Match the items of
List-I with the items of
List-II and choose the correct.
List-I List-II
a. Income elasticity less than unity
1. Competitive goods
b. Cross elasticity less than unity
2. Inferior foods
c. Cross elasticity less than zero
3. Superior goods
d. Income elasticity less than zero
4. Complementary goods
A. a-1, b-2, c-3, d-4
B. a-4, b-3, c-1, d-2
C. a-3, b-1, c-4, d-2
D. a-4, b-1, c-2, d-3
Select an option to see the answer and solution.
The lines ABCD represents which type of a curve?
A. Kinked curve of oligopoly
B. Price rigidity curve
C. Demand curve for duopoly
D. None of the above
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Goods which are paradoxical to the law of demand are
A. giffen goods
B. substitute goods
C. complementary goods
D. None of the above
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The various degrees of price elasticity of demand can be shown on a single demand curve as per which one of the following?
A. Total outlay method
B. Proportional method
C. Arc method
D. Geometrical method
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Which of the following is the best general definition of the study of business economics?
A. The best way to invest in the stock market
B. Behaviour of the firm in theory and practices
C. Individual choice in the face of scarcity
D. Use of economic theories for making business decisions
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The kinked demand curve model of oligopoly assumes that the price elasticity of demand
A. In response to a price increase is more than the elasticity of demand in response to price decrease
B. Is constant regardless of whether price increase or decrease
C. Is infinite, if price increase and zero, if price decreases
D. In response to a price increase is less than the elasticity of demand in response to a price decrease
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Given the production function q = 4L + K, what is the formula for the marginal product of labour?
A. 4 + k
B. 4
C. 4k
D. Cannot be determined with the information given
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Census is conducted in India, each
A. In 7 years
B. In 10 years
C. In 15 years
D. In 20 years
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Implicit costs are
A. Equal to total fixed costs
B. Comprised entirely of variable costs
C. Payments for self-employed resources
D. Always greater in the short-run than in the long-run
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Consider the following statements.
A. Only 3
B. Only 2
C. Only 1
D. All of the above
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Adam Smith spoke about the famous diamond water paradox to show that
A. utility is related to supply
B. utility could be the cause of value
C. utility is related to demand
D. utility could not be the cause of value
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Income elasticity of demand is positive for all persons for-
A. inferior goods
B. giffen goods
C. capital goods
D. normal goods
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The elasticity of demand for luxury good is
A. Infinite
B. More than One
C. Less than One
D. Equal to One
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Market Failure may NOT arise in the case of
A. increasing returns to scale
B. public goods
C. the consumption externalities
D. income inequalities
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The cross elasticity of demand is
A. Proportional change in the demand of commodity Y Proportional change in the price of commodity X
B. Proportional change in the demand of commodity Y Proportional change in the demand of commodity X
C. Proportional change in the price of commodity Y Proportional change in the demand of commodity X
D. All the statements are correct
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The rent earned by a factor of production is equal to
A. This product can earn in the next best use
B. The sum of this output accrues in its present use and what it can earn in its next best use
C. His present earnings
D. The difference between what this factor is currently earning and what this factor can obtain in its next best use
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Which one among the following is not the salient feature of industrial policy since 1991?
A. Enormous expansion of the private sector
B. Redefining the role of public sector
C. Limited exposure of Indian industry to foreign competition
D. Pruning of the list of items reserved for SSI units
Select an option to see the answer and solution.
Average cost is equal to marginal cost at the point where
A. Average cost is the lowest
B. Marginal cost is the lowest
C. Marginal cost is falling
D. None of the above
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When the MC of a monopolist is Rs. 6 and price is Rs. 10, the degree of monopoly will be measured as-
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Efficient allocation of resources to the maximum extent that can be achieved:
A. In Oligopoly
B. In Monopoly
C. In monopolistic competition
D. In perfect competition
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