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Generate QuizEconomics – Easy Level – GK Questions
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Monopoly has close substitutes.
- True
- False
Answer: False
Monopoly is characterized by having no close substitutes.
Perfect competition has?
- Differentiated products
- Homogeneous products
- Single seller
- Barriers
Answer: Homogeneous products
All firms produce identical/homogeneous products.
Necessities have highly elastic demand.
- True
- False
Answer: False
Necessities have highly inelastic demand.
Price elasticity > 1 means demand is?
- Inelastic
- Elastic
- Unitary
- Perfectly inelastic
Answer: Elastic
Ed > 1 indicates relatively elastic demand.
Indifference curves intersect.
- True
- False
Answer: False
ICs never intersect due to the property of transitivity.
Cardinal utility is measurable.
- True
- False
Answer: True
Cardinal approach assigns exact numerical values to utility.
Rightward shift in demand curve means ___ in demand.
- technological
- 66
- balance (or sum to zero)
- increase
Answer: increase
Rightward shift indicates higher demand at the same price.
Movement along demand curve is due to change in price.
- True
- False
Answer: True
Shifts are due to non-price factors like income.
Veblen goods are also known as ___ goods.
- snob
- 1965
- Net Factor Income from Abroad (NFIA)
- Ways and Means
Answer: snob
Snob/prestige goods violate the basic law of demand.
Demand curve slopes upward.
- True
- False
Answer: False
Demand curve slopes downward from left to right.
Law of demand shows?
- Inverse price-demand
- Direct price-demand
- Income-demand
- None
Answer: Inverse price-demand
Demand falls as price rises, ceteris paribus.