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Revealed preference theory assumes


A) weak ordering
B) strong ordering
C) constant ordering
D) multiple ordering

E) C) and D)
F) None of the above

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At the point of tangency the slope of indifference curve is


A) differ from point to point
B) is equal on the other side of the mid point
C) is the same
D) is increasing

E) A) and B)
F) All of the above

Correct Answer

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If both the products X & Y are normal goods


A) slopes down towards right
B) slopes up towards right
C) slopes up towards left
D) slopes down towards left

E) None of the above
F) B) and D)

Correct Answer

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The substitution effect for a commodity is


A) is always positive
B) depends upon the nature of the commodity
C) depends upon price effect
D) sometimes negative and sometimes positive

E) B) and C)
F) All of the above

Correct Answer

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