21
Match the following.
List-I List-II
a. Consumer surplus
1. Loniet
b. Concept of compensating variation
2. Newman Morgensterm
c. Utility index number
3. Hick
d. Input-output model
4. Marshall
A)
a-1, b-2, c-3, d-4
B)
a-4, b-3, c-2, d-1
C)
a-4, b-2, c-3, d-1
D)
a-1, b-4, c-3, d-2
Answer & Solution
Answer: Option
B
22
Which of the following statement(s) is/are incorrect?
A)
Elastic demand curve is shown by letter demand curve
B)
Perfectly inelastic demand curve will be a horizontal straight line
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
B
23
With reference to angle of incidence, which of the following statements is correct?
A)
Only 1
B)
Only 2
C)
Both 1 and 2
D)
Neither 1 nor 2
Answer & Solution
Answer: Option
C
24
In the context of cost minimisation by a competitive producer, which one of the following is NOT correct?
A)
Marginal rate of technical substitution of the factors equals relative factor price ratio
B)
Ratio of marginal physical productivities of the factors equals the ratio of factor prices
C)
Slope of the isoquant in question equals slope of the budget line
D)
Marginal rate of technical substitution of factors of production divided by relative factor price ratio is zero
Answer & Solution
Answer: Option
D
25
Which of the following pair(s) is/are incorrectly matched?
A)
Demand curve is indeterminate ⇔ Oligopoly
B)
Ed = ∞ ⇔ Monopoly
C)
Demand curve is relatively more elastic ⇔ Monopolistic competition
D)
All of the above
Answer & Solution
Answer: Option
B
26
Which of the following is not a condition for successful price discrimination?
A)
Different elasticity of demand for different consumers
B)
Sellers should be an MNC
C)
Location of markets at distant places
D)
Consumers ignorance and prejudices
Answer & Solution
Answer: Option
B
27
Who among the following is called a business economist?
A)
Company secretary
B)
Liaison officer
C)
Economic adviser
D)
Controller of accounts
Answer & Solution
Answer: Option
C
28
In zero base budget planning
A)
There is no context of previous budget
B)
Working plans are prepared
C)
Operating budget is not prepared
D)
No target is fixed
Answer & Solution
Answer: Option
A
29
Which would be an implicit cost for a firm? The cost
A)
Of worker wages and salaries for the firm
B)
Paid for leasing a building for the firm
C)
Paid for production supplies for the firm
D)
Of wages foregone by the owner of the firm
Answer & Solution
Answer: Option
D
30
The L-shaped isoquant implies that production requires that the input
A)
Cannot be used together
B)
Must be used together in a certain proportion
C)
Are imperfect substitutes
D)
Are perfect substitutes
Answer & Solution
Answer: Option
B
