11
Match the following.
List-I List-II
a. Normal demand curve
1. Vertical straight line
b. Income consumption curve
2. Downwards to right
c. Inelastic demand curve
3. Infinity
d. Cross elasticity of demand between two perfect substitute will be
4. Upwards to the right
A)
a-2, b-4, c-1, d-3
B)
a-1, b-2, c-3, d-4
C)
a-4, b-1, c-3, d-2
D)
a-3, b-2, c-1, d-4
Answer & Solution
Answer: Option
A
12
Indifference curve is the combination of two goods that are
A)
Complementary goods
B)
Substitute goods
C)
Not related with each other
D)
Related to two different people
Answer & Solution
Answer: Option
B
13
Match the following.
List-I (Forms of Market)List-II (Features)
a. Perfect competition
1. High degree of interdependence
b. Monopolistic competition
2. Homogeneous product
c. Monopoly
3. Product differentiation
d. Oligopoly
4. One seller and large number of buyers
A)
a-4, b-3, c-2, d-1
B)
a-2, b-3, c-4, d-1
C)
a-3, b-1, c-4, d-2
D)
a-2, b-4, c-1, d-3
Answer & Solution
Answer: Option
B
14
In the case of a short-run production function, the factor ratio remains
A)
Constant
B)
Variable
C)
Either constant or variable
D)
None of the above
Answer & Solution
Answer: Option
B
15
The cross-price elasticity between two products is found to be half. From this, we know that the two product are
A)
Normal
B)
Inferior
C)
Necessities
D)
Complements
Answer & Solution
Answer: Option
D
16
A natural monopoly is a market situation, in which
A)
all firms sell natural resources
B)
a single firm supplies natural resources to an entire industry
C)
a single firm can supply the market output more efficiently than many firms
D)
None of the above
Answer & Solution
Answer: Option
B
17
The G. E. Business Model is explained on which one of the following parameters?
A)
Market Attractiveness and Business Position
B)
Business Attractiveness and Market Position
C)
Industry Growth rate and Company's Market share
D)
Company's Growth rate and Industry's Position
Answer & Solution
Answer: Option
A
18
Using TR and TC a profit maximising firm will be in equilibrium at a point where the
A)
gap between the two is small
B)
gap between the two is greatest
C)
gap does not exist
D)
None of the above
Answer & Solution
Answer: Option
B
19
The nature of cross price elasticity of demand in case of complementary products will be
A)
positive
B)
negative
C)
both A and B
D)
zero
Answer & Solution
Answer: Option
B
20
Assertion (A) Marginal cost and differential cost do not convey the same meaning in all the circumstances.Reason (R) Differential cost increases or decreases due to change in fixed cost.
A)
Both (A) and (R) are true and (R) is the correct explanation of (A)
B)
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
C)
(A) is true, but (R) is false
D)
(A) is false, but (R) is true
Answer & Solution
Answer: Option
C
