Match the items of List-II with the items of List-I and find the correct matching. The items relate to economies of scale/scope.
| List-I | List-II |
| a. Economies of scale | 1. Arise with lower average costs of manufacturing a product when two complementary products are produced by a single firm |
| b. Internal economies | 2. Mean lowering of costs of production by producing in bulk |
| c. External economies | 3. Arise when cost per unit depends on size of the firm |
| d. Economies of scope | 4. Arise when cost per unit depends on the size of the industry, not the firm |
A. a-2, b-4, c-1, d-3
B. a-1, b-2, c-3, d-4
C. a-2, b-3, c-4, d-1
D. a-4, b-3, c-2, d-1
Answer: Option C
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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