Which one of the following is not the characteristic of capitalism?
A. Individuals and associations behave with economic motive of maximising their profit with least sacrifice or cost
B. The country's major means of production are either owned by the Government or their use is controlled by the Government
C. Producers, consumers and employees compete among themselves, as the resources and opportunities are limited
D. Price, the invisible hand, plays a predominant role in the flow of the factors of production and consumption
Answer: Option B
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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