Questions

Q:

Which one of the following is not an assumption in the law of demand?

A) There are no changes in the taste and preferences of consumers B) Income of consumers remains constant
C) Consumers are affected by demonstration effect D) There are no changes in the price of substitute goods.
 
Answer & Explanation Answer: C) Consumers are affected by demonstration effect

Explanation:

There are certain assumptions underlying the law of demand, which are as follows:

i. Assumes that the consumer’s income remains same

ii. Assumes that the preferences of consumer remain same.

iii. Considers that the fashion does not show any changes, because if fashion changes, then people would not purchase the products that are out of fashion.

iv. Assumes that there would be no change in the age structure, size, and sex ratio of population. This is because if population size increases, then the number of buyers increases, which, in turn, affect the demand for a product directly.

v. Restricts the innovation and new varieties of products in the market, which can affect the demand for the existing product.

vi. Restricts changes in the distribution of income.

vii. Avoids any type of change fiscal policies of the government of a nation, which reduces the effect of taxation on the demand of product.

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Q:

The relation between the consumer’s optimal choice of the quantity of a good and its price is very important and this relation is called the ________ function.

A) Price B) Substitution
C) Supply D) Demand
 
Answer & Explanation Answer: D) Demand

Explanation:
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Q:

The ________ curve represents the demand of all consumers in the market taken together at different levels of the price of the good.

A) monotonic B) indifferent
C) market demand D) diminishing
 
Answer & Explanation Answer: C) market demand

Explanation:
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Q:

Full employment is the level at which there is _____.

A) no frictional unemployment B) no cyclical unemployment
C) no structural unemployment D) no unemployment
 
Answer & Explanation Answer: B) no cyclical unemployment

Explanation:
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Q:

A minimum wage _____.

A) is the price floor below which workers may not sell their labor B) is set at a price below the equilibrium wage
C) creates a price ceiling below which the wage cannot legally go D) decreases unemployment
 
Answer & Explanation Answer: A) is the price floor below which workers may not sell their labor

Explanation:
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Q:

Which of following is true if the Government monetized part of its deficit?

A) Money supply in the economy will increase. B) Interest rate will increase.
C) Government revenue will decrease. D) Government expenditure will increase.
 
Answer & Explanation Answer: A) Money supply in the economy will increase.

Explanation:
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Q:

Atomic mass of Sulphur is 32 u. The number of moles in 16 grams of Sulphur is:

A) 0.5 moles of Sulphur B) 0.25 moles of Sulphur
C) 0.75 moles of Sulphur D) 1 mole of Sulphur
 
Answer & Explanation Answer: A) 0.5 moles of Sulphur

Explanation:
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Q:

Which leukocyte is responsible for antibody production?

A) Monocyte B) T-Cells
C) B Lymphocyte D) Basophil
 
Answer & Explanation Answer: C) B Lymphocyte

Explanation:

Leukocyte, commonly known as a white blood cell (WBC), is a major component in protecting the body against invading microorganisms and body cells with mutated DNA, and they clean up debris. 

B Lymphocyte also called as B-Cells or plasma cells produces the antibodies or immunoglobulins that bind to specific foreign or abnormal components of plasma membranes. This is also referred to as humoral (body fluid) immunity.

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