Multiple choice questions:
1. Demand for
goods decreases with increase in income.
(a) Substitute
(b) Inferior
(c) Complementary
(d) Both (a) and (b)
2. Real income refers to
(a) Purchasing power of money income
(b) Actual demands of goods
(c) Net income a person earns
(d) Legal income of a person
3. Individual supply curve is & market supply curve is
(a) Positive, Negative
(b) Negative, Negative
(c) Negative, Positive
(d) Positive, Positive
4. According to
demand & supply are called invisible hands of market.
(a) Robbins
(b) paul
(c) Marshall
(d) smith
Answers
Answer:
MCQS
1. C option
2. A option
3. A option
4. D Smith
Explanation:
1.In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases), unlike normal goods, for which the opposite is observed. Normal goods are those goods for which the demand rises as consumer income rises.
2.Real income is how much money an individual or entity makes after accounting for inflation. It is sometimes called real wage when referring to an individual's income. Individuals often closely track their nominal vs. real income to have the best understanding of their purchasing power.
3.A supply curve is the graphical representation of the supplier's positive correlation between the price and quantity of a good or service. As a result, the supply curve is upward sloping. Market supply is the summation of the individual supply curves within a specific market.
4.The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. ... The seller end up getting the price and the buyer will get better goods at the desired price.
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