11
The point of inflexion refers to that point on the total physical product curve from where onwards the . . . . . . . . of the total physical product changes.
A)
Curvature
B)
Design
C)
Patterns
D)
None of the above
Answer & Solution
Answer: Option
A
12
The indifference curve cannot intersect each other due to the
A)
Transitivity rule
B)
Optimal rule
C)
Non-satiety rule
D)
Preference rule
Answer & Solution
Answer: Option
D
13
The marginal utility at the point of satiety will be
A)
Negative
B)
Positive
C)
Maximum
D)
Zero
Answer & Solution
Answer: Option
D
14
If the capital production ratio in an economy is 5.2, what be the savings income ratio to increase the national income by 6.2%?
A)
1.00%
B)
32.24%
C)
11.4%
D)
1..19%
Answer & Solution
Answer: Option
B
15
Match the following.
List-I List-II
a. Indifference curve
1. Slopes downward to the right
b. Demand curve
2. P = AR = MR = d
c. Perfect competition
3. Oligopoly
d. Price leadership
4. Convex to the origin
A)
a-2, b-3, c-4, d-1
B)
a-3, b-4, c-1, d-2
C)
a-4, b-1, c-2, d-3
D)
a-1, b-2, c-3, d-4
Answer & Solution
Answer: Option
C
16
A firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?
A)
The firm will earn accounting and economic profits
B)
The firm will face accounting and economic losses
C)
The firm will face an accounting loss but earn economic profits
D)
The firm may earn accounting profits but will face economic losses
Answer & Solution
Answer: Option
D
17
By total consumer surplus, economists mean (in P-Q space)
A)
the area of the triangle formed by the demand curve, the price axis and the equilibrium price line
B)
the area between the average revenue and marginal revenue curves
C)
the difference between the maximum price the consumer is willing to pay for a good (vertical intercept of demand curve) and the minimum price the producer is willing to sell at (vertical intercept of supply curve)
D)
Both A and C
Answer & Solution
Answer: Option
A
18
How is the revenue marginal productivity calculated under marginal productivity theory?
A)
By computing the total physical output
B)
Finding the total revenue
C)
By computing marginal physical productivity
D)
Marginal physical productivity multiplied by the value of the commodity i.e., price
Answer & Solution
Answer: Option
D
19
Match the following.
List-I List-II
a. Economic profit
1. Total revenue explicit cost
b. Accounting profit
2. Buyers and sellers exchanging
c. Collusion/Cartel
3. Total revenue - Total cost
d. Market
4. Oligopoly
A)
a-3, b-1, c-4, d-2
B)
a-1, b-2, c-3, d-4
C)
a-4, b-3, c-2, d-1
D)
a-2, b-4, c-1, d-3
Answer & Solution
Answer: Option
A
20
For a perfectly competitive firm
A)
total revenue is a straight line
B)
price is greater than marginal revenue
C)
price equals total revenue
D)
price equals total cost
Answer & Solution
Answer: Option
A
