1. The level of satisfaction is the same for a consumer along the same indifference curve. 2. Income elasticity of demand for a good is always positive 3. For a normal good, both the Engel curve and the demand curve are positively sloped. 4. The firm's total revenue decreases for an increase in price of the commodity if demand is price inelastic. II. Choose the Best Answer 5. For normal good, a. the income elasticity of demand is positive and greater than one. b. both the price offer curve and the demand curve are negatively sloped. c. both the Engel curve and the income offer curve are positively sloped. d. b and c are true. e. All are true. 6. If the cross price elasticity of demand between two commodities X and Y is negative, then X and Y are: a. substitutes b. giffen goods c. normal goods d. complements e. inferior goods 7. One of the following is not a shift factor of the demand curve for a given commodity. a. Income of the consumer b. Price of other related commodities c. Tastes and preferences d. Price of the commodity 8. One of the following is not true about the characteristics of well-behaved indifference curves. a. Indifference curves do not intersect b. Indifference convex to the origin. c. Indifference curves are concave from the origin d. Indifference curves farther from the origin represent higher utility 9. When we rank the utility gained from the consumption of different commodities as 1st, 2nd and 3rd etc, we are measuring utility: a. ordinally b. cardinally c. in both approaches d. traditionally 10. The cost that a firm incurs in purchasing or hiring any factor of production from outside the firm is referred to as: a. explicit cost b. implicit cost c. variable cost d. fixed cost​