10.

11;

12.

13.
14.
15.
16.
17.

2 D 74418

If an increase in the price of one good leads to an increase in the quantity demanded of another
good, then, these two goods are :

(a) Complementary goods. (b) Substitute goods.
(c) Giffen goods. (d) Merit Goods.
If the income elasticity of a good is greater than zero, then the good 15 :
(a) Normal good. (b) Inferior good.
(c) complimentary god. (d) Substitute good.

If consumers spend Rupees 15 million a month on Cell phone Recharge Coupons, regardless of
whether the price they pay goes up or down, then, the price elasticity of demand for these Recharge
Coupons is :

(a) 0. (b) 1.
(© ೫. | (व) 15.
A normal good can be defined as one which consumers purchase more of as :
(a) prices fall. (b) prices rise.
(c) incomes fall. ⋅ (d) incomes increase.

The indifference curve of perfect substitute goods is :
(a) Straight line. (b) Right angles.
(€) Concave. (d) convex to the origin.

The Marginal Rate of Technical Substitution between perfectly substitutable inputs is :

(a) Negative. (b) Positive.
(c) Constant. (d) Indeterminate.
In Revealed Preference Theory, the consumer's choice is :
(a) Weakly ordered. (b) Strongly ordered.
(c) indifferent. (d) All of these.
(12 x 36 = 6 marks)
Part 8

Very short answer type questions.
Answer any ten questions.

What is a production function ?

What is meant by isoquant ?

Write a note on Returns to Scale.

What do you mean by consumer surplus ?
What is Giffen Good ?