A)
The net output of commodities and services flowing during a year from the country's productivity system in the hands of the ultimate consumers
B)
The net interest
C)
The net dividend
D)
The net depreciation
Answer & Solution
Answer: Option
A
72
Match the following:
a. Various combinations of two commodities that a consumer can purchase
1. Indifference map
b. Various combinations of two commodities that give consumer equal satisfaction
2. Indifference curve
c. A set of indifference curves
3. Budget line
d. Point of tangency of a budget line and an indifference curve
4. Consumer's equilibrium
A)
a-2, b-3, c-4, d-1
B)
a-4, b-3, c-2, d-1
C)
a-1, b-2, c-4, d-3
D)
a-3, b-2, c-1, d-4
Answer & Solution
Answer: Option
D
73
Your firm is selling 1,000 units at a price of Rs. 10 per unit. The firm's total explicit cost is Rs. 8,000. The firm's implicit cost is Rs. 1,000 and the opportunity cost of your time in managing the firm is Rs. 1,000. In the above situation, which one of the following is true?
A)
Accounting profit is 0
B)
Economic profit is less than the accounting profit
C)
Marginal cost is Rs. 1,000
D)
Economic profit is Rs. 1,000
Answer & Solution
Answer: Option
B
74
Which of the following statements is correct or more nearly correct?
A)
If the price of a commodity falls, its value relative to other goods does not change
B)
Value has nothing to do with price
C)
An increase in the price of commodity represents a fall in its value
D)
The price of a good is its value measured in terms of money
Answer & Solution
Answer: Option
D
75
In case of an inferior commodity, the income elasticity of demand is
A)
zero
B)
negative
C)
unitary
D)
positive
Answer & Solution
Answer: Option
B
76
An increase in injections into the economy may lead to
A)
an outward shift of aggregate supply and cost push inflation
B)
an outward shift of aggregate demand and demand pull inflation
C)
an outward shift of aggregate supply and demand pull inflation
D)
an outward shift of aggregate demand and cost push inflation
Answer & Solution
Answer: Option
B
77
Which of the following occupations should be included under the heading of "Primary production"?
A)
1 and 3
B)
1 and 2
C)
1 only
D)
1, 2, 3 and 4
Answer & Solution
Answer: Option
D
78
Increase in demand due to decrease in price of that commodity is termed as
A)
increment in demand
B)
increase in demand
C)
extension of demand
D)
change of demand
Answer & Solution
Answer: Option
C
79
While analysing Marshall's measure of consumer's surplus one assumes
A)
Monopoly
B)
Perfect competition
C)
Imperfect competition
D)
Monopsony
Answer & Solution
Answer: Option
B
A)
Is always either positive or zero
B)
Is always positive
C)
Can be positive, negative or zero
D)
Is always negative
Answer & Solution
Answer: Option
C
