Passive factor of production is
A. Only Land
B. Only Capital
C. Both Land & Capital
D. Neither Land nor Capital
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Under law of demand
A. Price of commodity is an independent variable
B. Quantity demanded is a dependent variable
C. Reciprocal relationship is found between price and quantity demanded
D. All of the above
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For inferior commodities, income effect is
A. Zero
B. Negative
C. Infinite
D. Positive
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Mixed economy means an economy where
A. Both agriculture and industry are equally promoted by the state
B. There is co-existence of public sector along with private sector
C. There is importance of small scale industries along with heavy industries
D. Economy is controlled by military as well as civilian rulers
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When total utility becomes maximum, then marginal utility will be
A. Minimum
B. Average
C. Zero
D. Negative
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Utility means
A. Power to satisfy a want
B. Usefulness
C. Willingness of a person
D. Harmfulness
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Marginal utility is equal to average utility at that time when average utility is
A. Increasing
B. Maximum
C. Falling
D. Minimum
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Which one of the following is the task of the Planning Commission?
A. Preparation of the plan
B. Implementation of the plan
C. Financing of the plan
D. None of the above
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At the point of satiety, marginal utility is
A. Zero
B. Positive
C. Maximum
D. Negative
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Total utility of a commodity is measured by which price of that commodity?
A. Value in use
B. Value in exchange
C. Both of above
D. None of above
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According to Marshall, the basis of consumer surplus is
A. Law of diminishing MU
B. Law of Equi-MU
C. Law of proportions
D. All of the above
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Which of the following bodies finalizes the Five Year Plan Proposals?
A. Planning Commission
B. Union Cabinet
C. National Development Council
D. Ministry of Planning
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What implication does resource scarcity have for the satisfaction of wants?
A. Not all wants can be satisfied
B. We will never be faced with the need to make choices
C. We must develop ways to decrease our individual wants
D. The discovery of new natural resources is necessary to increase our ability to satisfy wants
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Who expressed the view that 'Economics should be neutral between ends'?
A. Robbins
B. Marshall
C. Pigou
D. Adam Smith
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Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness?
A. The individual firm must have fewer than 10 employees
B. The individual firm faces a downward-sloping demand curve
C. The individual firm has assets less than Rs. 20 lakhs
D. The individual firm is unable to affect market price through its output decisions
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Which one of the following is true about Planning Commission?
A. It is a Ministry
B. It is a Government Department
C. It is an Advisory Body
D. It is an Autonomous Corporation
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A firm encounters its 'shutdown point' when
A. Average total cost equals price at the profit-maximizing level of output
B. Average variable cost equals price at the profit-maximizing level of output
C. Average fixed cost equals price at the profit-maximizing level of output
D. Marginal cost equals price at the profit-maximizing level of output
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Under ______ market condition, firms make normal profits in the long run.
A. Perfect competition
B. Monopoly
C. Oligopoly
D. None of the above
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Larger production of ___ goods would lead to higher production in future
A. Consumer goods
B. Capital goods
C. Agricultural goods
D. Public goods
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Economic survey is published by
A. Ministry of Finance
B. Planning Commission
C. Government of India
D. Indian Statistical Institute
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