Managerial Economics

61

Consider the following types of income.
1. Personal income
2. Private income
3. Disposable income
4. National income
The correct sequence in descending order of their magnitude is

A) 4, 2, 1, 3 B) 4, 2, 3, 1 C) 2, 4, 3, 1 D) 2, 4, 1, 3

Discuss

Answer & Solution

Answer: Option A

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62

Which one of the following is identical with multiplant monopolist?

A) Cartel aiming at joint profit maximisation B) Market sharing cartels C) Oligopoly with low-cost firm as leader D) Oligopoly with dominant firm as leader

Discuss

Answer & Solution

Answer: Option A

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63

If a straight line demand curve is tangent to a curvilinear demand curve, the elasticity of the two demand curves at the points of tangency is

A) The same B) Can be the same or different C) Different D) Depends on the location of the point of tangency

Discuss

Answer & Solution

Answer: Option A

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64

A firm practising price discrimination will be

A) Buying only from firms selling in bulk at a distance B) Buying in cheapest and selling in the dearest markets C) Charging different prices in different mar kets for a product D) Charging different prices for different qualities of a product

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Answer & Solution

Answer: Option C

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65

The supply function, would shoot downward and to the right if the MC of all the firms in a perfectly competitive industry were to

A) No change B) Increase C) Decrease D) None of these

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Answer & Solution

Answer: Option B

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66

Match the items of List-I with the items of List-II and find the correct combination.

List-I (Market Structure)	List-II (Nature of industry where prevalent)
a. Perfect competition	1. Aluminium and passenger cars
b. Oligopoly	2. Public utilities like Telephones and Electricity
c. Monopoly	3. Manufacturing: T.V. Sets, Refrigerators
d. Monopolistic competition	4. Farm Products: Grains

A) a-1, b-2, c-3, d-4 B) a-4, b-1, c-2, d-3 C) a-3, b-4, c-1, d-2 D) a-2, b-3, c-4, d-1

Discuss

Answer & Solution

Answer: Option B

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67

National income equilibrium is not at the level where

A) aggregate investment equals aggregate savings B) aggregate expenditure equals aggregate income C) inflationary and detlationary gaps are absent D) aggregate consumption is constant

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Answer & Solution

Answer: Option D

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68

Indifference curve is downward sloping from left to right since more X and less Y gives

A) less satisfaction B) no satisfaction C) more satisfaction D) equal satisfaction

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Answer & Solution

Answer: Option D

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69

The concept of indifference curve analysis was given scientific touch by

A) Slutsky in 1915 B) F. Y. Edgeworth in 1881 C) Irving Fisher in 1982 D) Alfred Marshall in 1921

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Answer & Solution

Answer: Option B

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70

The third degree price discrimination may be suitably practised between:

A) Cost of transportation B) Transport barriers C) Two or more markets D) All of the above

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Answer & Solution

Answer: Option D

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