Economics MCQS

531. An isoquant is convex to the origin because of:
A) Law of diminishing returns
B) Diminishing marginal rate of substitution between factors
C) Law of increasing returns

532. The relationship between price and quantity bought at that price is called:
A) Demand curve
B) Supply curve
C) Law of one price
D) Equilibrium position

533. Special Audit of a registered person may be conducted under section:
(A) 31
(B) 32
C) 32A
(D) 28

534. Creation of economic utility can be:
A) Form utility
B) Time utility
C) Place utility
D) All of the above

535. Supply function is a functional relationship between the quantity supplied of a commodity and?
A) Factors affecting supply
B) Price of the commodity
C) State of technology
D) Government policy

536. Stock of a commodity is the:
A) Total quantity that is available in a market at a certain time
B) Total quantity that is available with wholesalers at a certain time
C) Total quantity that is available with stockists at a certain time
D) Total quantity that is available at a certain price

537. Which theory assumes the ordinality of utility?
A) Indifference curve theory
B) Marginal utility theory
C) None of the above
D) Both A & B

538. Higher Indifference curve means:
A) Consumer has more income
B) Price of goods has reduced
C) Higher utility level
D) All of the above

539. Diminishing MRS means:
A) Consumer wants to give up a lesser unit of Y in exchange for good X
B) Consumer wants to give up more units of Y in exchange for good X
C) Consumer wants to give up the same units of Y in exchange for good X
D) None of the above

540. MRS is defined as:
A) The amount of good Y given up in exchange for good X such that total utility is constant
B) The amount of good X given up in exchange for good Y such that total utility is constant
C) The amount of good Y given up in exchange for good X such that total utility rises
D) The amount of good Y given up in exchange for good X