Economics Paper 41

1

The price elasticity of demand is defined as the absolute value of the ratio of:






2

If a good is a luxury, its income elasticity of demand is:






3

A resource is something that:






4

If the cross-price elasticity between home personal computers and video game units for TV is positive, one can conclude that






5

As one moves along a convex isoquant, which of the following does not change?






6

Of the following goods, the one where the law of diminishing marginal utility is least likely to apply is:






7

The optimal purchasing rule states that total utility is maximized when a consumer:






8

Which of the following pairs come closest to being complementary goods?






9

A Giffen good:






10

When an industry expands its costs of production will:






Result

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