11
Which one of the following is represented by a rectangular hyperbola?
A)
Average fixed cost curve
B)
Average variable cost curve
C)
Production potential curve
D)
Extension path
Answer & Solution
Answer: Option
A
12
The demand curve for a commodity is generally drawn on the assumption that
A)
the commodity has no substitutes
B)
tastes, income and all other prices remain constant
C)
the average household consists of two persons
D)
purchases of the commodity are made by a free market
Answer & Solution
Answer: Option
B
13
The total transaction of various goods and services by a country in a span of one year from different countries of the world is called:
A)
Current account
B)
Balance of trade
C)
Capital account
D)
Balance of payments
Answer & Solution
Answer: Option
D
14
Total utility of a commodity is measured by which price of that commodity?
A)
Value in use
B)
Value in exchange
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
A
15
The first five year plan of India was based on
A)
Mahalanovis model
B)
Feldman model
C)
Harrod-Domar model
D)
Nehan-Mahalanovis model
Answer & Solution
Answer: Option
C
16
The larger the co-efficient of price elasticity of demand for a product, the
A)
Larger the resulting price change for a given increase in supply
B)
More rapid the rate at which the marginal utility of that product diminishes
C)
Less competitive will be the industry supplying that product
D)
Smaller the resulting price change for a given increase in supply
Answer & Solution
Answer: Option
D
17
A change in the supply of a commodity along with same supply curve may occur due to
A)
Change in the price of the commodity
B)
Change in the prices of related goods
C)
Change in the future expectations of the price of the good
D)
Change in the cost of inputs
Answer & Solution
Answer: Option
A
18
With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is
A)
200 units
B)
400 units
C)
800 units
D)
1,600 units
Answer & Solution
Answer: Option
C
19
Match the following.
List-I List-II
a. Increase in demand
1. Leftward shift of the demand curve
b. Extension of demand
2. Upward shift of the demand curve
c. Decrease in demand
3. Upward movement on the demand curve
d. Contraction of demand
4. Downward movement on the demand curve
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
20
The following are the steps in designing the market driven distribution:
A)
1, 4, 2, 5, 3, 6
B)
1, 2, 3, 5, 4, 6
C)
1, 3, 4, 5, 2, 6
D)
2, 3, 4, 5, 6, 1
Answer & Solution
Answer: Option
A
