31
Other things being equal, an increase in supply can be caused by
A)
A rise in the income of the consumer
B)
An improvement in the techniques of production
C)
A rise in the price of the commodity
D)
An increase in the income of the seller
Answer & Solution
Answer: Option
B
32
Under competitive conditions, the industry will be in equilibrium
A)
When each firm is in equilibrium equat ing MC with MR
B)
When all the firms are earning only normal profits
C)
When firms outside have no tendency to enter the industry and those within, have no tendency to leave the industry
D)
When all the three conditions are fulfilled
Answer & Solution
Answer: Option
D
33
If indifference curve has a positive slope, it means
A)
Consumer preferences are unpredictable
B)
Consumer preferences are irrational
C)
X-is a discommodity
D)
Y-is a discommodity
Answer & Solution
Answer: Option
C
34
Price elasticity is computed by
A)
$${e_p} = \frac{{{P_1} - {P_2}}}{{{Q_1}}} \times \frac{{{P_1} + {P_2}}}{{{Q_2}}}$$
B)
$${e_p} = \frac{{\frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{{P_1}}} \times 100$$
C)
$${e_p} = \frac{{\frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{\frac{{{P_2} - {P_1}}}{{{P_1}}}}}$$
D)
$${e_p} = \frac{{\frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{{\text{Product}}}} \times 100$$
Answer & Solution
Answer: Option
C
35
Given:
A)
Rs. 15,860
B)
Rs. 12,000
C)
Rs. 13,000
D)
Rs. 19,000
Answer & Solution
Answer: Option
A
36
Put into chronological order on the basis of development:
A)
1, 3, 4, 2, 5
B)
1, 5, 3, 4, 2
C)
1, 3, 2, 5, 4
D)
1, 2, 3, 4, 5
Answer & Solution
Answer: Option
C
37
Normal profits are considered as
A)
Social costs
B)
Implicit costs
C)
Explicit costs
D)
Both B and C
Answer & Solution
Answer: Option
D
38
The total utility is maximum when
A)
M.U. is zero
B)
M.U. is equal to A.U.
C)
M.U. is the highest
D)
A.U. is the highest
Answer & Solution
Answer: Option
A
39
If AR curve is a falling straight line, MR curve will lie below it in such a way that any line drawn from a point from Y-axis parallel to X-axis to meet the AR curve is intersected by the MR curve
A)
Mid-way
B)
Less than half-way
C)
More than half-way
D)
Anywhere
Answer & Solution
Answer: Option
A
40
Demand policies targeted to reduce the unemployment become ineffective in presence of the following.
A)
Vertical phillips curve
B)
Money illusion and ignorance among workers
C)
Horizontal phillips curve
D)
None of the above
Answer & Solution
Answer: Option
A
