Match the following.
List-I List-II
a. Cross elasticity is zero
1. Price = AVC
b. Shut down point
2. Two commodities are independent
c. Slutskey theorem
3. Transformation line
d. Production possibility
4. Substitution effect
A. a-2, b-4, c-1, d-3
B. a-3, b-2, c-1, d-4
C. a-1, b-3, c-2, d-4
D. a-2, b-1, c-4, d-3
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Which of the following economists has termed fixed cost as complementary cost?
A. Marshall
B. Prof. Ben
C. Prof. Sen
D. None of these
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In the kinked demand curve model, if one firm reduces its price
A. other firms will also reduce their price
B. other firms will compete on a non-price basis
C. other firms will raise their price
D. All of the above
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If the marginal product of labour is below the average product of labour, it must be true that
A. The marginal product of labour is negative
B. The marginal product of labour is zero
C. The average product of labour is falling
D. The average product of labour is negative
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When both the price of a substitute and the price of a complement of commodity X rise, the demand for X-
A. rises
B. falls
C. remains unchanged
D. all of the above are possible
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If you know that with 8 units of output, the average fixed cost is Rs. 12.50 and the average variable cost is Rs. 81.25, then total cost at this output level is
A. Rs. 93.75
B. Rs. 97.78
C. Rs. 750
D. Rs. 880
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If the demand curve is a rectangular hyperbola, elasticity is
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Which of the following is a differentiated product?
A. A hamburger
B. A shirt
C. An automobile
D. All of the above
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Which one of the following is not a characteristics of monopolistic competition?
A. Relatively small number of producers
B. Rigidity of pricing policy
C. Product differentiation
D. Price equilibrium where MR = MC
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Hidden disquieted employment is the specialty of which sector?
A. Industry
B. Trade
C. Agriculture
D. Transportation
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A negative income elasticity of demand for a commodity indicates that as income falls the amount of the commodity purchased
A. rises
B. falls
C. remains unchanged
D. any of the above
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A model of game theory of oligopoly is known as
A. Prisoner dilemma
B. Monopoly cell
C. Jailhouse sentence
D. Jury box
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Name the first person to get nobel prize in economics-
A. Ragner Frisch and Jan-Tinbergen
B. Gunuar Mirdal and F. Von Hayek
C. Paul Samuelson
D. Milton Friduran
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A depreciation of the US dollar relative to foreign currencies will make
A. Foreign imports less expensive in the United States
B. US exports less expensive in foreign countries
C. The demand for US exports decrease
D. All of the above
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When the TR curve and TC curve moves in parallel and TR exceeds TC
A. normal profit is maximised
B. abnormal profit is maximised
C. total profit is maximised
D. total profit is minimised
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Which of the following is not the reason for increasing returns to scale?
A. Indivisibility of the factors
B. Fuller utilisation of fixed factors
C. Greater specialisation of factors
D. Dimensional economies
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In which of the following year the industrial policy resolution was not announced?
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In a free-enterprise economy, the problems of what, how and for whom are solved by
A. a planning committee
B. the elected representatives of the people
C. the price-mechanism
D. none of the above
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If ATC curve is a rising straight line, then as output expands, MC curve will
A. lie above the ATC curve
B. lie below the ATC curve
C. Both coincide
D. None of these
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If capital 'K' is plotted on the vertical axis and labour 'L' on the horizontal axis, then the slope of the straight line iso-cost curve will be
A. P L P K
B. P K P L
C. − P K P L
D. − P L P K
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