The price of a commodity is Rs. 20 and the quantity demanded at this price is 200 units. If the price falls to Rs. 16 and the quantity demanded increases to 280 units, calculate the price (arc) elasticity
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Price control will effect the monopolist firm's
A. equilibrium output and profits
B. equilibrium output
C. profits
D. average revenue in the short run
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Which is the method of measuring GNP?
A. Expenditure method
B. Income method
C. Product method
D. All of these
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Consider the following demand schedule
Price per unit (Rs.)Quantity demanded (000)
6
3
5
9
4
15
3
20
When price falls from Rs. 5 to Rs. 4, elasticity of demand can be expressed numerically as
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Given, = t = 1 ∑ n ( 1 + i ) t T R t − T C t
A. Value of the firm
B. Capital budgeting
C. Profit
D. Cost of capital
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Excess capacity is not found under
A. Monopolistic competition
B. Monopoly
C. Perfect competition
D. Oligopoly
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In the long-run, due to blocked entry pure profits can be made by
A. Pure duopolist
B. Pure monopolist
C. Pure oligopolist
D. None of the above
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An entrepreneur will stay in business in the long run as long as he meets
A. Variable costs of production
B. Fixed costs of production
C. All costs of production
D. None of these
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If the demand curve is a rectangular hyperbola, elasticity is
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In the case of an inferior good, the income effect
A. Partially offsets the substitution effect
B. Is equal to the substitution effect
C. Reinforces the substitution effect
D. More than offsets the substitution effect
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At the point of inflexion, the marginal utility is
A. Negative
B. Decreasing
C. Maximum
D. Increasing
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A rightwards shift in supply curve indicates
A. An increase in quality supplied
B. A decrease in supply
C. An increase in supply
D. None of the above
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Among the causes of inflation can be listed
A. Both 1 and 2
B. Both 2 and 3
C. Both 1 and 4
D. All of the above
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Which one of the following is not studied in macro economics?
A. General theory of employment, interest and money
B. Market structure and pricing decision's
C. Foreign trade
D. Theories of economic growth
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"Labour and capital of the country acting on it's natural resources produce annually a certain net aggregate of commodities including services of the kinds. This is the true net annual income of the country" is given by
A. Alfred Marshall
B. J. M. Keynes
C. Karl Marx
D. Boulding
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Inflation brings most benefit to which one of the following?
A. Savings bank account holders
B. Government pensioners
C. Debtors
D. Creditors
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Goods X and Y are perfect substitutes. A consumer's indifference curve for these commodities is represented by a/an
A. upward sloping curve which is convex from below
B. upward sloping straight line
C. downward sloping curve which is convex to origin
D. downward sloping straight line
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GNP can be calculated as
A. GDP - Depreciation
B. GDP + Net factor income from abroad
C. GDP - Depreciation + Subsidies
D. Wages + Interest + Rent
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Emperical evidence has shown that due to technological changes and 'learning by doing' trends, the shape of LAC curve has changed from
A. U shaped to L shaped
B. L shaped to U shaped
C. Never changed
D. None of these
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One way the government can induce a monopolist to expand his output is by imposing
A. A price floor that makes the monopolist raise his price
B. A price ceiling that makes the monopo list lower his price
C. A specific tax on the monopolist's output
D. A heavy tax on the monopolist's profits
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