21
The important characteristics of a mixed economic system are
A)
co-existence of public and private sector
B)
use of market-mechanism in the private sector
C)
use of economic planning
D)
government regulation and control of the economy
E)
all of the above
Answer & Solution
Answer: Option
E
22
Why does the demand curve downward to the right?
A)
Substitute effect
B)
Income effect
C)
Change in the number of buyers
D)
All of these
Answer & Solution
Answer: Option
D
23
Exception of the law of demand is:
A)
Diminishing marginal utility
B)
Giffen paradox
C)
Different uses of products
D)
Price of substitute goods
Answer & Solution
Answer: Option
B
24
National Income can be measured by
A)
Expenditure Method
B)
Income Method
C)
Production Method
D)
All of the above
Answer & Solution
Answer: Option
D
25
What is a fiscal deficit?
A)
It is a gap between the values of the exports and imports
B)
It is a gap between exports and imports minus external borrowings
C)
It is a gap between total expenditure and total receipts of the government
D)
It is a gap between total receipts minus external borrowing
Answer & Solution
Answer: Option
C
26
The elasticity of demand at the mid point on a straight demand line is
A)
Zero
B)
Equal to one
C)
More than one
D)
Less than one
Answer & Solution
Answer: Option
B
27
Expansion path in the theory of production corresponds to
A)
Engel's curve
B)
Price consumption curve
C)
Income consumption curve
D)
Budget constraint
Answer & Solution
Answer: Option
B
28
Which of the following best defines price discrimination?
A)
Charging different prices on the basis of race
B)
Charging different prices for goods with different costs of production
C)
Charging different prices based on cost of service differences
D)
Selling a certain product of given quality and cost per unit at different prices to different buyers
Answer & Solution
Answer: Option
D
29
Match the following.
List-I List-II
a. Substitute goods
1. Negative cross elasticity
b. Complementary goods
2. Low price elasticity
c. Giffen goods
3. Positive cross elasticity
d. High income group, consumption goods
4. Positive price elasticity
A)
a-3, b-4, c-2, d-1
B)
a-3, b-1, c-4, d-2
C)
a-2, b-3, c-1, d-4
D)
a-1, b-2, c-3, d-4
Answer & Solution
Answer: Option
B
30
The demand curve faced by a monopolistically competitive firm is
A)
Perfectly elastic
B)
Elastic
C)
Unit elastic
D)
Inelastic
Answer & Solution
Answer: Option
B
