17. ________ will be commodities which extent demanded goes up merely upwards in order to a certain quantity of in the-been and you may minimizes that have a rise in currency earnings beyond that it level. (a) Second-rate Items (b) Typical Goods (c) Usage Goods (d) Strong Goods Answer: (a) Lower Items
18. When items are substitutes, a belong the price of one (Ceteris Paribus) leads to regarding numbers required of the substitutes. (a) Rise (b) Slide (c) Ongoing (d) No feeling. Answer: (b) Slip
19A. And that of after the sets of products is a good example of replacements? (a) Beverage and you may sugar. (b) Teas and you will coffee. (c) Pen and ink. (d) Clothing and you may shorts.
20. If the cost of Pepsi decrease rela-tive into price of Coke and 7-Upwards, the new need for: (a) Coke often drop off. (b) 7-Right up commonly decrease. (c) Coke and seven-Upwards will increase. (d) Coke and you will eight-Upwards tend to decrease. Answer: (d) Coke and you can 7-Upwards usually drop-off.
21. Hence of one’s following the try an enthusiastic incor-rect statement? (a) Whenever goods are substitutes, a belong the price of you to definitely (ceteris pari¬bus) causes a fall in the quantity recommended of their alternatives. (b) When products are comple-ments, a fall in the expense of you to definitely (other things being equivalent) may cause this new demand of your other to rise. (c) Because income of your own user develops, the newest interest in the fresh new commodity increases always and you may vice versa. (d) When an item becomes fashionable individuals prefer to order it and therefore the demand expands. Answer: (c) While the earnings of your own consumer expands, the interest in brand new commodity grows constantly and you may the other way around.
22. What will happen about rice market in the event the buyers expect high grain costs in the future? (a) The newest need for grain increases. (b) The fresh need for rice often de–crease. (c) New need for rice was unchanged. (d) Not one of your own significantly more than. Answer: (a) The fresh interest in grain increases.
Answer: (b) Teas and you may coffee
23. Obvious products are known as: (a) Stature items. (b) Snob escort services in High Point products. (c) Veblen services and products. (d) The above. Answer: (d) All significantly more than.
twenty-four. An excellent hence can’t be consumed more often than once is well known as ________. (a) Sturdy a good (b) Non-sturdy a good (c) Manufacturer a good (d) Not one of one’s over Address: (b) Non-durable good
If the price of chicken increases, brand new need for seafood commonly ________
twenty five. A close relative price is ________. (a) Rates conveyed with respect to money. (b) What you get paid for babysitting your relative. (c) The latest proportion of one money speed to a different. (d) Comparable to a loans rates. Answer: (c) This new proportion of just one currency speed to another.
twenty-six. The expense of tomatoes expands and individuals buy tomato puree. Your infer one tomato puree and tomatoes try ________. (a) Normal merchandise. (b) Matches. (c) Substitutes. (d) Lower products. Answer: (c) Substitutes.
twenty seven. Poultry and you can fish are replacements. (a) Increase or drop off although de-mand curve to have poultry does not changes. (b) Increase therefore the request curve to possess seafood tend to move rightwards. (c) Maybe not change but there’ll be a motion over the demand curve to possess fish. (d) Fall off additionally the demand bend to possess seafood usually change leftwards. Answer: (b) Boost and also the consult bend getting seafood tend to move rightwards.
28. Potato chips and you may popcorn was sandwich-stitutes. A rise in the expense of chips usually ________ the latest interest in popcorn in addition to amount of popcorn often ________. (a) Increase; increase. (b) Increase; disappear. (c) Decrease; drop-off. (d) Decrease; raise. Answer: (a) Increase; boost.