If the investment demand curve is vertical it shows that
A. Monetary and fiscal policies are ineffective
B. Both monetary and fiscal policies are effective
C. Monetary policy is effective but fiscal policy is ineffective
D. Monetary policy is ineffective but fiscal policy is effective
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An indifference curve shows combination that yields . . . . . . . .
A. Equal utility
B. Equal output
C. Different output
D. Different utility
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Total Revenue =
A. Price × Quantity
B. Price × Income
C. Income × Quantity
D. None of these
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Price discrimination policy helps in increasing profits in case of
A. perfect competition
B. monopolistic competition
C. monopoly
D. oligopoly
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An income demand curve for an inferior commodity slopes
A. horizontal
B. vertical
C. upwards to the right
D. downwards to the right
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Economic liberalism started in India-
A. by substantial changes in the licensing policy
B. by removing procedural hurdles for foreign direct investment
C. by significantly reducing the import tax rates
D. All of the above
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'A seller market is one' where-
A. Where sellers find it difficult to sell
B. It is convinient for the buyers to buy
C. Sellers can sell what they produce
D. Buyers dominate the market
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The elasticity of supply for the supply function of q = 20p is
A. zero
B. unity
C. more than unity
D. less than unity
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Statement-I: The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement-II: After the New Industrial Policy - 1991, the Balance of Trade for India has always been positive.
A. Statement (I) is correct, but (II) is incorrect
B. Statement (II) is correct, but (I) is incorrect
C. Both Statements (I) and (II) are correct
D. Both Statements (I) and (II) are incorrect
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Government accounting is based on:
A. Inflation accounting
B. Social accounting
C. Single accounting system
D. Double accounting system
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A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are
A. maximum possible positive
B. minimum possible positive
C. equal
D. zero
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A demand curve regressive at the lower end depicts the case of
A. A normal good
B. A good commonly demanded
C. An inferior good
D. A good demanded urgently
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If the short-run average variable costs of production for a firm are rising, then it indicates that
A. The average total costs are at a maximum
B. The average fixed costs are constant
C. The marginal costs are above average variable costs
D. The average variable costs are below average fixed costs
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If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is
A. In long-run equilibrium
B. In short-run equilibrium
C. Minimizing short-run average total cost
D. Breaking even
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Which of the following commodities has the lowest elasticity of demand?
A. Milk
B. Black pepper
C. Eggs
D. Car
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Assertion (A): Want - the satisfying power of commodity is called its utility.
Reason (R): Utility may not have the characteristic of morality codes.
A. Both (A) and (R) are true
B. (A) is true but (R) is false
C. Both (A) and (R) are false
D. (R) is true but (A) is false
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Shifts in demand curve as shown in the figure below represents
A. extension of demand
B. increment of demand
C. increase of demand
D. expansion of demand
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The total area under the demand curve of a good, measures
A. marginal utility
B. total utility
C. consumer's surplus
D. producer's surplus
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Normally when price per unit of a good falls, its
A. quantity demanded increases
B. quantity demanded decreases
C. quantity demanded remains constant
D. none of these happens
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If the market demand curve for a commodity has a negative slope, then the market structure must be
A. Perfect competition
B. Monopoly
C. Imperfect competition
D. The market structure cannot be determined from the given information
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