Answer: Option B. -> giffen good
Answer: (b)
Negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has a positive price elasticity of demand.
It is a good which people paradoxically consume more of as the price rises, violating the law of demand.
When the price goes up, the quantity demanded also goes up.

Answer: Option D. -> one
Answer: (d)Monopoly refers to a market in which there is only one supplier and no other firms are able to enter.

Answer: Option C. -> any factor
Answer: (c)
The modern theory of rent does not confine itself to the reward of the only land as a factor of production as was the case in the classical Ricardian theory of rent.
Rent in the modern sense can arise in respect of any other factor of production, i.e., labour, capital and entrepreneurship.

Answer: Option B. -> Marginal Utility = Price
Answer: (b)
As per the law of diminishing marginal utility, the utility of each successive unit goes on diminishing as more and more units of a commodity are consumed.
A rational consumer will consume the commodity up to a point where the marginal utility of the final unit of the commodity is equal to the marginal utility of money (in terms of price) paid for it. In this way, the consumer will get maximum satisfaction and will be in equilibrium.

Answer: Option C. -> Purchasing power
Answer: (c)
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon a number of factors called Determinants.
The demand function can be symbolically expressed as:
QdN = f (PN, PR, I, T, E, O)
Where QdN = Quantity demanded the commodity;
PN = Price of the commodity;
PR = Price of the related commodity;
I = Income of consumers;
T = Taste & Preferences of the consumers;
E = Expectations about the future prices; and O= other factors.

Answer: Option C. -> Horizontal
Answer: (c)
The Total Fixed Cost Curve is a curve that graphically represents the relation between the total fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced.
This curve is constructed to capture the relation between total fixed cost and the level of output, holding other variables, like technology and resource prices, constant.
Because total fixed costs are in fact, fixed, the total fixed cost curve is, in fact, a horizontal line.

Answer: Option B. -> satisfy human wants
Answer: (b)
According to Adam Smith, consumption is the sole end and purpose of all production. The goal of production is the satisfaction of human desire.
All the processes, by which human labour creates goods and services, bring them to the ultimate consumer.

Answer: Option A. -> The purchasing power of his earnings
Answer: (a)
A real wage rate is a nominal wage rate divided by the price of a good and is a transparent measure of how much of the good an hour of work buys. It provides an important indicator of the living standards of workers, and also of the productivity of workers.
While differences in earnings or incomes may be misleading indicators of worker welfare, real wage rates are comparable across time and location.
Nominal wages are not sufficient to tell us if workers gain since, even if wages rise, the price of one of the goods also rises when moving to free trade. The real wage represents the purchasing power of wages— that is, the quantity of goods the wages will purchase.

Answer: Option A. -> purchasing power of money
Answer: (a)
The term real wages refers to wages that have been adjusted for inflation. This term is used in contrast to nominal wages or unadjusted wages.
Real wages provide a clearer representation of an individual’s wages. The real purchasing power of income or money is the key determinant of the real wage. It is an indication of an individual’s actual purchasing power.
Real wages are a useful economic measure, as opposed to nominal wages, which simply show the monetary value of wages in that year. However, real wages do not take into account other compensation like benefits or old-age pensions.

Answer: Option C. -> cost of producing an extra unit of output
Answer: (c)
Marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
That is, it is the cost of producing one more unit of a good. In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit.