17. ________ is the products by which the quantity necessary increases simply right up in order to a particular quantity of when you look at the-come and decreases with a boost in money money beyond which top. (a) Lower Products (b) Regular Products (c) Use Services and products (d) Durable Products Respond to: (a) Lower Goods
18. When items are alternatives, a fall-in the price of one (Ceteris Paribus) leads to on amounts needed of its substitutes. (a) Increase (b) Slide (c) Constant (d) Zero effect. Answer: (b) Slip
19A. Which of the following sets of goods are an example of replacements? (a) escort services in Independence Beverage and you will glucose. (b) Teas and you will coffee. (c) Pen and ink. (d) Clothing and you may pants.
20. Should your price of Pepsi reduces rela-tive towards the price of Coke and you may eight-Upwards, the latest need for: (a) Coke have a tendency to drop-off. (b) 7-Upwards will decrease. (c) Coke and you may seven-Up increase. (d) Coke and you will seven-Up have a tendency to disappear. Answer: (d) Coke and you can eight-Right up commonly fall off.
21. And that of one’s after the try an enthusiastic incor-rect declaration? (a) Whenever goods are substitutes, a fall-in the cost of that (ceteris pari¬bus) contributes to a fall in the quantity necessary of their alternatives. (b) Whenever products was comple-ments, a fall-in the expense of that (other things are equal) will cause the fresh new consult of other to rise. (c) As the earnings of the user develops, the demand for this new commodity increases usually and you may vice versa. (d) When a commodity gets common people like to purchase it and you can for this reason its request develops. Answer: (c) While the money of the consumer grows, this new need for the fresh product expands usually and vice versa.
twenty two. What happens on grain sector in the event the customers are expecting highest grain prices in the future? (a) The newest interest in grain increases. (b) The demand for rice often de-crease. (c) The brand new need for rice would-be unchanged. (d) Not one of one’s above. Answer: (a) The latest interest in rice will increase.
Answer: (b) Tea and java
23. Conspicuous items are also known as: (a) Status products. (b) Snob goods. (c) Veblen products. (d) The above. Answer: (d) Most of the over.
twenty four. An effective hence can not be ate more often than once is known because the ________. (a) Durable a beneficial (b) Non-strong a beneficial (c) Manufacturer good (d) Not one of your significantly more than Address: (b) Non-strong a great
In case your price of chicken increases, the fresh new interest in fish commonly ________
twenty-five. A close relative price is ________. (a) Price expressed regarding money. (b) What you get covered babysitting their cousin. (c) New proportion of one money rates to a different. (d) Equivalent to a financing rate. Answer: (c) The fresh ratio of one money rate to a different.
twenty six. The cost of tomatoes increases and individuals buy tomato puree. Your infer you to definitely tomato puree and you will tomatoes is actually ________. (a) Normal merchandise. (b) Goes with. (c) Alternatives. (d) Lower services and products. Answer: (c) Substitutes.
27. Poultry and you will seafood try replacements. (a) Raise otherwise drop-off nevertheless the de–mand curve to possess poultry cannot alter. (b) Increase while the consult bend getting fish will change rightwards. (c) Perhaps not alter but there are a movement across the request contour for seafood. (d) Disappear as well as the request curve to have seafood often move leftwards. Answer: (b) Improve therefore the request curve getting seafood often shift rightwards.
twenty-eight. Chips and popcorn try sub-stitutes. An increase in the cost of potato chips usually ________ the brand new interest in popcorn together with amount of popcorn usually ________. (a) Increase; boost. (b) Increase; fall off. (c) Decrease; drop-off. (d) Decrease; increase. Answer: (a) Increase; raise.
