AP (Advanced Placement) Microeconomics: Questions 230 - 233 of 398

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Question 230

Question

MCQ▾

For downward movement along the Iso-quant, MRTS of Labour per unit of capital (MRTSL, K) is given by

Choices

Choice (5)Response

a.

b.

c.

d.

e.

Question does not provide sufficient data or is vague

Question 231

Question

MCQ▾

Opportunity cost version of comparative cost advantage doctrine was introduced by

Choices

Choice (5)Response

a.

J. M. Keynes

b.

Kindle Berger

c.

Haberler

d.

Karl Marx

e.

All of the above

Question 232

Question

MCQ▾

Match the mathematical representation of increasing returns to sale

Choices

Choice (5)Response

a.

b.

c.

d.

None of the above

e.

Question does not provide sufficient data or is vague

Question 233

Question

MCQ▾

How does Slutsky substitution effect differ from Hicks substitution effect (SE) ?

i. The original bundle will no longer be affordable but the consumer will move along the same indifference curve in the Hicks SE

ii. Slutsky SE holds purchasing power constant while Hicks SE holds utility constant

iii. In the Hicks SE, consumer moves to a higher IC while the new budget line passes through the original bundle

iv. Slutsky demand curve is also called compensated demand curve as the consumer is “compensated” for changes in relative price by keeping purchasing power unchanged

Choices

Choice (5)Response

a.

i and iv

b.

iii and ii

c.

iii and iv

d.

i and ii

e.

Question does not provide sufficient data or is vague

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