A consumer is a rational individual who knows what is good and bad for him/her. So, he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.
Which is an example of a substitute good?
Tea and coffee
The correct answer is Tea and coffee.
Substitute goods are **products that can replace each other in consumption**.
- **Tea and coffee** are substitutes because consumers can choose one over the other based on preference or price changes.
- **(a) Pen and ink** and **(b) Car and petrol** are complementary goods, meaning they are used together.
- **(d) Shoes and socks** are also complements, not substitutes.
Important Questions from Forms of Market and Price Determination
The following statements are about measuring poverty. Select the correct statement:
(A) There are many ways of measuring poverty
(B) Poverty may be measured on the basis of monetary value of the minimum calorie intake
(C) Government uses Monthly Per Capita Expenditure as a proxy for income of households to identify the poor
(D) Measures of poverty differ for different sections of society
(E) Factors such as accessibility to basic education, health care, drinking water & sanitation are not considered to develop poverty line
Choose the correct answer from the options given below:
Which among the following statements is not correct about WTO?
Select the correct statement related to Alternate marketing channels:
(A) In the alternate marketing channels, Farmers sell their products directly to consumers.
(B) In the alternate marketing channels, Farmers sell their products directly to the Central Government.
(C) In the alternate marketing channels, Farmers sell their products to the Middle men.
(D) In the alternate marketing channels, Farmers sell their products directly to the whole sale market.
Choose the correct answer from the options given below:
Match List - I with List - II:
List - I List - II (A) Income Method (I) Calculated at current prices (B) Expenditure Method (II) Calculated at constant prices (C) Real GDP (III) Aggregate of final expenditures (D) Nominal GDP (IV) Aggregate of factor incomes Choose the correct answer from the options given below:
The shape of supply curve of foreign exchange is:
