Question

Economic growth is, by definition, an increase in the

number of participants in the workforce.

average citizen’s standard of living.

average worker’s salary.

demand for goods.

ability to produce goods.

When both curves shift

equilibrium price is always indeterminate.

equilibrium price or equilibrium quantity is indeterminate, but we can’t predict which one.

equilibrium price and equilibrium quantity are indeterminate.

neither equilibrium price nor equilibrium quantity is indeterminate.

equilibrium quantity is always indeterminate.

According to marginal thinking, an individual will continue to consume until after the benefit of additional consumption ________ its cost.

is less than

is greater than

marginalizes

is equal to

totals

Answer 1

1. Economic growth is the improvement in a country’s productive capacity during short period. It is the yearly increase in country’s GDP.

Answer: Ability to produce goods.

2. The equilibrium quantity and price of a commodity is determined by the changes in demand and supply curve of a commodity. Any change in demand and supply curve changes the equilibrium condition of the market. But the changes in equilibrium price and equilibrium quantity depends upon the extent to which the supply and demand curve change. To what extent the price and equilibrium quantity changes depends upon the relative extent of change in demand and supply curves. Between the demand and supply, when one variable is change (either demand or supply) the price and quantity is determinate as we able to know to what extent the one variable change in relation to other. But when both the variables are changing the price and quantity is indeterminate as we unable to know the magnitude of the change in supply and demand.

Answer: equilibrium price and equilibrium quantity are indeterminate.

3. An individual attains maximum satisfaction when the marginal utility of the commodity is equal to the marginal utility of money he pays for the commodity. He continues to buy and consumes the commodity till its marginal utility is equal to the price he paid for the commodity. The consumer attains equilibrium or maximum satisfaction when the marginal utility of the commodity is equal to the marginal utility money or price he paid for the commodity. Thus a consumer continues to buy a commodity until after the marginal benefit of additional consumption is equal to its cost.

Answer: is equal to