91
Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.
A)
Mrs. Robinson
B)
Prof. Leftwitch
C)
Prof. Adam Smith
D)
Prof. Marshall
Answer & Solution
Answer: Option
B
92
$$\frac{{\% {\text{ Change in quantity demanded of good }}x}}{{\% {\text{ Change in the price of good }}y{\text{ }}}}$$
A)
cross price elasticity of demand
B)
income elasticity of demand
C)
price elasticity of supply
D)
cost elasticity of supply
Answer & Solution
Answer: Option
A
93
Match the following.
List-I (Concepts)List-II (Features)
a. Utility
1. MU tends to decline as consumption of the commodity increases
b. Total utility
2. It is a want satisfying power of a good
c. Marginal utility
3. Sum total of utility derived from the consumption of all the units of a commodity
d. Law of diminishing marginal utility
4. Additional utility an account of the consumption of an additional unit of a commodity
A)
a-4, b-1, c-2, d-3
B)
a-2, b-4, c-1, d-3
C)
a-2, b-3, c-4, d-1
D)
a-1, b-2, c-3, d-4
Answer & Solution
Answer: Option
C
94
Goods 'A' and 'B' are complementary goods. The cost of resources used in the production of A decreases. As a result,
A)
The equilibrium price of B will fall and the equilibrium price of A will rise
B)
The equilibrium price of both A and B will rise
C)
The equilibrium price of B will rise and the equilibrium price of A will fall
D)
The equilibrium prices of both A and B will fall
Answer & Solution
Answer: Option
C
95
A fall in the price of a commodity leads to
A)
a shift in demand
B)
a fall in demand
C)
a rise in consumers real income
D)
a fall in the consumers real income
Answer & Solution
Answer: Option
C
96
Which of the following shapes of demand curve shows elasticity equal to unity at all points?
A)
a rectangular hyperbola
B)
a perpendicular
C)
a parabola
D)
a straight line
Answer & Solution
Answer: Option
A
97
Which of the following best expresses the law of diminishing marginal utility?
A)
The more a person consumes a product, the smaller becomes the utility, which he receives from its consumption
B)
The more a person consumes a, product, the smaller becomes the additional utility, which he receives as a result of consuming an additional unit of the product
C)
The less a person consumes a product, the smaller becomes the utility, which he receives from its consumption
D)
The less a person consumes a product, the smaller becomes the additional utility which he receives as a result of consuming an additional unit of the product
Answer & Solution
Answer: Option
B
98
What is the increase in total cost due to production of the last unit of production called?
A)
Total cost
B)
Average cost
C)
Differential cost
D)
Marginal cost
Answer & Solution
Answer: Option
D
99
When the income elasticity of demand is greater than unity, the commodity is
A)
a necessity
B)
a luxury
C)
an inferior good
D)
a non-related good
Answer & Solution
Answer: Option
B
100
In perfect competition in the long run there will be no
A)
normal profits
B)
super normal profits
C)
production
D)
costs
Answer & Solution
Answer: Option
B
