71
Which is correct statement about GNP?
A)
GNP at factor cost = GNP at market prices - Indirect taxes + subsidies
B)
Wages + Dividend
C)
GNP = Capital + Assets - Depreciation
D)
GNP at market price = GDP + cost of capital
Answer & Solution
Answer: Option
A
72
From the resource allocation view point, perfect competition is preferable because
A)
There is no restriction on entry and exit of firms
B)
There is a whole variety of output pro duced
C)
The firms operate at excess capacity lavels
D)
There is no idle capacity
Answer & Solution
Answer: Option
D
73
Clark-Wicksteed product exhaustion theorem says that
A)
Given a linearly homogenous production function, the product is exhausted
B)
Total product is exhausted only under laissez-faire
C)
In long-run competitive equilibrium, the total product will be exhausted in rewarding the factors
D)
Total product is exhausted only under conditions of monopoly
Answer & Solution
Answer: Option
A
74
The competition among buyers, each trying to get enough of the product to satisfy his wants tends to move
A)
The equilibrium price
B)
The market price
C)
The consumer's price
D)
All of the above
Answer & Solution
Answer: Option
D
75
Despite differences in cost of production the oligopolists win not vary the prices of their products as per which combination of the following models?
A)
Both 1 and 2
B)
Both 3 and 4
C)
Both 1 and 4
D)
1, 2 and 3
Answer & Solution
Answer: Option
C
76
Given that GNP at market prices = Rs. 1,92,866 crores, Consumption of fixed capital = Rs. 13,371 crores, Net factor income from abroad = Rs. 975 crores, the NDP at market prices will be
A)
Rs. 1,78,520 crore
B)
Rs. 2,07,212 crore
C)
Rs. 1,80,470 crore
D)
Rs. 2,05,262 crore
Answer & Solution
Answer: Option
A
77
The case of a right angled indifference curve occurs when
A)
The two goods are perfect complement
B)
The two goods are normal
C)
The two goods are inferior
D)
The two goods are perfect substitutes
Answer & Solution
Answer: Option
A
78
Which of the following formula explains the term average revenue?
A)
AR = MR × Number of units produced
B)
$${\text{AR}} = \frac{{{\text{Total Revenue}}}}{{{\text{Number of units produced}}}}$$
C)
$${\text{AR}} = \frac{{{\text{Total Units Produced}}}}{{{\text{Total Revenue}}}}$$
D)
AR = TR - MR
Answer & Solution
Answer: Option
B
79
Of the following, which one corresponds to fixed cost?
A)
Transportation charges
B)
Payments for raw material
C)
Labour costs
D)
Insurance premium on property
Answer & Solution
Answer: Option
D
80
Economists who developed the indifference curve analysis are
A)
Hicks and Allen
B)
Hicks and Marshall
C)
Samuelson and Robinson
D)
Hicks and Robinson
Answer & Solution
Answer: Option
A
