31
The law of demand states that if other things remain same
A)
There is always a direct relationship between the price and demand
B)
There is always an inverse relationship between price and demand
C)
There is always a direct relationship between desire and demand
D)
There is no relationship between price and demand
Answer & Solution
Answer: Option
B
32
Average revenue curve will not touch X axis because it cannot be
A)
Positive
B)
Zero
C)
Negative
D)
None of these
Answer & Solution
Answer: Option
B
33
Who was the author of 'Value and Capital'?
A)
R. G. D. Allen
B)
Edwin Cannon
C)
Irving Fisher
D)
J. R. Hicks
Answer & Solution
Answer: Option
D
34
Firms in perfect competition face a
A)
perfectly elastic demand curve
B)
perfectly inelastic demand curve
C)
perfectly elastic supply curve
D)
perfectly inelastic supply curve
Answer & Solution
Answer: Option
A
35
When a firm produces 400 units, its total cost is Rs. 6,000 and the total cost of producing 410 units is Rs. 7,500. If so, then its marginal cost will be
A)
Rs. 1,500
B)
Rs. 3,750
C)
Rs. 150
D)
None of these
Answer & Solution
Answer: Option
C
36
When a monopolist is able to sell each separate unit of the output at a different price according to the pocket of the customer, he is applying
A)
First-degree price discrimination
B)
Second-degree price discrimination
C)
Third-degree price discrimination
D)
None of the above
Answer & Solution
Answer: Option
B
37
Which of the following describes what happens to a consumer's budget line if the consumer's budget increases? The budget line
A)
Become steeper
B)
Shifts farther away from the origin of the graph
C)
Does not change
D)
Becomes horizontal
Answer & Solution
Answer: Option
B
38
Match the following.
List-I List-II
a. Cross demand is the change in the quantity demanded of a given commodity in response to the
1. Relationship between the price of a commodity and the quantity demanded
b. The elasticity of demand for product will be higher
2. Change in the price of another commodity
c. The law of demand indicates
3. When price falls demand rises
d. The law of demand states
4. The more available are substitutes for that product
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
39
When the cross elasticity of price of demand between two goods is zero, then such goods are said to be
A)
Independent goods
B)
Luxury goods
C)
Substitute goods
D)
Complementary goods
Answer & Solution
Answer: Option
A
40
The responsiveness of demand to a change in price is measured by
A)
The Law of Demand
B)
The Law of Supply
C)
Equilibrium Price
D)
Elasticity of Demand
Answer & Solution
Answer: Option
D
