Question
Which of the following is true for a normal good when there is a decrease in consumer income?
More Microeconomics Section Tests Questions
- A "Homothetic" production function is a monotonic transformation of a homogeneous function. For such functions, the Expansion Path is always:
- The price elasticity of demand is 2. If the price of the product is 20, what is the Marginal Revenue (MR)?
- Given the Total Cost function TC = 100 + 10Q + 2Q squared, what is the Marginal Cost (MC) when output Q is 5?
- Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sittin...
- Consider a Keynesian Cross Model with following features, Consumption Function: C= C0 + b (Y – T) Tax Function: T = T0 + tY Income Id...
- If the Marginal Product of Labor (MPL) is 20 and the MRTS of Labor for Capital is 4, what is the Marginal Product of Capital (MPK)?
- A firm’s production function is Q = 10 * L to the power of 0.5 * K to the power of 0.5. If the firm uses 16 units of Labor and 25 units of Capital, what is...
- The "Cessation of Production" or the Long-run Exit Condition for a firm occurs when:
- According to the Shephard’s Lemma in cost theory, the partial derivative of the cost function with respect to an input price (e.g., wage) gives:
- A firm produces 100 units at an average variable cost of 5 and an average total cost of 12. What is the firm's Total Fixed Cost?
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt