Who is called the father of modern economics
Or
called the father of economics
A. Molthus
B. Adam Smith
C. Robbins
D. Marshall
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Compared to the case of perfect competition, a monopolistis more likely to
A. charge a higher price
B. produce a lower quantity of the product
C. make a greater amount of economic profit
D. All of the above
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If the demand of a commodity is inelastic, an increase in its price will cause the total expenditure of the consumers of the goods to
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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Which of the following committees presented suggestions for reforms in the financial sector of India
A. Abid Hussain committee
B. Bhagwat committee
C. Chailaiya committee
D. Narasimhan committee
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Maximum loss of a firm (in short period) will be
A. equal to variable cost
B. equal to fixed cost
C. zero
D. equal to average cost
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Cartels under oligopoly do not survive for long because of
A. Inter-firm rivalry
B. Low profits
C. High cost of marketing
D. Heavy losses
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If for a producer, the stage of negative returns to a given variable factor is prevailing, then the TPP will be
A. Increasing at an increasing rate
B. Increasing at a diminishing rate
C. Constant
D. Falling
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Which of the following is not the assumption of consumer's equilibrium in demand theory?
A. Transitivity
B. Optimum Satisfaction
C. Consumer's Choices are Consistent
D. None of these
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Income elasticity of demand is the percentage change in quantity demanded divided by the percentage change in income. Which type of goods have negative income elasticity of demand?
A. Inferior goods
B. Normal goods
C. Substitute goods
D. Complementary goods
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'Kinked' demand curve is related with
A. Monopoly
B. Discriminating monopoly
C. Oligopoly
D. Perfect competition
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A profit maximising monopolist in two separate markets will
A. always charge a higher price in less selling market
B. always charge higher price in more selling market
C. charge same price in both markets
D. adjust his sales in the two markets, so that his MR in each market just equals his marginal cost
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Consider the following statements.
1. Monopolistic competition is characterised by full control over price.
2. In monopoly, the product may or may not be homogeneous.
3. Perfect mobility of the factors is the characteristic of oligoploy.
Which of the statement(s) given above is/are correct?
A. Only 1
B. Only 2
C. Only 3
D. None of the above
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Under perfect competition (when input prices are fixed and there are no external economies or diseconomies), the industry supply curve is derived by
A. vertically adding the average cost curves
B. horizontally adding the average cost curves
C. vertically adding the marginal cost curves
D. horizontally adding the marginal cost curves
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In which one of the following market situations, are the firms mutually interdependent in pricing-output decisions?
A. Perfect competition
B. Monopolistic competition
C. Monopsony
D. Oligopoly
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According to marginal productivity theory, the price of a factor is determined by?
A. Selling price
B. Cost
C. Marginal productivity
D. Cost pricing
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Consumer is said to be in equilibrium, maximising his total utility, when
A. the marginal utilities of the two goods consumed are equal
B. the proportions of the marginal utilities and respective prices are equal
C. the consumer gets full satisfaction from the consumption
D. the consumer feels satisfied with his expenditure on the various goods
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If demand increases in a market, this will usually lead to
A. a higher equilibrium price and output
B. a lower equilibrium price and higher output
C. a lower equilibrium price and output
D. a higher equilibrium price and lower output
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The difference between total cost and total fixed cost represents
A. Total opportunity cost
B. Average cost
C. Total variable cost
D. General cost
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Supplementary costs in production are incurred to-
A. make the demand curve less elastic
B. bring down the per unit cost of production
C. provide after-sales service
D. ensure increasing returns
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The demand curve of a firm in perfect competition is
A. downward sloping
B. a rectangular hyperbola
C. parallel to the x-axis
D. parallel to the y-axis
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