Supply & Demand-Consumer Surplus & Production Surplus [AP (Advanced Placement) Microeconomics]: Questions 1 - 3 of 16

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Question 1

Consumer Surplus & Production Surplus

Appeared in Year: 2017 (NET)

Question

MCQ▾

In explaining the price effect, which of the following is/are constant? (November Paper-III)

(a) Real Income

(b) Money Income

(c) Price ratio

Choose the correct answer from the code given below:

Choices

Choice (5)Response

a.

Only (b)

b.

Both (b) and (c)

c.

Only (a)

d.

Both (a) and (c)

e.

None of the above

Question 2

Consumer Surplus & Production Surplus

Appeared in Year: 2017 (NET)

Question

MCQ▾

A good is called a ‘Giffen good’ when the income effect is: (November Paper-III)

Choices

Choice (5)Response

a.

Equal to substitution effect

b.

Less than the substitution effect

c.

Negative and is greater than the substitution effect

d.

Positive and is greater than the substitution effect

e.

Question does not provide sufficient data or is vague

Question 3

Consumer Surplus & Production Surplus

Appeared in Year: 2017 (NET)

Question

MCQ▾

Permanent income hypothesis assumes positive correlation between which of the following pairs of variables? (November Paper-III)

Choices

Choice (5)Response

a.

Transitory income and transitory consumption

b.

Permanent income and permanent consumption

c.

Permanent income and transitory consumption

d.

Permanent income and transitory income

e.

All of the above

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