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Read the following passage and answer the question that follows:
| The ordinal list revolution originates in the criticism of the psychological foundations of the theory of demand, namely, the principle of decreasing marginal utility as Alfred Marshall ([1890] 1898) used it. The rejection of hedonist hypotheses led Irving Fisher (1892) and Pareto (1896-97, 1900, 1909) to favour an objective or "positive" approach to economic concepts. The "ordinal list revolution" (Omarzabal 1995, 116) is grounded in a methodological transformation of economics that put the facts of objective experience as a foundation of economics and provided a research program for the ensuing years (Green and Moss 1993; Lewin 1996). Mathematically, ordinalism is entirely based upon the idea that one can dispense with the use of a specific utility function and that no meaning shall be attached to utility measurement, except as an ordinal principle. Clearly, the development of ordinalism must be separated from the introduction of the concept of the indifference curve. Ordinalism was first advocated in Fisher's "Mathematics Investigations" (1892) and Pareto's Sunto (1900) and Manual ([1909] 1971), while the indifference curve had appeared in F. Y. Edge Worth's Mathematical Psychics (1881). It was thus only through Fisher's and Pareto's recasting that the concept of the indifference curve became irreversibly associated with the promotion of ordinalism. Along the way, the recasting of the theory of choice along ordinal list lines raised a number of issues (about integrability, measurability, and complementarity) that would be progressively settled. The reasonable closing date for the ordinalist revolution is 1950, after Houthakker's (1950) and Samuelson's (1950) contributions. From the late 1920s, the Paretian school was progressively gaining a larger audience while the use of the concept of marginal utility and other derivative concepts was challenged. Consequently, demand theory was recast along with the principles of individual preferences and ordinal utility functions. Nevertheless, English authors proved very silent about the meaning of indifference curves. Most if not all of the reflections after 1920 about the nature of indifference curves took place in America, mainly under the impulse of Henry Schultz at Chicago. This is an American story. |
Consider the given statement:
Under the Cardinal Utility approach, utility is measured in utility.
Chapter: [2] Consumer Behaviour and Demand
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Read the following passage and answer the question that follows:
| The ordinal list revolution originates in the criticism of the psychological foundations of the theory of demand, namely, the principle of decreasing marginal utility as Alfred Marshall ([1890] 1898) used it. The rejection of hedonist hypotheses led Irving Fisher (1892) and Pareto (1896-97, 1900, 1909) to favour an objective or "positive" approach to economic concepts. The "ordinal list revolution" (Omarzabal 1995, 116) is grounded in a methodological transformation of economics that put the facts of objective experience as a foundation of economics and provided a research program for the ensuing years (Green and Moss 1993; Lewin 1996). Mathematically, ordinalism is entirely based upon the idea that one can dispense with the use of a specific utility function and that no meaning shall be attached to utility measurement, except as an ordinal principle. Clearly, the development of ordinalism must be separated from the introduction of the concept of the indifference curve. Ordinalism was first advocated in Fisher's "Mathematics Investigations" (1892) and Pareto's Sunto (1900) and Manual ([1909] 1971), while the indifference curve had appeared in F. Y. Edge Worth's Mathematical Psychics (1881). It was thus only through Fisher's and Pareto's recasting that the concept of the indifference curve became irreversibly associated with the promotion of ordinalism. Along the way, the recasting of the theory of choice along ordinal list lines raised a number of issues (about integrability, measurability, and complementarity) that would be progressively settled. The reasonable closing date for the ordinalist revolution is 1950, after Houthakker's (1950) and Samuelson's (1950) contributions. From the late 1920s, the Paretian school was progressively gaining a larger audience while the use of the concept of marginal utility and other derivative concepts was challenged. Consequently, demand theory was recast along with the principles of individual preferences and ordinal utility functions. Nevertheless, English authors proved very silent about the meaning of indifference curves. Most if not all of the reflections after 1920 about the nature of indifference curves took place in America, mainly under the impulse of Henry Schultz at Chicago. This is an American story. |
______ is a curve showing different combinations of two goods, each combination offering the same level of satisfaction to the consumer.
Chapter: [2] Consumer Behaviour and Demand
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Point out a demerit of the fixed exchange rate.
Chapter: [7] Balance of Payments
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______ is the output at base-year prices.
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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Growth of GDP and Major Sectors (in %)
| Column I | Column II |
| (1) Feature of Perfect Competition | (a) Only one buyer |
| (2) Feature of the Monopoly Market | (b) Only a few sellers |
| (3) Features of Monopolistic Competition | (c) a Large Number of Buyers and Sellers |
| (4) Features of the Monopoly Market | (d) Only a few buyers |
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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Marginal revenue equals ______ price.
Chapter: [2] Consumer Behaviour and Demand
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What does Real GDP show?
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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If Marginal Propensity to Save (MPS) is 0.25 and the initial change in investment is ₹ 250 crores, then the final change in income would be ______.
Chapter: [2] Consumer Behaviour and Demand
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The focus of government budget is to:
Chapter: [6] Government Budget and the Economy
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GDP is not an appropriate indicator of welfare because of:
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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For a consumer to recognize how many commodities he/she should buy, which approach is used?
Chapter: [2] Consumer Behaviour and Demand
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Identify the correct pair as given in Column B by matching them with respective concepts in Column A:
| Column A | Column B | ||
| (1) | Reduction in the value of the domestic currency by the government | (a) | Devaluation |
| (2) | Reduction in the value of the domestic currency through market forces | (b) | Appreciation |
| (3) | Increase in the value of the domestic currency by the government | (c) | Depreciation |
| (4) | Increase in the value of the domestic currency through market forces | (d) | Revaluation |
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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Assertion (A): GDP does not exhibit the structure of the product.
Reason (R): If the increase in GDP is mainly due to increased production of war equipment and ammunitions, then such an increase cannot improve welfare in the economy.
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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The slope of the Total Revenue equals ______
Chapter: [2] Consumer Behaviour and Demand
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Consider the following statements:
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The use of public parks increases welfare
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The distribution of GDP increases welfare
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Higher GDP always causes higher welfare
Which of the above statements are false?
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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What does the Factor Cost represent?
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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Economists like Adam Smith follow which school of economics?
Chapter: [3] National Income and Related Aggregates - Basic Concepts and Measurement
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Identify the objective of the budget.
Chapter: [6] Government Budget and the Economy
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Production possibility curve slopes downwards from ______ to ______.
Chapter: [1] Introduction to Microeconomics
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Which of the following is the result of increase in price of factors of production?
Chapter: [1] Introduction to Microeconomics
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