41
Assertion (A): The long run cost curve is L-shaped rather than U-shaped.Reason (R): The new techniques of production of large plants reduce the total costs per unit of output.
A)
Both A and R are true and R is the correct explanation of A
B)
Both A and R are true, but R is not a correct explanation of A
C)
A is true, but R is false
D)
A is false, but R is true
Answer & Solution
Answer: Option
A
42
Utility derived from consumption of an additional unit of a good is called
A)
Total utility
B)
Marginal utility
C)
Additional utility
D)
Derived utility
Answer & Solution
Answer: Option
B
43
In India, Census is conducted by
A)
National Sample Survey Organisation
B)
Central Statistical Organisation
C)
Registrar General and Census Commissioner
D)
None of the above
Answer & Solution
Answer: Option
C
44
If the cross price elasticity of demand between two goods is negative, then the two goods are
A)
unrelated goods
B)
substitutes
C)
complements
D)
normal goods
Answer & Solution
Answer: Option
C
45
Match the following.
List-I List-II
a. Joint demand
1. Tea and Coffee
b. Competitive demand
2. Domestic consumers and industrial users
c. Composite demand
3. Sugar and molasses
d. Joint supply
4. Lipton tea and Brooke Bond tea
e. Competitive supply
5. Car and Petrol
A)
a-5, b-3, c-4, d-1, e-2
B)
a-4, b-1, c-3, d-2, e-5
C)
a-5, b-1, c-2, d-3, e-4
D)
a-3, b-2, c-4, d-1, e-5
Answer & Solution
Answer: Option
C
46
A shutdown point is a point where the price is
A)
Less than variable cost
B)
Equal to variable cost
C)
Equal to average cost
D)
None of the above
Answer & Solution
Answer: Option
C
47
In general, the demand for necessities is relatively
A)
inelastic
B)
elastic
C)
unity
D)
None of these
Answer & Solution
Answer: Option
A
48
Product variation refers to
A)
an activity undertaken by a firm to increase demand
B)
a problem with quality control that tends to decrease demand
C)
an activity undertaken by a firm to make demand more price inelastic
D)
None of the above
Answer & Solution
Answer: Option
A
49
When in order to satisfy a given want, two or more goods are needed in combination, these goods are called
A)
complementary goods
B)
substitute goods
C)
inferior goods
D)
abnormal goods
Answer & Solution
Answer: Option
A
50
According to Lionel Robbins definition of economics, "Economics is a science which . . . . . . . ."
A)
studies human behaviour
B)
relationship between ends and scares resources
C)
scarce means have alternate uses
D)
All of the above
Answer & Solution
Answer: Option
D
