(C) Differential cost
(D) All the three