Question

22.The price of Jamaican Blue Mountain coffee is $100 per bag in 2018. In 2019, itrises to $110 per bag. However, the overall quantity of Jamaican Blue Mountain coffeedoes not change. What is the most likely explanation?

(A) Both supply and demand increase.

(B) Both supply and demand decrease.

(C) Supply increases, while demand decreases.

(D) Supply decreases, while demand increases.

23.Which of the following is the best example of an inferior good?

(A) A Lamborghini.

(B) Instant coffee.

(C) Silk scarves.

(D) Electricity.

24.Which of the following is the best summary of Karl Popper’s definition of ‘science?’

(A) Science is the study of the natural world, through observation and experimentation.

(B) Science is a set of statements that can be falsfied with data.

(C) Science is a systematic enterprise that builds and organizes knowledge in the formof testable explanations and predictions about the universe

(D) ... Kanye is the GOAT.

Answer 1

Question 22

It has been stated that price of coffee has increased but overall quantity has not changed.

An increase in price happens but quantity does not change when supply decrease but demand increases and the magnitude of decrease in supply is equal to the magnitude of the increase in demand.

Hence, the correct answer is the option (D) [Supply decreases, while demand increases].

Question 23

Inferior good is the good whose demand decreases as the income increases and whose demand increases as the income decreases.

Instant coffee is an inferior good because increase in income induces consumers to substitute it for expensive fresh coffee.

Hence, the correct answer is the option (B).

Question 24

Karl Popper has propounded the theory of falsification.

According to this theory, science is a set of statements that can be flasified with data.

If a statement cannot be falsified then it can not be science.

Hence, the correct answer is the option (B).