The numerical measurement of a consumer’spreference is called: Select correct op
ID: 1241798 • Letter: T
Question
The numerical measurement of a consumer’spreference is called:Select correct option:
Satisfaction
Use
Pleasure
Utility
The substitution effect of a price decrease for a good with anormal indifference curve pattern:
Select correct option:
Is always inversely related to the price change.
Measures the change in consumption of the good that is due to theconsumer’s feeling of being richer.
Is measured by the horizontal distance between the original and thenew indifference curves.
Is sufficient information to plot an ordinary demand curve for thecommodity being considered. Demand is elastic when the elasticity of demandis:
Select correct option:
Greater than 0
Greater than 1
Less than 1
Less than 0 If a sales tax on beer leads to reduced tax revenue,this means:
Select correct option:
Elasticity of demand is < 1.
Elasticity of demand is > 1.
Demand is upward-sloping.
Demand is perfectly inelastic.
When the price of petrol rises 10%, the quantity of petrolpurchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic
A Demand Curve is price inelastic when:
Select correct option:
Changes in demand are proportionately smaller than those inprice
Changes in demand are proportionately greater than those inprice
Changes in demand are equal than those in price
None of the given options.
The effect of a change in the price of a good or service on thequantities consumed when the consumer remains indifferent betweenthe original and new combination of goods consumed is the:
Select correct option:
Substitution effect
Real income effect
Income effect
Price effect
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left
The short run, as economists use the phrase, is characterisedby:
Select correct option:
All inputs being variable.
At least one fixed factor of production and firms neither leavingnor entering the industry.
No variable inputs - that is, all of the factors of production arefixed.
A period where the law of diminishing returns does not hold.
When an industry's raw material costs increase, other thingsremaining the same:
Select correct option:
The supply curve shifts to the left.
The supply curve shifts to the right.
Output increases regardless of the market price and the supplycurve shifts upward.
Output decreases and the market price also decrease.
The law of diminishing returns assumes:
Select correct option:
There are no fixed factors of production.
There are no variable factors of production.
Utility is maximised when marginal product falls.
Some factors of production are fixed.
Price floor results in:
Select correct option:
Equilibrium
Excess demand
Excess supply
All of the given options
If a decrease in price increases total revenue:
Select correct option:
Demand is elastic
Demand is inelastic
Supply is elastic
Supply is inelastic
If the income elasticity of demand is 1/2, the good is:
Select correct option:
A luxury.
A normal good (but not a luxury).
An inferior good.
A Giffen good.
Other things equal, expected income can be used as a direct measureof well-being:
Select correct option:
No matter what a person's preference to risk.
If and only if individuals are not risk-loving.
If and only if individuals are risk averse.
If and only if individuals are risk neutral.
When drawing demand and supply curves, economists are assuming thatthe primary influence on production and purchasing decisionsis:
Select correct option:
Price
Cost of production
The overall state of the economy
Consumer incomes The numerical measurement of a consumer’spreference is called:
Select correct option:
Satisfaction
Use
Pleasure
Utility
The substitution effect of a price decrease for a good with anormal indifference curve pattern:
Select correct option:
Is always inversely related to the price change.
Measures the change in consumption of the good that is due to theconsumer’s feeling of being richer.
Is measured by the horizontal distance between the original and thenew indifference curves.
Is sufficient information to plot an ordinary demand curve for thecommodity being considered. Demand is elastic when the elasticity of demandis:
Select correct option:
Greater than 0
Greater than 1
Less than 1
Less than 0 If a sales tax on beer leads to reduced tax revenue,this means:
Select correct option:
Elasticity of demand is < 1.
Elasticity of demand is > 1.
Demand is upward-sloping.
Demand is perfectly inelastic.
When the price of petrol rises 10%, the quantity of petrolpurchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic
A Demand Curve is price inelastic when:
Select correct option:
Changes in demand are proportionately smaller than those inprice
Changes in demand are proportionately greater than those inprice
Changes in demand are equal than those in price
None of the given options.
The effect of a change in the price of a good or service on thequantities consumed when the consumer remains indifferent betweenthe original and new combination of goods consumed is the:
Select correct option:
Substitution effect
Real income effect
Income effect
Price effect
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left
The short run, as economists use the phrase, is characterisedby:
Select correct option:
All inputs being variable.
At least one fixed factor of production and firms neither leavingnor entering the industry.
No variable inputs - that is, all of the factors of production arefixed.
A period where the law of diminishing returns does not hold.
When an industry's raw material costs increase, other thingsremaining the same:
Select correct option:
The supply curve shifts to the left.
The supply curve shifts to the right.
Output increases regardless of the market price and the supplycurve shifts upward.
Output decreases and the market price also decrease.
The law of diminishing returns assumes:
Select correct option:
There are no fixed factors of production.
There are no variable factors of production.
Utility is maximised when marginal product falls.
Some factors of production are fixed.
Price floor results in:
Select correct option:
Equilibrium
Excess demand
Excess supply
All of the given options
If a decrease in price increases total revenue:
Select correct option:
Demand is elastic
Demand is inelastic
Supply is elastic
Supply is inelastic
If the income elasticity of demand is 1/2, the good is:
Select correct option:
A luxury.
A normal good (but not a luxury).
An inferior good.
A Giffen good.
Other things equal, expected income can be used as a direct measureof well-being:
Select correct option:
No matter what a person's preference to risk.
If and only if individuals are not risk-loving.
If and only if individuals are risk averse.
If and only if individuals are risk neutral.
When drawing demand and supply curves, economists are assuming thatthe primary influence on production and purchasing decisionsis:
Select correct option:
Price
Cost of production
The overall state of the economy
Consumer incomes