71
Which one of the following statement is not correct?
A)
Marginal cost declines at a faster rate as compared to the average cost
B)
Marginal cost rises at a faster rate as compared to the average cost
C)
Marginal cost equals average cost where average cost is minimum
D)
Average cost equals marginal cost where marginal cost is minimum
Answer & Solution
Answer: Option
D
72
In case of giffens goods, price effect is
A)
negative
B)
zero
C)
positive
D)
proportionate
Answer & Solution
Answer: Option
A
73
Disposable income equals
A)
Personal income - Direct taxes
B)
Consumption + Saving
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
C
74
Which is the best definition of the marginal firm?
A)
The firm with lowest costs
B)
The firm with the large profit
C)
The firm which makes only normal profit
D)
The firm which equates its marginal costs with marginal revenue
Answer & Solution
Answer: Option
C
75
Match the following:
List-I (Information for Pricing Decisions) List-II (Examples)
a. Product Information
1. Product Information
b. Market Information
2. Value of Brand
c. Information at the micro level
3. Used Production Capacity
d. Quality
4. ISO
A)
a-3, b-1, c-4, d-2
B)
a-1, b-2, c-3, d-4
C)
a-1, b-3, c-2, d-4
D)
a-4, b-1, c-2, d-3
Answer & Solution
Answer: Option
B
76
Match the following:
a. Responsiveness of demand to change in price
1. Income elasticity of demand
b. Responsiveness of demand to change in tastes
2. Price elasticity of demand
c. Responsiveness of demand to change in income
3. Cross elasticity of demand
d. Responsiveness of demand to change in price of related goods
4. Taste elasticity of demand
A)
a-4, b-3, c-1, d-2
B)
a-1, b-2, c-3, d-4
C)
a-3, b-4, c-2, d-1
D)
a-2, b-4, c-1, d-3
Answer & Solution
Answer: Option
D
77
Match the items of List-I with the items of List-II and select the answer of correct matching.
List-I List-II
a. Sales Revenue Maximisation
1. Williamson's Model
b. Maximisation of a firm's growth rate
2. Cyert-March Hypothesis
c. Maximisation of Managerial Utility function
3. Baumol's Theory
d. Satisficing behaviour model
4. Marri's Theory
A)
a-3, b-4, c-1, d-2
B)
a-1, b-2, c-4, d-3
C)
a-2, b-3, c-1, d-4
D)
a-4, b-3, c-2, d-1
Answer & Solution
Answer: Option
A
78
The short-run costfunction of a firm is as under: TC = 200 + 5Q + 2Q2 What will be the level of output at which AC and MC will be equal?
A)
20
B)
15
C)
10
D)
5
Answer & Solution
Answer: Option
C
79
Consider the following statements regarding the measurement of rate of inflation.Statement I The rate of inflation is measured on the basis of price indices which are of two kinds-Wholesale Price Index (WPI) and Consumer Price Index (CPl).Statement II A price index is a measure of the average level of prices.Statement III Price index shows the exact price rise or fall of a single good.
A)
Only I
B)
Both I and II
C)
Both II and III
D)
All of the above
Answer & Solution
Answer: Option
B
80
"The opportunity cost of using any factor is what is currently forgone by using it." This definition of opportunity cost is given by
A)
Marshall
B)
Prof. Lipsey
C)
Joan Robinson
D)
Paul A. Samuelson
Answer & Solution
Answer: Option
B
