31
Unitary elasticity of demand refers to
A)
proportionate change in price and quantity
B)
more than proportionate change in price
C)
less than proportionate change in price
D)
None of the above
Answer & Solution
Answer: Option
A
32
Match the following.
List-I List-II
a. Perfectly elastic demand
1. eD = 1
b. Elastic demand
2. eD > 1
c. Inelastic demand
3. eD = 0
d. Perfectly inelastic demand
4. eD = ∞
e. Unitary elastic demand
5. eD < 1
A)
a-2, b-5, c-3, d-1, e-4
B)
a-4, b-2, c-5, d-3, e-1
C)
a-3, b-1, c-5, d-2, e-4
D)
a-1, b-2, c-3, d-4, e-5
Answer & Solution
Answer: Option
B
33
Mixed Economy is termed as co-existence of the following:
A)
Public, private and cooperative sectors
B)
Public and cooperative sectors
C)
Private and Joint sectors
D)
Agricultural and industrial sectors
Answer & Solution
Answer: Option
A
34
Cost theory is the study of total cost contains
A)
Fixed cost
B)
Variable cost
C)
Average cost
D)
Both A and B
Answer & Solution
Answer: Option
D
35
In the long-run, for all monopolistic firms
A)
MR = AR
B)
Price = MR = MC
C)
MR = MC = Price = AC
D)
None of these
Answer & Solution
Answer: Option
D
36
The condition of long period equilibrium for a firm operating under perfect competition is-
A)
AC = MR = MC
B)
MC = MR = AR
C)
AC = MC
D)
AR = MR
Answer & Solution
Answer: Option
A
37
Which of the following statement is correct?
A)
Under perfect competition, a firm determines its price where AR = MR
B)
In perfect competitive industry, a firm is in equilibrium in the short run only when its AC = AR = MR = MC
C)
The short run supply curve has a negative slope
D)
A firm is price taken under perfect competition
Answer & Solution
Answer: Option
D
38
Who among the following gives the final approval to the Indian five year plans?
A)
Federal Cabinet
B)
Planning commission
C)
National development council
D)
Parliamentary committee on planning
Answer & Solution
Answer: Option
C
39
In the market for oranges, a rise in income with other things remaining unchanged, will lead to
A)
an upward movement along the demand curve
B)
an upward movement along the supply curve
C)
an upward shift of the demand curve
D)
a downward shift of the demand curve
Answer & Solution
Answer: Option
C
40
The definition of 'Wantlessness' in economics was given by
A)
Marshall
B)
J. K. Mehta
C)
A. C. Pigou
D)
P. Samuelsan
Answer & Solution
Answer: Option
B
