Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

Related Mcqs:

1. The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

   A. The price elasticity of demand is -2
   B. The good is inferior
   C. Income elasticity is + 0.5
   D. Income elasticity is + 2

2. Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?

   A. Rs30,000
   B. Rs35,000
   C. Rs75,000
   D. Rs70,000

3. Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?

   A. Rs80,000
   B. Rs30,000
   C. Rs75,000
   D. Rs70,000

4. Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?

   A. Rs20,000; Rs20,000; Rs22,000
   B. Rs1,000; Rs14,333; Rs1,000
   C. Rs20,000; Rs13,100; Rs1,000
   D. Rs1,000; Rs20,000; Rs22,000

5. Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?

   A. $145
   B. $40,000
   C. $25
   D. $100

6. The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?

   A. 3000
   B. 7000
   C. 5500
   D. 4500

7. If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

   A. Rs18,000
   B. Rs20,000
   C. Rs2,000
   D. Rs0.

8. Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?

   A. 550 units
   B. 500 units
   C. 450 units
   D. 490 units

9. If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ?

   A. -4
   B. 0.25
   C. 4
   D. -0.25

10. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

    A. 30%
    B. 10%
    C. 70%
    D. 40%