471. Veblen good is:
A) Consumed by a very high-income group
B) A good of status
C) Like diamonds
D) All of the above
472. Giffen good is:
A) One with high negative income elasticity of demand
B) An inferior good
C) Consumed by low-paid workers
D) All of the above
473. Substitution effect states that as the price of a good falls, demand rises because there is a rise in?
A) Real income
B) Money income
C) Relative price of other goods
D) Marginal utility
474. Income effect states that as the price of a good falls, demand rises because there is a rise in?
A) Real income
B) Money income
C) Relative price of other goods
D) Marginal utility
475. As a consumer has more and more units of a good, its marginal utility to him?
A) Declines
B) Rises
C) Is zero
D) Is maximum
476. When the demand curve is downward sloping, its slope is?
A) Negative
B) Positive
C) Constant
D) Zero
477. Modern theory of international trade is based on the views of:
A) Robins and Ricardo
B) Adam Smith and Marshall
C) Heckscher and Ohlin
D) None of these
478. Devaluation of currency can help to increase exports if the elasticity of demand for exportable items in other countries is:
A) Less than 1
B) Greater than 1
C) Equal to 1
D) Zero
479. Which of the following is correct?
A) Consumption is a function of income
B) Consumption is a function of saving
C) Pay is a component of utilization
D) Income is a function of saving
480. The capital-output ratio of the commodity measures:
A) Its per-unit cost of production
B) How much capital contributed per unit of result
C) The ratio of the output quantity to capital depreciation
D) The proportion of output to working capital used
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