21
Returns to scale involve variations in the quantities of the various factors of production
A)
Both 1 and 2 are correct
B)
1 is correct, but 2 is incorrect
C)
1 is incorrect, but 2 is correct
D)
Neither 1 nor 2
Answer & Solution
Answer: Option
C
22
Income inequalities in a country can be measured by
A)
Lorenz curve
B)
Gini coefficient
C)
Proportion of income received by different size groups
D)
All of the above
Answer & Solution
Answer: Option
D
23
A total cost schedule can be derived from one information given in
A)
an Engle curve
B)
a price consumption curve
C)
an expansion path
D)
an isocost curve
Answer & Solution
Answer: Option
C
24
"The law of diminishing return is merely a matter of logical necessity but the law of increasing return is a matter of empirical fact." The statement comes from
A)
George Stigler
B)
Samuelson
C)
Joan Robinson
D)
Alfred Marshall
Answer & Solution
Answer: Option
C
25
Which of the following equation is correct?
A)
Price effect = Income effect × Substitution effect
B)
Price effect = Substitution effect - Income effect
C)
Price effect = Income effect + Substitution effect
D)
Price effect = Income effect - Substitution effect
Answer & Solution
Answer: Option
C
26
If the marginal output is positive, total output will
A)
increase
B)
decrease
C)
be constant
D)
be zero
Answer & Solution
Answer: Option
A
27
Match the following.
List-I List-II
a. Responsiveness of demand to change in price
1. Income elasticity of demand
b. Responsiveness of demand to change in tastes
2. Price elasticity of demand
c. Responsiveness of demand to change in income
3. Cross elasticity of demand
d. Responsiveness of demand to change in price of related goods
4. Taste elasticity of demand
A)
a-1, b-2, c-3, d-4
B)
a-4, b-3, c-1, d-2
C)
a-3, b-4, c-2, d-1
D)
a-2, b-4, c-1, d-3
Answer & Solution
Answer: Option
D
28
Budget is not related to
A)
Planned events
B)
Covered by the management
C)
Planned practice
D)
Possible events
Answer & Solution
Answer: Option
D
29
After independence, who was appointed by the government of India as the first chairman of the 'national income committee'?
A)
Prof. Mahalanbis
B)
Prof. Cirrus
C)
Prof. Ghosh
D)
Prof. Shah
Answer & Solution
Answer: Option
A
30
The normal LAC curve is influenced by
A)
principle of constant returns to scale
B)
economies and diseconomies of large scale production
C)
principle of diminishing returns
D)
All of the above
Answer & Solution
Answer: Option
B
