Match the items of the List-I with those of List-II and suggest the correct answer from the following.
List-I List-II
a. GDP
1. National income
b. GDP at factor cost
2. NDP plus net flow of income from abroad
c. NNP at factor cost
3. Money value of final goods and services produced
d. NNP
4. Total gross value added by all enterprises in the economy
A. a-1, b-3, c-2, d-4
B. a-3, b-4, c-1, d-2
C. a-4, b-3, c-2, d-1
D. a-2, b-1, c-4, d-3
Select an option to see the answer and solution.
Market demand for any good is a function of the
A. price per unit of goods
B. price of other goods
C. income and tastes of consumers
D. all of the above
Select an option to see the answer and solution.
Match the following:
List-I (GNP) List-II (Formula)
a. GNP at factor cost
1. GNP at market prices - Indirect taxes + subsidies
b. GNP at market prices
2. GDP at market prices + Net Income from Abroad
c. GNP as per Expenditure method
3. Private consumption + Gross Domestic Private investment + Net foreign Investment + Government Expenditure on goods and services
d. GNP as per Income method
4. Wages and salaries + Rents + Interests + Dividends + Undistributed corporate profits + Mixed Incomes + Direct taxes + Indirect Taxes + Depreciation + Net Income from Abroad
A. a-1, b-2, c-3, d-4
B. a-4, b-1, c-3, d-2
C. a-3, b-1, c-2, d-4
D. a-3, b-4, c-2, d-1
Select an option to see the answer and solution.
One common definition of luxury goods is goods with an income elasticity
A. Greater than one
B. Equal to one
C. Less than one but more than zero
D. None of these
Select an option to see the answer and solution.
If the M U y M U x M U y M U x
A. Y in exchange for more X from B
B. Y in exchange for more X from A itself
C. Y in exchange for less X from B
D. X in exchange for less Y from A
Select an option to see the answer and solution.
Which of the following is one of the assumptions of the indifference curve analysis?
A. Independent utility
B. Ordinal utility
C. Cardinal utility
D. Constant marginal utility of money
Select an option to see the answer and solution.
Adam Smith spoke about the famous diamond water paradox to show that
A. Utility could be the cause of value
B. Utility is related to demand
C. Utility is related to supply
D. Utility could not be the cause of value
Select an option to see the answer and solution.
Which of the following is the method of measuring elasticity of demand when change in price of a commodity is substantial?
A. Point method
B. Percentage method
C. Arc method
D. None of these
Select an option to see the answer and solution.
Long run equilibrium price of a perfect competitive firm is always
A. Equal to AFC
B. Below the LAC
C. Above the LAC
D. Equal to LAC
Select an option to see the answer and solution.
Elasticity of demand measures the
A. responsiveness of sales to change in advertisement expenditure
B. responsiveness of demand to change in supply of goods
C. change in price due to change in demand
D. change in demand due to change in tastes of consume
Select an option to see the answer and solution.
National income is
A. The net output of commodities and services flowing during a year from the country's productivity system in the hands of the ultimate consumers
B. The net interest
C. The net dividend
D. The net depreciation
Select an option to see the answer and solution.
Match the following:
a. Various combinations of two commodities that a consumer can purchase
1. Indifference map
b. Various combinations of two commodities that give consumer equal satisfaction
2. Indifference curve
c. A set of indifference curves
3. Budget line
d. Point of tangency of a budget line and an indifference curve
4. Consumer's equilibrium
A. a-2, b-3, c-4, d-1
B. a-4, b-3, c-2, d-1
C. a-1, b-2, c-4, d-3
D. a-3, b-2, c-1, d-4
Select an option to see the answer and solution.
Your firm is selling 1,000 units at a price of Rs. 10 per unit. The firm's total explicit cost is Rs. 8,000. The firm's implicit cost is Rs. 1,000 and the opportunity cost of your time in managing the firm is Rs. 1,000. In the above situation, which one of the following is true?
A. Accounting profit is 0
B. Economic profit is less than the accounting profit
C. Marginal cost is Rs. 1,000
D. Economic profit is Rs. 1,000
Select an option to see the answer and solution.
Which of the following statements is correct or more nearly correct?
A. If the price of a commodity falls, its value relative to other goods does not change
B. Value has nothing to do with price
C. An increase in the price of commodity represents a fall in its value
D. The price of a good is its value measured in terms of money
Select an option to see the answer and solution.
In case of an inferior commodity, the income elasticity of demand is
A. zero
B. negative
C. unitary
D. positive
Select an option to see the answer and solution.
An increase in injections into the economy may lead to
A. an outward shift of aggregate supply and cost push inflation
B. an outward shift of aggregate demand and demand pull inflation
C. an outward shift of aggregate supply and demand pull inflation
D. an outward shift of aggregate demand and cost push inflation
Select an option to see the answer and solution.
Which of the following occupations should be included under the heading of "Primary production"?
A. 1 and 3
B. 1 and 2
C. 1 only
D. 1, 2, 3 and 4
Select an option to see the answer and solution.
Increase in demand due to decrease in price of that commodity is termed as
A. increment in demand
B. increase in demand
C. extension of demand
D. change of demand
Select an option to see the answer and solution.
While analysing Marshall's measure of consumer's surplus one assumes
A. Monopoly
B. Perfect competition
C. Imperfect competition
D. Monopsony
Select an option to see the answer and solution.
The MP of a factor
A. Is always either positive or zero
B. Is always positive
C. Can be positive, negative or zero
D. Is always negative
Select an option to see the answer and solution.
