61
According to Schumpeter the entrepreneur makes economic profit because
A)
He is an innovator
B)
All his risks are insurable
C)
The uncertainity is reduced
D)
Most of his decisions are non-routine
Answer & Solution
Answer: Option
A
62
Total cost is equal to the sum of
A)
Fixed cost + variable cost
B)
Average cost + marginal cost
C)
Raw material cost + labour cost
D)
Transportation expense + installation cost
Answer & Solution
Answer: Option
A
63
The show of impact is a hindrance to the development of low-income countries. It affects
A)
Propensity to consume
B)
The choice of technology
C)
Selection of projects
D)
All of the above
Answer & Solution
Answer: Option
A
64
The pricing strategy which adjusts the basic price to accommodate differences in customers, products and locations is called:
A)
Differentiated pricing
B)
Promotional pricing
C)
Geographical pricing
D)
Price discounts and allowances
Answer & Solution
Answer: Option
A
65
According to Marshall, the basis of consumer surplus is
A)
law of diminishing marginal utility
B)
law of equi-marginal utility
C)
law of proportions
D)
All of the above
Answer & Solution
Answer: Option
A
66
Match the following.
List-I List-II
a. Substitute goods
1. Income effect is positive
b. Complementary goods
2. Tea and coffee
c. Normal goods
3. Car and petrol
d. Inferior goods
4. Income effect is negative
A)
a-2, b-3, c-1, d-4
B)
a-1, b-2, c-3, d-4
C)
a-1, b-4, c-3, d-2
D)
a-4, b-3, c-2, d-1
Answer & Solution
Answer: Option
A
67
A consumer shall be in equilibrium when he has consumed three more commodities, if
A)
$$\frac{{{\text{Value of X}}}}{{{\text{Value of Y}}}} = \frac{{{\text{Value of Y}}}}{{{\text{Value of Z}}}} = \frac{{{\text{Value of Z}}}}{{{\text{Value of X}}}}$$
B)
$$\frac{{{\text{MU of X}}}}{{{\text{Value of X}}}} = \frac{{{\text{MU of Y}}}}{{{\text{Value of Y}}}} = \frac{{{\text{MU of good Z}}}}{{{\text{Value of Z}}}}$$
C)
Value of X = Value of Y = Value of Z
D)
MU of X = MU of Y = MU of Z
Answer & Solution
Answer: Option
B
68
In case of monopolistic equilibrium
A)
AR = MR
B)
AR > MR
C)
AR < MR
D)
TR = TC
Answer & Solution
Answer: Option
B
69
If the price of good Y increase and the price of good X remains the same and in such a situation the demand for X increases then
A)
X and Y will be substitute goods
B)
X and Y will be complementary goods
C)
X and Y will be independent objects/goods
D)
None of the above
Answer & Solution
Answer: Option
A
70
Franchising is a practice of:
A)
Leasing for a prescribed period of time, the right to use firm's successful business model and brand
B)
Selling out a successful business model and brand
C)
Hiring a firm's successful business model and brand
D)
None of the above
Answer & Solution
Answer: Option
A
