81
When gross investment becomes zero, which of the following prevents national income from becoming zero?
A)
Consumption
B)
Multiplier
C)
Accelerator
D)
None of these
Answer & Solution
Answer: Option
A
82
On the maximum level of satisfaction of good X, the marginal utility of good X will be-
A)
positive
B)
negative
C)
zero
D)
infinity
Answer & Solution
Answer: Option
C
83
Billoo currently spends Rs. 200 per month on long-distance telephone calls. If the telephone company decides to reduce the rate from Rs. 10 a minute to Rs. 5 a minute, then
A)
Whether she spends more or less than Rs. 200 per month depends on whether long-distance telephone calls are a normal good or an inferior good
B)
She will spend less than Rs. 200 per month on long-distance telephone call as the new price is an effective price floor
C)
Whether she spends more or less than Rs. 200 per month on long-distance telephone calls depends on whether her demand is elastic or inelastic
D)
She will spend more than Rs. 200 per month on long-distance telephone calls as her demand has shifted out
Answer & Solution
Answer: Option
C
84
A firm producing a large number of products will follow the pricing strategy known as
A)
Cost-plus pricing
B)
Product-line pricing
C)
Differential pricing
D)
Price leadership
Answer & Solution
Answer: Option
A
85
What is the full form of PDS?
A)
Physical Distribution System
B)
Public Distribution System
C)
Peoples Distribution System
D)
Purposive Distribution System
Answer & Solution
Answer: Option
B
86
The behaviour of Average total cost curve is jointly determined by:
A)
Average Fixed Cost and Average Variable Cost
B)
Total Fixed Cost and Average Variable Cost
C)
Average Fixed Cost and Total Variable Cost
D)
Total Fixed Cost and Total Variable Cost
Answer & Solution
Answer: Option
A
87
Match the following.
List-I List-II
a. Utilitarian approach
1. Marginal rate of substitution
b. Ordinal approach
2. Budget line and indifference curve
c. Price consumption curve
3. U = f(x, y)
d. Consumer equilibrium
4. MRSxy = MRsyx
A)
a-1, b-4, c-3, d-2
B)
a-2, b-3, c-4, d-1
C)
a-3, b-1, c-2, d-4
D)
a-4, b-2, c-1, d-3
Answer & Solution
Answer: Option
C
88
In economics, distribution means
A)
Distribution of labour
B)
Distribution of Income among factors of production
C)
Distribution of capital among the three sectors of economy
D)
Distribution of goods among consumers
Answer & Solution
Answer: Option
B
89
Which of the following is correct?
A)
Fair wage is higher than living wage
B)
Living wage is higher than fair wage
C)
Fair wages, living wages and minimum wages are the same
D)
None of the these
Answer & Solution
Answer: Option
A
90
Match the following.
List-I List-II
a. Decrease in own price
1. Contraction in demand
b. Unfavourable change in taste
2. Extension in demand
c. Increase in own price
3. Decrease in demand
A)
a-2, b-1, c-3
B)
a-2, b-3, c-1
C)
a-1, b-2, c-3
D)
a-3, b-2, c-1
Answer & Solution
Answer: Option
B
