81
Which of the following statement is incorrect?
A)
The demand function specifies the relationship between quantity demanded and all the variables that determine demand
B)
The demand curve is that part of the demand function, that expresses the relation between price charged for a product and the quantity demanded cetirus paribus
C)
Elasticity can be measured in two different ways called point elasticity and arc elasticity
D)
Arc elasticity measures the average elasticity at a point on the arc of the demand curve
Answer & Solution
Answer: Option
D
82
The movement along an indifference curve reflecting the substitution of cheaper products for more expensive ones is
A)
supply effect
B)
utility effect
C)
a substitution effect
D)
an income effect
Answer & Solution
Answer: Option
C
83
If a single monopolist enjoying internal economies of scale is replaced by a large number of producers operating under perfect competition, it may be said that
A)
Both price and output will rise
B)
Price will increase and output will fall
C)
Price will increase but the effect on output will be indeterminate
D)
Output will fall but the effect on price will be indeterminate
Answer & Solution
Answer: Option
C
84
The supply curve for the short-run competitive firm is the same as
A)
Average variable cost curve
B)
Marginal cost curve
C)
That part of the MC curve which equals or is greater than AVC
D)
Average total cost curve
Answer & Solution
Answer: Option
C
85
Match the following:
List-I (Principles) List-II (Subject matter)
a. Kaldor's Theory
1. Distribution
b. Say's Law
2. Employment
c. Domar model
3. Growth
d. Neo-classical Analysis
4. Golden Rule of Accumulation
A)
a-1, b-2, c-3, d-4
B)
a-4, b-3, c-2, d-1
C)
a-3, b-1, c-2, d-4
D)
a-3, b-4, c-2, d-1
Answer & Solution
Answer: Option
A
86
Price effect in indifference curve analysis arises
A)
When the consumer becomes either better off or worse off because price change is not compensated by income change
B)
When the consumer is better off due to a change in income and price
C)
When income and price change
D)
None of the above
Answer & Solution
Answer: Option
A
87
The price which a consumer would be willing to pay for a commodity equals to his
A)
Average utility
B)
Marginal utility
C)
Total utility
D)
Does not have any relation to any one of these
Answer & Solution
Answer: Option
D
88
The demand function yield price function is given below. The price for market A will be: (Pa = 32 - 2Qa )
A)
24
B)
28
C)
25
D)
30
Answer & Solution
Answer: Option
A
A)
What is left to the entrepreneur after he has paid all his expenses
B)
The extra output obtained from employing an additional unit of a factor
C)
What is produced when all factors of production are employed at optimum efficiency
D)
Annual output of the most efficient firm in the industry
Answer & Solution
Answer: Option
B
90
If the demand for using the Noida express way is given by Q = 40,000 - 2,500P
A)
At P = Rs. 6 and Q = 14,000, demand is price inelastic
B)
At P = Rs. 7 and Q = 16,500
C)
At P = Rs. 4 and Q = 9,500, demand is price elastic
D)
All of the above
Answer & Solution
Answer: Option
C
