Question
1. Which one of the following is the correct ascending order?
A. Scarcity + Opportunity cost &)
Choice
B. Choice > Opportunity cost > Scarcity
C, Scarcity ) Choice a
Opportunity cost
D. None
2. Which one of the following is true about indifference curves?
A. They are always convex to the origin
B. Convexity of IC shows perfect substitution between goods
C. They have negative slope showing that two goods are complementary
D. Higher the indifference curve, the higher utility it represent
E. None
3. Choose the correct statement
A. Shortage pushes price down.
B. Surplus pushes price down.
C. At all prices greater than equilibrium price there is always shortage.
D. None of the above.
4. Which one of the following is true for ICs?
A. They are convex to the origin.
B. They may be linear.
C. They may be L-shape
D, All could be true.
. Work out. Show the stens clegriv Hos
Answer
1. B. Choice > Opportunity cost > Scarcity
2. A. They are always convex to the origin
3. B. Surplus pushes price down.
4. D. All could be true.