A concept which has importance in the equilibrium analysis and thus economic analysis is
A. Opportunity cost
B. TFC
C. AFC
D. MC
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Thomas Malthus believed
A. Production cannot keep on increasing
B. The population of a country will always increase
C. Food supplies place a limit to the growth of population
D. Population increase leads to a fall in output
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For an economy which consist of single automobile maker and that in year 2014, 30,000 vehicles are produced with an average price of Rs. 5 lakh. For this economy what would be the increase in the nominal GDP for 2015 compared with 2014 with the 4% greater automobile production and 8% inflation.
A. 4.0%
B. 12.0%
C. 6.0%
D. 12.32%
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In the long run, competitive equilibrium
A. every firm will earn only normal profit
B. every firm will earn economic profit
C. every firm will incur losses
D. marginal firm will earn no profit
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Under perfect competition, the long run equilibrium of the firm is established at
A. minimum point of LAC
B. highest point of LAC
C. minimum point of SAC
D. highest point of SAC
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Marginal cost curve
A. Has the shape of the inverted U
B. Has the shape of the alphabet U
C. Has the shape a rectangular hyperbola
D. All of these
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Given:
The given curve is a
A. Macro-Statics
B. Macro-Dynamics
C. Comparative Statics
D. Capital Budgeting
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The law of diminishing returns or increasing cost will operate at an earlier level in agriculture than in industry because
A. Agriculture is an industry where land is used extensively
B. Less mechanisation is applicable to agriculture
C. More labour is used in agriculture
D. None of the above
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When a monopolist is able to sell each separate unit of the output at a different price according to the pocket of the customer, he is applying
A. first degree price discrimination
B. second degree price discrimination
C. third degree price discrimination
D. None of the above
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Macro-economics basically concerns with which of following in an economy?
A. Industry, Trade and Commerce
B. Agriculture, Industry and Trade
C. Employment, Inflation and Growth
D. Population, Income and Economic Planning
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Isoquant refers to
A. An equal quantity curve of a consumer
B. The production indifference curve
C. Another name of indifference curve
D. An equal cost curve of a producer
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Written in this form, the CES constant Elasticity of substitution production function exhibits
A. Decreasing returns to scale
B. Constant returns to scale
C. Increasing returns to scale
D. None of these
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The area which lies under the demand curve for a given good measures
A. Disutility
B. Total utility
C. Marginal utility
D. Marginal cost of production
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The economically relevant range of the total utility curve is the portion over which
A. The total utility is rising at a declining rate
B. The total utility is maximum and constant
C. The total utility is rising at an increasing rate
D. The total utility is declining
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Indicate the correct answer for the scope of managerial economics from the following.
1. Demand analysis
2. Production and cost analysis
3. Pricing and investment decisions
4. Factor pricing decisions
5. Economic environmental analysis
A. 1, 2, 3, 4
B. 2, 3, 4, 5
C. 1, 2, 3, 5
D. 1, 3, 4, 5
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Assertion (A) The perceived risk of operating a domestic firm in international environment is much higher.
Reason (R) The international environment is more volatile and the domestic firm generally does not have full information about the environment.
A. Both (A) and (R) are correct
B. Both (A) and (R) are incorrect
C. (A) is Correct while (R) is incorrect
D. (A) is incorrect while (R) is correct
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The MC curve cuts AVC and ATC curves at
A. falling parts of each
B. different points
C. rising parts of each
D. their minimum level
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The share of revenues paid to suppliers does not depend upon
A. relative productivity
B. resource scarcity
C. input market competition
D. output market competition
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If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is
A. Equal to 1
B. Greater than 1
C. Less than 1
D. Zero
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Demand is a function of
A. Price
B. Firm
C. Product
D. Cost
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