Question : How many enormous curves can intersect the budget line:
Option 1: One
Option 2: Two
Option 3: Three
Option 4: None of the above.
Correct Answer: One
Solution : The consumer achieves equilibrium at a point on the highest possible indifference curve that fits the consumer's budget given the prices of both commodities. Only when the budget line is tangent to the indifference curve is such a point possible. Therefore, only one indifference curve can touch the budget line.
Question : Marginal rate of exchange also denotes:
Option 1: Slope of Demand Curve
Option 2: Slope of budget line
Option 3: Slope of IC Curve
Option 4: None of the above
Question : Directions: The position of how many letters will remain unchanged if each letter in the word HEARDVG is arranged in alphabetical order.
Option 1: Three
Option 2: One
Option 3: Two
Option 4: None
Question : A government budget that is balanced over the long term is called:
Option 1: A stable budget
Option 2: A dynamic budget
Option 3: A cyclically balanced budget
Question : The ideal liquid ratio is
Option 1: 2:1
Option 2: 1:1
Option 3: 3:1
Question : A budget that is in balance is:
Option 1: Expansionary
Option 2: Contractionary
Option 3: Neutral
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile