Match the following.
List-I List-II
a. Law oi diminishing marginal utility
1. Cross demand
b. Relationship between price of one commodity and demand for other commodity
2. Oligopoly
c. Skimming the cream policy
3. Cardinal approach
d. Price rigidity
4. Pioneer pricing
A. a-1, b-2, c-3, d-4
B. a-3, b-1, c-2, d-4
C. a-2, b-4, c-1, d-3
D. a-4, b-3, c-2, d-1
Select an option to see the answer and solution.
Assertion (A): If the monopolist faces identical demand curves for his commodity in two separate markets, by practising third degree price discrimination, he cannot increase his TR and total profits.Reason (R): As the marginal revenue curves are identical when the demand curves in the two markets are the same, the monopolist will not charge different prices in each market to maximise profits.
A. Both A and R are true and R is the correct explanation of A
B. Both A and R are true, but R is NOT a correct explanation of A
C. A is true, but R is false
D. A is false, but R is true
Select an option to see the answer and solution.
On the expansion path of the firm operating with homogeneous production function, which among the following remain constant?
A. 1 and 4
B. 1 and 2
C. 2, 3 and 4
D. 1, 2, 3 and 4
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If the price of coffee suddenly shoots up. Ceteris paribus, the demand for tea is expected to
A. move rightward along the original demand curve
B. increase
C. remain unaffected
D. decrease
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Dan Patinkin has proved the law of proportionality with the help of which of the following effect
A. Price effect
B. Income effect
C. Substitution effect
D. Actual balance effect
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'Life Expectancy' term is used for:
A. Standard of living
B. Poverty
C. Income
D. Age
Select an option to see the answer and solution.
Micro-economic theory studies how a free-enterprise economy determines
A. the price of goods
B. the price of services
C. the price of economic resources
D. all of the above
Select an option to see the answer and solution.
Select the techniques of monetary control adopted by RBI from the following:
A. (i), (ii), (iii), (iv)
B. (ii), (iii), (iv)
C. (i), (iii), (iv)
D. (i), (ii), (iii)
Select an option to see the answer and solution.
With regard to business cycles which of the following is not true?
A. Expansion, recession, depression and recovery are the four phases of business cycles
B. Business cycle is a part of the capitalist system
C. According to Keynes, "The trade cycle is a purely monetary phenomenon"
D. The innovations theory of business cycle is associated with the name of Joseph Schumpeter
Select an option to see the answer and solution.
Total production will be maximum when
A. marginal production is maximum
B. average production is maximum
C. marginal production is zero
D. average production is equal to the marginal production
Select an option to see the answer and solution.
Good 'Y' is the substitute for good 'X' if
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
Select an option to see the answer and solution.
Match the following.
List-I List-II
a. Law of equi-marginal utility
1. Gossen
b. Ordinal utility
2. Hicks
c. Monopolistic competition
3. Mrs. Robinson
d. Marginal productivity theory of distribution
4. Clark
A. a-2, b-1, c-4, d-3
B. a-3, b-4, c-2, d-1
C. a-1, b-2, c-3, d-4
D. a-4, b-2, c-3, d-1
Select an option to see the answer and solution.
Match the following.
List-I List-II
a. Trade channel discount
1. Oligopoly pricing
b. Loss leadership
2. Locational price differentials
c. Pricing being non-responsive to changes in the demand and the cost
3. Differential pricing
d. Basing point pricing
4. Product line pricing
A. a-4, b-3, c-2, d-1
B. a-3, b-4, c-1, d-2
C. a-2, b-3, c-4, d-1
D. a-1, b-2, c-3, d-4
Select an option to see the answer and solution.
The notion of quasi rent for first defined by
A. Adam Smith
B. Piguo
C. Marshall
D. Ricardo
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The monopolistic firm will be in equilibrium, where
A. Price = Marginal cost
B. Marginal revenue = Marginal cost
C. Marginal revenue = Marginal cost = Price
D. None of the above
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Calculate elasticity of demand when a 60% increase in the price of rice causes the amount of rice you buy to fall by 120%
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The World Bank gives long term loans to developing member countries for how many years?
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Assume that the demand curve for a certain commodity is a downward-sloping straight line. In such case price elasticity of demand
A. cannot be estimated
B. decreases as price falls
C. increases as price falls
D. remains constant at every price
Select an option to see the answer and solution.
A sunk cost is
A. A past cost that cannot recover
B. An opportunity cost
C. The cost of drilling certain types of well for water
D. A cost that is highly relevant for decision-making
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Which one of the following is not correct about the price discrimination by a monopolist, who intends to
A. maximise the sales/profit
B. share the consumer's surplus
C. increase the welfare of masses
D. reduce the welfare of masses
Select an option to see the answer and solution.
