Assertion (A): The long run cost curve is L-shaped rather than U-shaped.Reason (R): The new techniques of production of large plants reduce the total costs per unit of output.
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
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Utility derived from consumption of an additional unit of a good is called
A. Total utility
B. Marginal utility
C. Additional utility
D. Derived utility
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In India, Census is conducted by
A. National Sample Survey Organisation
B. Central Statistical Organisation
C. Registrar General and Census Commissioner
D. None of the above
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If the cross price elasticity of demand between two goods is negative, then the two goods are
A. unrelated goods
B. substitutes
C. complements
D. normal goods
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Match the following.
List-I List-II
a. Joint demand
1. Tea and Coffee
b. Competitive demand
2. Domestic consumers and industrial users
c. Composite demand
3. Sugar and molasses
d. Joint supply
4. Lipton tea and Brooke Bond tea
e. Competitive supply
5. Car and Petrol
A. a-5, b-3, c-4, d-1, e-2
B. a-4, b-1, c-3, d-2, e-5
C. a-5, b-1, c-2, d-3, e-4
D. a-3, b-2, c-4, d-1, e-5
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A shutdown point is a point where the price is
A. Less than variable cost
B. Equal to variable cost
C. Equal to average cost
D. None of the above
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In general, the demand for necessities is relatively
A. inelastic
B. elastic
C. unity
D. None of these
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Product variation refers to
A. an activity undertaken by a firm to increase demand
B. a problem with quality control that tends to decrease demand
C. an activity undertaken by a firm to make demand more price inelastic
D. None of the above
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When in order to satisfy a given want, two or more goods are needed in combination, these goods are called
A. complementary goods
B. substitute goods
C. inferior goods
D. abnormal goods
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According to Lionel Robbins definition of economics, "Economics is a science which . . . . . . . ."
A. studies human behaviour
B. relationship between ends and scares resources
C. scarce means have alternate uses
D. All of the above
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In the short period, monopolist firm's equilibrium is at
A. Break-even point
B. AR > AC
C. AR < AC
D. All of these
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Fiscal policy is related to
A. Export and Import
B. Public revenue and expenditure
C. Issue of currency
D. Control of population
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A welfare loss occurs in monopoly where
A. the price is greater than the marginal cost
B. the price is greater than the marginal benefit
C. the price is greater than the average revenue
D. the price is greater than the marginal revenue
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Which of the following statement(s) is/are incorrect?
A. There exists an inverse relationship between demand for commodity and its price in case of complementary goods
B. There exists direct relationship between demand for commodity and its price in case of substitute goods
C. Both A and B
D. None of the above
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The monopolist maximises profit by producing and selling their output at that point on which its
A. Marginal revenue is greater than marginal cost
B. Marginal cost and marginal revenue both are equal
C. Marginal cost is greater than marginal revenue
D. Marginal revenue is greater than average revenue
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An indifference curve shows
A. Affordable combination of goods
B. The relative price of one good to another
C. Consumption possibilities that a consumer faces at different price and income
D. Different combination of two goods among which the consumer is indifferent
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If production is zero, then fixed cost for short term will be
A. Positive
B. Negative
C. Zero
D. None of these
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If MC is above AC at a time when output is rising, then
A. ATC is falling
B. AVC is rising
C. AVC is falling
D. ATR is rising
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Demand curve of a normal goods is
A. graphical presentation of law of demand
B. slopes downward
C. explain the relation between price and demand
D. All of the above
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The marginal revenue curve in monopoly
A. equals the demand curve
B. is parallel with the demand curve
C. lies below and converges with the demand curve
D. lies below and diverges from the demand curve
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