Lakshya Education MCQs

Question: If income elasticity for a good is 2, then it is a
Options:
A.Necessity item
B.Inferior good
C.Luxury item
D.Comfortable item
Answer: Option C

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More Questions on This Topic :

Question 1. Lesser production of ____ would lead to lesser production in future.
  1.    Public goods
  2.    Consumer goods
  3.    Capital goods
  4.    Agricultural goods
Answer: Option C
Question 2. In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve
  1.    Marginal revenue curve
  2.    Marginal cost curve
  3.    Average cost curve
  4.    None of the above
Answer: Option B
Question 3. Suppose the total cost of producing commodity X is Rs.125000. Out of this cost, implicit cost is Rs.35000 and normal profit is Rs.25000. What will be the explicit cost of commodity X?
  1.    Rs.90000
  2.    Rs.65000
  3.    Rs.60000
  4.    Rs.100000
Answer: Option B
Question 4. If the price of good A increases relative to the price of substitutes B and C, the demand for
  1.    B will increase
  2.    C will increase
  3.    Both B and C will increase
  4.    B and C will decrease
Answer: Option C
Question 5. A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?
  1.    Rs.60
  2.    Rs.30
  3.    Rs.40
  4.    Rs.20
Answer: Option B
Question 6. All of the following are determinants of demand except
  1.    Tastes and preferences
  2.    Quantity supplied
  3.    Income
  4.    Price of related goods
Answer: Option B

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