41
In which year was the process of economic liberalization practically started in India?
A)
1951
B)
1991
C)
1976
D)
1997
Answer & Solution
Answer: Option
B
42
In a free economy the national income is Y (C, I, G, X, M) means consumption, investment, government expenditure and total exports and total imports respectively
A)
Y = C + I + G + X
B)
Y = C + I + G - X + M
C)
Y = C + I + G + (X - M)
D)
Y = C + I - G + X - M
Answer & Solution
Answer: Option
C
43
Which of the following is the correct measure about the monopoly power of the firm?
A)
AR = AC
B)
MR = MC
C)
AR = MC
D)
None of these
Answer & Solution
Answer: Option
B
44
Relation between AR, MR and elasticity of demand can be established by the formula
A)
$$MR = AR\left( {1 - \frac{1}{e}} \right)$$
B)
$$AR = MR\left( {\frac{{e - 1}}{e}} \right)$$
C)
$$MR = AR\left( {\frac{1}{{e - 1}}} \right)$$
D)
$$AR = \left( {\frac{{MR}}{e}} \right)$$
Answer & Solution
Answer: Option
A
45
The indifference curves show-
A)
how much a consumer can spend on X plus Y goods
B)
higher order preference-combinations on the upper most segments
C)
combinations of two goods at different points about which a consumer is neutral
D)
more is consumed at lower prices
Answer & Solution
Answer: Option
C
46
When a perfectly competitive industry is in long-run equilibrium, all firms in the industry
A)
Earn zero economic profits
B)
Produce a level of output where short-run marginal cost is equal to the short-run average total cost
C)
Produce a level of output where long-run marginal cost is equal to long-run average cost
D)
All of the above
Answer & Solution
Answer: Option
D
47
If the change in demand of a commodity is in proportion to the change in its price, then it is called
A)
Unit elasticity
B)
Less than unit elasticity
C)
Perfectly elastic
D)
Perfectly inelastic
Answer & Solution
Answer: Option
A
48
Demand for a commodity depends on the relative price of its
A)
substitute goods
B)
abnormal goods
C)
inferior goods
D)
None of the above
Answer & Solution
Answer: Option
A
49
Gossen's second law states that
A)
consumer maximises his total pleasure, when satisfaction gained from marginal units of all commodities is the same
B)
consumers gain satisfaction only when $$\frac{{{P_x}}}{{{P_y}}} = \frac{{M{U_x}}}{{M{U_y}}}$$
C)
when more units are consumed, marginal utility diminishes
D)
All of the above
Answer & Solution
Answer: Option
A
50
Profits are the reward for-
A)
bearing uncertainty
B)
bearing risks
C)
parting with time preference of consumption
D)
avoiding and absorbing non-insurable risks and uncertainties
Answer & Solution
Answer: Option
B
