21
"The increasing returns to scale occurs because larger scale provides greater specialisation to various factors" according to
Answer & Solution
Answer: Option
C
22
When the APL is positive but declining, the MPL could be
Answer & Solution
Answer: Option
D
23
Match the following:
| List-I (Theory) |
List-II (Relation) |
| a. Say's Law of market |
1. Employment |
| b. Keynes's Psychological Law |
2. Consumption |
| c. Paradox of thrift |
3. Saving |
| d. Marshall |
4. Population |
Answer & Solution
Answer: Option
A
24
Given the total cost (TC) as 20,000 + 6Q, the firm sells its output for a fixed price of Rs. 18.5. The break-even quantity (Q) would be
Answer & Solution
Answer: Option
A
25
Which one is not the method of demand forecasting?
Answer & Solution
Answer: Option
D
26
Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is
Answer & Solution
Answer: Option
D
27
The implication of the kinked demand curve is reflected in a discontinuity in the
Answer & Solution
Answer: Option
A
28
Imagine a graph showing production possibilities. What does an outward shift of the production possibilities curve indicate?
Answer & Solution
Answer: Option
C
29
If ATC curve is a rising straight line, then as output expands, MC curve will
Answer & Solution
Answer: Option
C
30
In a typical demand schedule, quantity demanded varies
Answer & Solution
Answer: Option
C
