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CA Foundation Economics: related Business Economics practice — page 2

The practice bank below covers broader Business Economics topics; a dedicated Economics lesson is not available yet.

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Business Economics questions and exercises with answers

Showing questions 31–60 of 245.

A corner solution means the consumer buys what?Read the answer and worked solution →The locus of tangency points as income varies is called the what?Read the answer and worked solution →Taxes or quantity discounts can make a budget constraint what?Read the answer and worked solution →In the leisure-consumption model, the wage is the price of what?Read the answer and worked solution →An increase in income, prices constant, shifts the budget line how?Read the answer and worked solution →A good whose purchases fall as income rises is called what?Read the answer and worked solution →The income effect shows the change in demand caused by a change in what?Read the answer and worked solution →The price effect equals the sum of which two effects?Read the answer and worked solution →The substitution effect leaves the consumer on which indifference curve?Read the answer and worked solution →A price rise of good Y makes the budget line do what?Read the answer and worked solution →Consumer choice theory assumes consumers maximise what?Read the answer and worked solution →Marginal utility is the extra utility from what?Read the answer and worked solution →With each extra unit consumed, marginal utility typically does what?Read the answer and worked solution →Which function is the best known utility function in the theory?Read the answer and worked solution →Traditionally, rational behaviour of a consumer means what?Read the answer and worked solution →Behavioural economists say consumers often use shortcuts called what?Read the answer and worked solution →An impulsive purchase is an example of what, per behavioural critics?Read the answer and worked solution →Reluctance to spend on luxuries beyond a set limit reflects what?Read the answer and worked solution →The indifference curve idea in biology models what?Read the answer and worked solution →Consumer theory derives demand curves using budget lines and what?Read the answer and worked solution →The law of demand holds even when the consumer is compensated for a price rise. This is the what?Read the answer and worked solution →Which assumption makes curves smooth and convex to the origin?Read the answer and worked solution →Typically, the periodicity of business cycles ranges from about:Read the answer and worked solution →The simplest definition of a recession is:Read the answer and worked solution →The Kitchin cycle is an inventory cycle lasting about:Read the answer and worked solution →The Juglar fixed-investment cycle lasts about:Read the answer and worked solution →The Kuznets infrastructural investment cycle, also called the building cycle, lasts about:Read the answer and worked solution →The Kondratiev wave, a long technological cycle, lasts about:Read the answer and worked solution →Economist Clement Juglar first identified economic cycles in the year:Read the answer and worked solution →In Schumpeter's four-stage Juglar cycle, stock exchange crashes and many bankruptcies mark the stage of:Read the answer and worked solution →

Worked practice questions

A corner solution means the consumer buys what?

  1. Equal amounts of both
  2. Nothing at all
  3. Only one of the goods
  4. Only inferior goods
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Correct answer: C. Only one of the goods

When the tangency lies outside the feasible set, the optimum has the consumer consuming only one good.

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The locus of tangency points as income varies is called the what?

  1. Offer line
  2. Demand curve
  3. Budget frontier
  4. Expansion path
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Correct answer: D. Expansion path

Tracing the interior tangency points as income changes gives the expansion path.

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Taxes or quantity discounts can make a budget constraint what?

  1. Vertical
  2. Kinked
  3. Circular
  4. Disappear
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Correct answer: B. Kinked

Taxes, subsidies, discounts and rationing change prices with quantity, producing kinked or non-linear budget lines.

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More Business Economics topics

Price-Output Determination under Different Market FormsPublic FinanceSupplyLaw of DemandInternational TradeBasic Problems of an Economy and Role of Price MechanismProduction And CostBusiness Cycles