551. A movement along the demand curve may be caused by:
A. A change in income
B. A change in the number of buyers
C. A change in advertising
D. A shift in supply
552. Which one of the following tax systems will move in the direction of the reduction of economic disparities?
(A) Flat rate tax
B) Progressive tax
(C) Regressive tax
553. In Keynesian theory equality between saving and investment is brought about by changes in the:
(A) level of income
B) rate of interest
(C) supply of money
554. For the Cobb-Douglas Production Function:
(A) The law of diminishing returns to scale holds
B) The law of constant returns to scale holds
(C) The law of increasing returns to scale holds
555. The assumption which makes the “Indifference Curve” convex to the origin is:
A) A diminishing Marginal Rate of substitution
B) Originality of utility
C) Cardinality of utility
556. One of the following is included in Personal Income but excluded from National Income, which one is that?
(A) Dividends
(B) Wages
C) Interest on Public Debt
557. As wage rises, work hours reduce. It is given by:
A) Substitution effect
B) Income effect
C) Output effect
D) Profit effect
558. Labour is defined as:
A) Mental exertion to create or produce goods and services
B) Physical exertion to create or produce goods and services
C) Both mental and physical exertion to create and produce goods and services
D) None of the above
559. Supply of land is:
A) Variable
B) Elastic
C) Inelastic
D) Perfectly inelastic
560. Land is a __ factor of production.
A) Derived
B) Primary
C) Active
D) Secondary
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