Circular Flow Diagram MCQs with Answers PDF Download – Test 94

There are two types of market, like

1. normal and abnormal
2. good/services and FOP
3. oligopoly and monopoly
4. free and monopoly

A theory that seeks to explain changes in the pattern of international trade over time and that is based on a dynamic sequence of technological and product innovation and diffusion is known as

1. technological gap theory
2. diseconomies of scale
3. economies of scale
4. laissez faire theorem

The good that has positive coefficient of income elasticity of demand but is less than one is known as

1. inferior good
2. normal good
3. luxurious good
4. bad good

A distribution referred to as a distribution in specie, is a payment made in the form of securities or other property rather than in cash is known as

1. transfer payments
2. in-kind transfers
3. speculative payments
4. dividend payment

The situation that refers to differences in productivity of nations is known as

1. absolute advantage
2. comparative advantage
3. absolute disadvantage
4. comparative disadvantage