Match List-I with List-II and select the correct answer. List-I List-II a. Offer curve 1. Market segmentation b. Laffer curve 2. Sticky price c. Lorenz curve 3. Reciprocal demand d. Kinked curve 4. Inequalities 5. Public revenue

a-1, b-4, c-5, d-3
a-3, b-5, c-4, d-2
a-1, b-5, c-3, d-2
a-4, b-2, c-3, d-1

The correct answer is C. a-1, b-5, c-3, d-2.

  • An offer curve is a graph that shows the relationship between the quantity of a good that a country is willing to export and the price of that good. It is a tool used in international trade to analyze the gains from trade.
  • The Laffer curve is a graph that shows the relationship between tax rates and tax revenue. It is named after economist Arthur Laffer, who argued that there is a point at which increasing tax rates will actually decrease tax revenue.
  • The Lorenz curve is a graph that shows the distribution of income in a country. It is a tool used to measure inequality.
  • A kinked curve is a type of demand curve that has a kink in it. It is used to model situations where there is a sudden change in demand at a certain price.

Here is a more detailed explanation of each option:

  • Option A is incorrect because it matches the offer curve with market segmentation. Market segmentation is a marketing strategy that divides a market into smaller groups based on shared characteristics. The offer curve is a tool used in international trade to analyze the gains from trade.
  • Option B is incorrect because it matches the Laffer curve with inequalities. Inequalities are differences in the distribution of income, wealth, or opportunity. The Laffer curve is a graph that shows the relationship between tax rates and tax revenue.
  • Option C is correct because it matches the offer curve with reciprocal demand, the Laffer curve with public revenue, the Lorenz curve with inequalities, and the kinked curve with demand.
  • Option D is incorrect because it matches the offer curve with sticky prices. Sticky prices are prices that do not change easily, even when there is a change in demand or supply. The offer curve is a tool used in international trade to analyze the gains from trade.
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