102-Economics Analysis for Buisness Decision

VIM102

Marks: 539

Duration: 20.0 Minutes

Name : ______________________________________________________

Roll No : ______________________________________________________

Total : ______________________________________________________

Date : ______________________ Signature : ______________________

Q1) Macroeconomics provides an exploration to the functioning of an economy in Marks : 1.0Id: 38752

1) General 2) Particular

3) Partial 4) Global

Q2) cost measures the sacrifice made for taking a decision Marks : 1.0Id: 44833

1) Opportunity cost 2) Marginal cost

Explanation:

3) Average cost 4) Economic cost

Q3) Which of the following is incorrect? Marks : 1.0Id: 44908

1) Perfectly elastic – E= ∞ 2) perfectly inelastic E= 1

3) unitary inelastic E = 1 4) relatively inelastic E < 1

Explanation:

Q4) If marginal cost equals to average total cost Marks : 1.0Id: 44963

1) Average total cost is falling 2) Average total cost is rising

3) Average total cost is maximized 4) Average total cost is minimized

Q5) In the short period the national income is determined by Marks : 1.0Id: 45120

1) Aggregate demand and price 2) Aggregate supply and price

3) Aggregate demand and aggregate supply 4) Aggregate Demand only

Explanation:

Q6) EBIT or Operating profit equals Marks : 1.0Id: 45090

1) Sales revenue + cost of goods sold + allexpenses except for interest and taxes

2) Sales revenue cost of goods sold + allexpenses except for interest and taxes

3) Sales revenue all expenses except forinterest and taxes

4) Sales revenue cost of goods sold + allexpenses with interest and taxes

Q7) Economists make assumptions Marks : 1.0Id: 45142

1) To diminish the chance of wrong answers. 2) To make certain that all necessary variablesare included.

Explanation:

3) Because all scientists make assumptions. 4) To make the world easier to understand.

Q8) Kinked demand curve is the characteristic of – Marks : 1.0Id: 44973

1) Oligopoly 2) Monopoly

3) Perfect competition 4) Monopolistic competition

Explanation:

Q9) According to Robbins economics is Marks : 1.0Id: 38772

1) Positive and ethical science 2) Positive and unethical science

3) Normative and ethical science 4) Normative and unethical science

Q10) Quantity demanded is always expressed at a given – Marks : 1.0Id: 44887

1) Income 2) Price

3) Value 4) Supply

Explanation:

Q11) Scarcity is a condition that exists when: Marks : 1.0Id: 45017

1) there is a fixed supply of resources. 2) there is a large demand for a product.

3) resources are not able to meet the entiredemand for a product.

4) the supply is equal to demand.

Q12) Monopoly firm , in long run earn Marks : 1.0Id: 38796

Explanation:

1) Normal profit 2) Abnormal profit

3) Normal loss 4) Abnormal loss

Q13) Under method of forecasting firm can obtain the information from door todoor survey

Marks : 1.0Id: 44933

1) Consumers survey 2) Complete enumeration survey

3) Delphi technique 4) Sample survey

Explanation:

Q14) A firm under has a regular tendency to show excess capacity Marks : 1.0Id: 44982

1) Oligopoly 2) Duopoly

Q15) The period of 12th five year plan is Marks : 1.0Id: 44881

1) 20122017 2) 20122016

3) 20102015 4) 20072012

Explanation:

Q16) The government wants to reduce the consumption of electricity by 5%. The priceelasticity of demand for electricity is 0.4. The government should

Marks : 1.0Id: 38763

1) raise the price of electricity by .08%. 2) lower the price of electricity by .4%.

3) raise the price of electricity by 12.5%. 4) raise the price of electricity by 2%.

Q17) If anything flowing from the circular flow is termed as Marks : 1.0Id: 38759

1) Leakage 2) Injection

3) Flowing 4) Flying

Explanation:

Q18) Money is: Marks : 1.0Id: 45125

1) Consumer good 2) Capital good

3) Producer good 4) Neither of them

Q19) The basis of micro economic is Marks : 1.0

Explanation:

Id: 44830

1) Price mechanism 2) Full employment

3) National income 4) Price stability

Q20) How prices are determined in the free market? Marks : 1.0Id: 38792

1) With the help of demand and supply 2) Price and supply

3) Supply and price 4) Managers

Explanation:

Q21) When people have very little time to respond to price changes, demand becomes: Marks : 1.0Id: 45183

1) More elastic 2) Less elastic

3) Unitary elastic 4) Time does not affect price elasticity

Q22) In case of increase in demand, the demand curve : Marks : 1.0Id: 45180

1) Shifts leftwards. 2) Shifts rightwards.

3) Will have upward slope 4) Will be horizontal.

Explanation:

Q23) In free enterprise economy basic economic problems are solved with the help of Marks : 1.0Id: 44837

1) Price mechanism 2) Demand and supply interaction

3) Government 4) Central planning department

Q24) Due to a scarcity of resources, Marks : 1.0Id: 45139

1) Every society must undertake central planning 2) The government must decide how to allocateavailable resources

Explanation:

3) Some members of each society must live inpoverty

4) Every society must choose among competinguses of available resources

Q25) The elasticity of supply is defined as the responsiveness of the quantity supplied of agoods to a change in

Marks : 1.0Id: 44949

1) One of the variable factor on which supplydepends

2) Its income

3) Its price

4) Its cost

Explanation:

Q26) Cross elasticity in monopoly is – Marks : 1.0Id: 44990

1) One 2) Positive

3) Zero 4) Negative

Q27) In India duopoly exists in the following industry: Marks : 1.0Id: 45235

1) Heavy Commercial Vehicles 2) Soft Drinks

3) Oral Care Products 4) Detergents

Explanation:

Q28) Which one of the following would be an example of market failure requiringgovernment interference?

Marks : 1.0Id: 45024

1) Competition among businesses drives downthe price of calculators so low that manyproducers go bankrupt

2) Negative externalities are generated bybusiness production polluting theenvironment.

3) Mr. Bhati is offered 50 million per year to playbasketball.

4) Consumers are influenced by advertisingconvincing them to buy products they do notneed.

Explanation:

is the example of mixed economy Marks : 1.0Id: 44838

1) India 2) USA

3) UK 4) Erstwhile USSR

Q30) If the demand curve is parallel to x axis, then elasticity of demand is Marks : 1.0Id: 44941

1) Zero 2) One

3) Infinite 4) Greater than one

Explanation:

Q31) Infinite price elasticity is the characteristic of – Marks : 1.0Id: 44976

1) Perfect competition 2) Monopoly

Q32) The profit which the firm must earn if they are remain in the industry is called Marks : 1.0Id: 45119

1) Marginal profit 2) Normal profit

3) Equi marginal profit 4) Dividend Procuring

Explanation:

Q33) Which of the alternatives to the modern theory of the firm holds that managersattempt to meet some goal that is defined in terms of a specified level of sales,profits, growth or market share?

Marks : 1.0Id: 45156

1) Sales maximization model 2) Management utility maximization model

3) Satisficing model 4) Profit maximization model

Q34) Under inductive method the logic proceed from Marks : 1.0Id: 44872

1) General to particular 2) Positive to normative

Explanation:

3) Normative to positive 4) Particular to general

Q35) Microeconomics is concerned with: Marks : 1.0Id: 45131

1) The economy as a whole 2) The electronics industry

3) The study of individual economic behavior 4) The interactions within the entire economy

Explanation:

Q36) If the crossprice elasticity between two goods is negative, the two goods are likelyto be:

Marks : 1.0Id: 45212

1) Substitutes 2) Complements

3) Necessities 4) Luxuries

Q37) Demand for a normal product may shift outwards if: Marks : 1.0Id: 45227

1) Price decreases 2) The price of a substitute rises

3) The price of a complement rises 4) Income falls

Explanation:

Q38) In a free market economy, when consumers increase their purchase of a good andthe level of exceeds then price tends to rise.

Marks : 1.0Id: 44873

1) Demand, supply 2) Supply, demand

3) Prices, demand 4) Profits, supply

Q39) Which statement is true of the basic economic problem? Marks : 1.0Id: 45086

1) The problem will exist as long as resourcesare limited and desires are Unlimited.

2) The problem exists only in less developedcountries.

3) The problem will disappear as production 4) The advancement of technology will cause the

Explanation:

expands. problem to disappear

Q40) Economic cost = cost+ cost. Marks : 1.0Id: 44846

1) Accounting , Explicit 2) Implicit , explicit

3) Accounting, outlay 4) Explicit, imputed

Explanation:

Q41) Market with one buyer and one seller is called Marks : 1.0Id: 45000

1) Monospony 2) Monopoly

3) Bilateral monopoly 4) None

Q42) Which of the following cost is not recorded in the books of account? Marks : 1.0Id: 44834

1) Direct cost 2) Indirect cost

3) Opportunity cost 4) Explicit cost

Explanation:

Q43) Marginal revenue is equal to price for which one of the following types of marketstructure?

Marks : 1.0Id: 45246

1) Monopoly 2) Perfect Competition

3) Monopolistic 4) Oligopoly

Q44) Err:509 Marks : 1.0Id: 44816

1) GAAT 2) IMF

3) IBRD 4) None of These

Explanation:

Q45) Which among the followings means the cost of foregone opportunities? Marks : 1.0Id: 38747

1) Discounting Principle 2) Opportunity Cost

3) Inventory Management 4) Principle of Time Perspective

Q46) is the probable measurement of uncertainty Marks : 1.0Id: 44835

Explanation:

3) Risk 4) Insurance

Q47) Demand for a commodity is defined as Marks : 1.0Id: 45218

1) Want for the commodity 2) Quantity demanded for a particular commoditybacked by willingness to pay.

3) Desire for the commodity 4) Quantity demanded

Explanation:

Q48) The Law of Supply states that when the price of a commodity rises, the quantitysupplied .

Marks : 1.0Id: 45202

1) Rises. 2) Falls.

3) Does not rise. 4) Does not fall

Q49) Managerial economics basically Marks : 1.0Id: 38736

1) Positive Economics 2) Normative Economics

3) Positive and Normative both 4) Negative Economics

Explanation:

Q50) Homogeneity of the product is a characteristic feature of Marks : 1.0Id: 45217

1) Monopoly 2) Perfect competition

3) Monopolistic competition 4) Oligopoly

Q51) The coordinating mechanism in the economy of the price system was described byAdam Smith as :

Marks : 1.0Id: 45016

1) Visible hand 2) Invisible hand

3) Total Revenue 4) Profits

Explanation:

Q52) Full form of FDI is Marks : 1.0Id: 44879

1) Fast direct investment 2) Foreign direct investment

3) Foreign division in India 4) Food direct Investment

Q53) Under perfect competition, price of the product Marks : 1.0Id: 45002

Explanation:

1) Can be controlled 2) Cannot be controlled

3) Can be controlled with in certain limit 4) Controlled by firm only

Q54) The value of elasticity of demand ranges from Marks : 1.0Id: 45280

1) Zero to one 2) One to infinity

3) Always zero 4) Zero to infinity

Explanation:

Q55) Efficient allocation of resources is likely to be achieved under Marks : 1.0Id: 44995

1) Monopoly 2) Monopolistic competition

3) Perfect competition 4) Oligopoly

Q56) The most basic assumption upon which the foundation of economics is based is that Marks : 1.0Id: 45075

1) continued technological improvement isnecessary to stimulate essential economicgrowth.

2) private ownership of resources is necessaryfor maximum economic growth

3) the market system is the best of all possibleproduction systems

4) society's resources are limited and unable to

Explanation:

satisfy unlimited wants

Q57) Economics is Marks : 1.0Id: 44818

1) Science 2) Art

3) Both a and b 4) None of these

Explanation:

Q58) Price elasticity of cigarette is Marks : 1.0Id: 44914

1) Less than one 2) More than one

3) One 4) Relatively elastic

Q59) Value maximization theory fails to address the problem of: Marks : 1.0Id: 45161

1) Risk 2) Uncertainty

3) Sluggish growth 4) Selfserving management

Explanation:

Q60) Which of the following curve is horizontal? Marks : 1.0Id: 44960

1) Variable cost 2) Fixed cost

3) Marginal cost 4) Total cost

Q61) Interdependencies is the feature of Marks : 1.0Id: 45164

Explanation:

Q62) As per law of demand the relationship between price and demand is Marks : 1.0Id: 45213

1) Direct. 2) positive.

3) Proportionate. 4) Inverse.

Q63) If consumer always spend 15% of their income on foods, then income elasticity ofdemand for food is

Marks : 1.0Id: 38768

1) 1.15 2) 0.15

Explanation:

3) 1 4) Impossible to determine

Q64) If labour has less elastic demand than capital, wages would be ______ than interest Marks : 1.0Id: 45251

1) Less 2) More

3) Equal 4) None

Explanation:

Q65) Economic problem arises mainly due to specific reasons Marks : 1.0Id: 45107

1) Human wants are unlimited and to satisfyhuman wants are scarce

2) Human wants only

3) Enormous raising population only

4) Unlimited mobility of workers

Q66) Economic progress Marks : 1.0Id: 45122

1) Reflects that people are achieving higherincome levels and living _x000D_ standards.

2) Requires that individuals work longer hours.

3) Implies scarcity is no longer a problem.

4) Indicates income levels are higher eventhough environmental and health _x000D_conditions have worsened.

Explanation:

Q67) The sensitivity of the change in quantity demanded to a change in price is called Marks : 1.0Id: 38778

1) Income elasticity. 2) Crosselasticity. Price elasticity of demand.Coefficient of elasticity.

3) Price elasticity of demand. 4) Coefficient of elasticity.

Explanation:

Q68) The scarcity or scientific or choice making definition of economics is stated by Marks : 1.0Id: 44821

1) Adam smith 2) Samuelson

3) Robbins 4) Scumpeter

Q69) Income elasticity of demand for diamonds would be : Marks : 1.0Id: 45252

1) 1 2) 0

3) >1 4) <1

Explanation:

Q70) Opportunity cost of machine producing only one product is Marks : 1.0Id: 45282

1) Low 2) High

3) Infinite 4) Medium

Q71) Opportunity cost is best defined as: Marks : 1.0Id: 45066

1) How an economy suffers when in recession? 2) The cost of decision expressed as next bestalternative

3) The cost of decision expressed in monetaryterms

4) The financial costs association with theproduction of goods and services.

Explanation:

Q72) A firm operating under conditions of perfect competition can: Marks : 1.0Id: 45181

1) Determine the price of its product. 2) Promote the sales through effectiveadvertisement.

3) Determine only the size of its output. 4) Capture the market by cutting down the price.

Q73) In which type of economy can each producer allocate his resources based on the Marks : 1.0

Explanation:

demand? Id: 45020

1) Mixed economy 2) Market economy

3) Command economy 4) Regulated economy

Q74) Suppose a firm is selling 5 units of the output at the price of Rs.15 per unit. Now if itwants to sell 6 units instead of 5 units and there by the price of the product falls toRs.14 then the marginal revenue will be

Marks : 1.0Id: 38801

1) 14 2) 10

3) 15 4) 9

Explanation:

Q75) The study of agreements of economy is done through: Marks : 1.0Id: 45117

1) Micro Economics 2) Macro Economics

3) Not Micro but with Macro 4) Theory of population

Q76) If two goods are perfect substitutes for each other , the cross elasticity between themis –

Marks : 1.0Id: 44921

1) Infinite 2) Zero

3) Positive 4) Negative

Explanation:

Q77) A business is said to be making _______ if its revenues exceed the accounting cost Marks : 1.0Id: 45097

1) An Accounting Profit 2) A Normal Profit

3) An Economic Profit 4) An Abnormal profit

Q78) Which is the method of measuring GDP? Marks : 1.0Id: 45079

1) Income method 2) Productivity method

Explanation:

3) Product persuasion method 4) Cumulative method

Q79) The discrimination pricing that attempts to take away the entire consumer surplus iscalled degree price discrimination.

Marks : 1.0Id: 44998

1) First 2) Second

3) Third 4) Fourth

Explanation:

Q80) Which among the following are known as the features of monopoly? Marks : 1.0Id: 38794

1) Large number of buyers 2) Large number of sellers

3) Single seller 4) Price taker

Q81) Which of the following is the example of complementary goods? Marks : 1.0Id: 44890

1) Tea and coffee 2) Tea and sugar

3) Ball pen and ink pen 4) Shoes and gold

Explanation:

Q82) In perfect competitive industries are Marks : 1.0Id: 38790

1) Price taker 2) Price maker

3) Price determinate 4) Price regulator

Q83) Profit is the motive of – Marks : 1.0Id: 44839

1) Mixed economy 2) Socialistic economy

3) Capitalistic economy 4) Centrally planned economy

Explanation:

Q84) Marginal cost change due to change in Marks : 1.0Id: 44961

1) Total cost 2) Average cost

3) Variable cost 4) Quantity of output

Q85) Inequality of income is the characteristic of – Marks : 1.0Id: 44841

Explanation:

1) Capitalist economy 2) Socialistic economy

3) Mixed economy 4) Planning economy

Q86) Suppose a firm decides to increase its output. This may involve a rise in its total costby 30% and with an increase in output by 15% , then incremental cost is

Marks : 1.0Id: 44869

1) 2% 2) 3%

3) ½ % 4) None of these

Explanation:

Q87) _________ is the study of economic actions of individuals and small groups ofindividuals.

Marks : 1.0Id: 45037

1) MicroEconomics 2) MacroEconomics

3) Managerial Economics 4) Business Economics

Q88) Economists who are concerned about the behavior of individual households, firmsand industries are studying:

Marks : 1.0Id: 45070

1) Nanoeconomics 2) Microeconomics

3) Macroeconomics 4) Neoeconomics

Explanation:

Q89) When consumer’s income increases, demand for an inferior good . Marks : 1.0Id: 45170

1) Increases. 2) Decreases.

3) Does not change. 4) Changes.

Q90) For core food items demand is ________ _______. Marks : 1.0Id: 45169

1) More elastic. 2) Less elastic.

3) Unitary elastic. 4) Not elastic.

Explanation:

Q91) Gross profit includes Marks : 1.0Id: 45089

1) Overhead expenses + interest expense + taxesand extraordinary items

2) Overhead expenses + interest expense taxesand extraordinary items

3) Overhead expenses interest expense taxesand extraordinary items

4) Overhead expenses interest expense + taxesand extraordinary items

Explanation:

Q92) In India to some degree perfect competition exists in the following industry: Marks : 1.0Id: 45237

1) Cement 2) Soaps and detergents

3) Rice Farming 4) Dental Care Products

Q93) What type of relationship exists between the price and quantity demanded? Marks : 1.0Id: 45260

1) Direct. 2) Inverse.

3) Positive. 4) Normative.

Explanation:

Q94) Economics includes the following economic activity Marks : 1.0Id: 45285

1) Production 2) Consumption

3) Exchange 4) All of the above

Q95) NNP at market price will be – Marks : 1.0Id: 45084

Explanation:

1) GNP + cost of capital 2) GNP + cash

3) GNP at market prices – depreciation 4) GNP + dividend

Q96) is the probable measurement of uncertainty Marks : 1.0Id: 45288

3) Risk 4) Insurance

Explanation:

Q97) Opportunity cost include Marks : 1.0Id: 44870

1) Implicit cost 2) Explicit cost

3) Both a and b 4) Neither a nor b

Q98) According to law of demand other things being equal , if the price of commodity fallsthe quantity demanded of it will…………………………

Marks : 1.0Id: 44891

1) Rise 2) Decrease

3) Increase 4) Fall

Explanation:

Q99) From society's point of view, the economic function of profits and losses is to: Marks : 1.0Id: 45032

1) Promote the equal distribution of real assetsand wealth

2) Achieve full employment and price levelstability

3) Contribute to a more equal distribution ofincome

4) Reallocate resources from less desired tomore desired uses

Q100) General theory of employment, interest, and money propounded by Marks : 1.0Id: 44862

1) Keynes 2) Marshall

Explanation:

3) Marx 4) Knight

Q101) For the price taking firm – Marks : 1.0Id: 44971

1) MR < price 2) MR = price

3) MR > price 4) Indeterminate relation between price and MR

Explanation:

Q102) It is the difference between total revenue and total economic cost Marks : 1.0Id: 45148

1) Accounting Profit 2) Net Profit

3) Gross Profit 4) Economic Profit

Q103) Which best describes a demand curve? Marks : 1.0Id: 45225

1) The quantity consumers would like to buy inan ideal world

2) The quantity consumers are willing to sell

3) The quantity consumers are willing and able tobuy at each and every income all other thingsunchanged

4) The quantity consumers are willing and able tobuy at each and every price all other thingsunchanged

Explanation:

Q104) In the case of a straight line demand curve meeting the two axes , the price elasticityof demand at the midpoint of the line would be –

Marks : 1.0Id: 44910

1) Zero 2) One

3) Greater than one 4) Less than one

Q105) Positive aspects of economics is concerned with Marks : 1.0Id: 44826

Explanation:

1) What ought to be 2) What is

3) Ethical 4) Why economics

Q106) In law of demand, which is dependent and which is independent variable? Marks : 1.0Id: 38771

1) Price is dependent demand is independent 2) Price is independent demand is dependentvariable

3) Price and demand both dependent 4) Price and demand both independent

Explanation:

Q107) The circular flow of goods and incomes show the Marks : 1.0Id: 45138

1) Wages and salaries 2) Firms and households

3) Income and money 4) Goods and services

Q108) In perfectly competitive market a firm in the long run operates at Marks : 1.0Id: 45255

1) AC=MC 2) AR=MR

3) MR=MC 4) P=AR=MR=AC=MC

Explanation:

Q109) Value judgment possible in Marks : 1.0Id: 44828

1) Positive science 2) Normative science

3) Deductive method 4) Inductive method

Q110) The commodity whose demand is associated with the name of Sir Robert Giffen? Marks : 1.0Id: 44938

1) Necessary goods 2) Luxury goods

Explanation:

3) Inferior goods 4) Ordinary goods

Q111) Unemployment means that: Marks : 1.0Id: 38738

1) there is excess demand in the labour market. 2) at the going wage rate, there are people whowant to work but cannot find work

3) people are not willing to work at the goingwage rate.

4) there are some people who will not work at thegoing wage rate.

Explanation:

Q112) Which market both AR = MR? Marks : 1.0Id: 38791

1) Competitive 2) Monopoly

3) Monopolistic 4) Oligopoly

Q113) A decrease in the supply of a good will tend to cause: Marks : 1.0Id: 45197

1) an increase in the equilibrium price andquantity

2) a decrease in the equilibrium price andquantity

3) a decrease in the equilibrium price and anincrease in the equilibrium quantity

4) an increase in the equilibrium price and adecrease in the equilibrium quantity

Explanation:

Q114) Graphical presentation of demand schedule Marks : 1.0Id: 38762

1) Demand schedule 2) Demand curve

3) Demand law 4) Law of demand

Q115) “Economics is the enquiry into the nature and causes of wealth of nations” statedby

Marks : 1.0Id: 44822

1) Adam smith 2) Robbins

Explanation:

3) Amertya sen 4) Friderman

Q116) Cross elasticity between shoes and coldrink is – Marks : 1.0Id: 44920

1) Infinite 2) Greater than zero

3) Greater than zero 4) Zero

Explanation:

Q117) If there is small change in price causes , an infinite change in demand, than elasticityof demand is

Marks : 1.0Id: 38780

1) Equal to zero. 2) Greater than one.

3) Less than one. 4) Equal to infinite

Q118) In case of monopoly, demand curve is same as Marks : 1.0Id: 44996

1) MR curve 2) AR curve

3) AC curve 4) MC curve

Explanation:

Q119) Economic goods are goods which: Marks : 1.0Id: 45068

1) Obey the laws of economics 2) Are scarce and limited in supply

3) Are tangible 4) Are intangible

Q120) The income elasticity of demand: Marks : 1.0Id: 45184

1) is positive for an inferior good 2) is negative for a normal good

3) is negative for an inferior good 4) is zero for an inferior good

Explanation:

Q121) Income flow is also known as Marks : 1.0Id: 44864

1) Product flow 2) Money flow

3) Profit flow 4) Cash flow

Q122) Variation in demand means_x000D_ _x000D_ Marks : 1.0Id: 45287

1) Change in demand when pricechanges_x000D_

2) Change in demand when price is constant_x000D_ _x000D_

Explanation:

3) Change in demand when other factor changes 4) All of the above

Q123) The father of economics is Marks : 1.0Id: 44819

1) Adam smith 2) Marshall

3) Keynes 4) Samuelson

Explanation:

Q124) The opportunity cost of a machine which can be produce only one product is Marks : 1.0Id: 44866

1) Low 2) Infinite

3) One 4) Large

Q125) Economic profit refers to minus all relevant costs, both explicit and implicit. Marks : 1.0Id: 45051

1) Profit 2) Cost

3) Expenses 4) Revenue

Explanation:

Q126) Law related to monopoly is – Marks : 1.0Id: 44999

1) FERA 2) MRTP

3) IDRA 4) FEMA

Q127) The two basic markets shown by the simple circular flow model are Marks : 1.0Id: 45063

1) Capital goods and consumer goods 2) Free and controlled.

3) Product and resource 4) Household and business

Explanation:

Q128) NNP equals to Marks : 1.0Id: 45082

1) GNP – dividend 2) GNP – depreciation

3) GNP – gold 4) GNP – cost of capital

Q129) Identify fixed cost from the following – Marks : 1.0Id: 44959

Explanation:

1) Labour cost 2) Electricity bill

3) Salary of watchman 4) Cost of raw material

Q130) Flows of the factor of production and the goods and services between the differentsector is

Marks : 1.0Id: 44865

1) Real flow 2) Money flow

3) Cash flow 4) Product flow

Explanation:

Q131) Micro economic is considered as Marks : 1.0Id: 44861

1) Static analysis 2) Dynamic analysis

3) Changing analysis 4) None of these

Q132) In a freemarket economy the allocation of resources is determined by Marks : 1.0Id: 45060

1) Votes taken by consumers 2) A central planning authority

3) By consumer preferences 4) The level of profits of firms

Explanation:

Q133) deals with aggregate economic Marks : 1.0Id: 44829

1) Micro economic 2) Macro economic

Q134) The demand curve shows Marks : 1.0Id: 38767

1) the maximum amount consumers are willing topay for particular units of a good

2) the minimum amount consumers are willing topay for particular units of a good

Explanation:

3) the average amount consumers are willing topay for particular units of a good

4) that consumers want to pay the lowest price

Q135) Scarcity can be avoided by making: Marks : 1.0Id: 45069

1) needs unlimited 2) resources limited

3) wants and needs limited 4) wants unlimited

Explanation:

Q136) Cost is also known as explicit cost. Marks : 1.0Id: 44844

1) Opportunity 2) Accounting

3) Outlay 4) Sunk

Q137) All of the following are the characteristic of perfect competition except Marks : 1.0Id: 44967

1) Uniform price 2) Large no. of buyers and sellers

3) Differentiated goods 4) Absence of transport coat

Explanation:

Q138) What is the shape of demand curve faced by firm under perfect competition? Marks : 1.0Id: 44968

1) Horizontal 2) Vertical

3) Positively sloped 4) Negatively sloped

Q139) Economics should be neutral between ends stated by – Marks : 1.0Id: 44827

Explanation:

1) Robbins 2) Marshall

3) Pigou 4) Adam smith

Q140) The relationship between quantity supplied and price is _____ and the relationshipbetween quantity demanded and price is _____.

Marks : 1.0Id: 45268

1) direct, inverse 2) inverse, direct

3) inverse, inverse 4) direct, direct

Explanation:

Q141) In a__________the decisions of a central planner are replaced by the decisions ofmillions of firms and households.

Marks : 1.0Id: 45101

1) Market economy 2) Business economy

3) Social economy 4) Plant economy

Q142) Economics is a science which deals with human wants and their satisfaction. Marks : 1.0Id: 45052

1) Social 2) Political

3) Natural 4) Physical

Explanation:

Q143) Which Of The Following Economic Indicators Show Adverse Effect On The StockMarket?

Marks : 1.0Id: 45130

1) Low Domestic Saving 2) High Foreign Exchange Production

3) High Industrial Production 4) Low Interest Rate

Q144) The sensitivity of the change in quantity consumed of one product to a change in theprice of a related product is called

Marks : 1.0Id: 38781

1) Crosselasticity. 2) Substitute elasticity.

3) Complementary elasticity. 4) Price elasticity of demand.

Explanation:

Q145) Law of supply states Marks : 1.0Id: 38787

1) Inverse relation between price and demand 2) Inverse relation between price and supply

3) Direct relation between price and demand 4) Direct relation between price and supply

Q146) Adam Smith claims that for an economy to achieve mutual gains from voluntary Marks : 1.0

Explanation:

exchange it requires Id: 45023

1) consumers being considerate of their fellowman

2) businesses maintaining good will in theirbusiness relations.

3) self interested behavior by consumers andbusinesses.

4) government interference with the market.

Q147) A market with one seller is an example of: Marks : 1.0Id: 45206

1) Monotony 2) Oligopoly

3) Monopoly 4) Duopoly

Explanation:

Q148) The word ‘economics’ comes from the Greek word for: Marks : 1.0Id: 45039

1) Environment 2) One who manages a household

3) One who participates in the market 4) Conservation

Q149) When the price of a Giffen good falls, its quantity demanded . Marks : 1.0Id: 45171

Explanation:

1) Rises. 2) Falls.

3) Does not change. 4) Changes.

Q150) Select the group that best represents the basic factors of production. Marks : 1.0Id: 45057

1) land, labor, capital, technology 2) land, natural resources, labor, capital

3) land, labor, capital, entrepreneurship 4) land, labor, money, management skills

Explanation:

Q151) Firms which engage in satisficing behavior are likely to be Marks : 1.0Id: 45159

1) Leading firms in their industry 2) Innovative, risktakers, performingsatisfactorily

3) Conservative, riskaverse and performingadequately

4) Growth maximizes

Q152) All of the following are determinants of supply EXCEPT: Marks : 1.0Id: 45210

1) Price 2) Objectives of the firm

3) Income levels 4) Level of technology

Explanation:

Q153) Profits arise because the entrepreneurs introduce innovations stated by Marks : 1.0Id: 44863

1) Schumpeter 2) Knight

3) Keynes 4) Robbins

Q154) In a free market Marks : 1.0Id: 45134

1) Governments intervene 2) Governments plan production

Explanation:

3) Governments interfere 4) Prices adjust to reconcile scarcity and desires

Q155) Perfect competition, in long run firms earn Marks : 1.0Id: 38795

1) Normal profit 2) Abnormal profit

3) Normal loss 4) Abnormal loss

Explanation:

Q156) Liberalization refers to Marks : 1.0Id: 44884

1) Integration of the world economy 2) Transfer asset from public sector to privatesector

3) Relaxation of previous government restriction 4) All of these

Q157) SEBI stands for Marks : 1.0Id: 44877

1) Securities and exchange board of India 2) Saving and earning board of India

3) Stock exchange board of India 4) Strategic and economic board of India

Explanation:

Q158) Rational decisionmaking under conditions of scarcity requires individuals to: Marks : 1.0Id: 45177

1) place a monetary value on everything they do. 2) know the prices of all goods they mightpossibly buy.

3) understand that they have to make choices, ortradeoffs

4) be constantly alert to price reductions ondesired products.

Q159) Which of the following laws states that the more a consumer consumes of a product,the less is the utility he derives from the additional consumption?

Marks : 1.0Id: 45261

1) Law of equilibriumMarginal utility. 2) Law of ordinal utility.

Explanation:

3) Law of cardinal utility. 4) Law of diminishing marginal utility.

Q160) The PrincipalAgent Problem arises when… Marks : 1.0Id: 45031

1) The principal and the agent have differentobjectives

2) The principal cannot decide whether the firmshould seek to maximize the expected futureprofits of the firm or maximize the price forwhich the firm can be sold

3) The principal cannot enforce the contract withthe agent or finds it too costly to monitor theagent

4) Both a and c

Explanation:

Q161) If an increase in consumer income leads to a decrease in the demand for good x,then good x is:

Marks : 1.0Id: 45196

1) a substitute 2) a complementary good

3) a inferior good 4) a normal good

Q162) What are the two sectors in two sector model of ‘circular flow’? Marks : 1.0Id: 38739

1) Household sector & Business Sector 2) Household sector & Government Sector

3) Household sector & Foreign Sector 4) Household sector & Private Sector

Explanation:

Q163) If the supply of water bottled decreases , the equilibrium price and theequilibrium quantity

Marks : 1.0Id: 44952

1) Increases, decreases 2) Decreases, decreases

3) Decreases, increases 4) Increases, increases

Q164) What does monopolistic competition have in common with monopoly? Marks : 1.0Id: 45277

1) Mutual interdependence 2) The ability to collude with respect to price

Explanation:

3) A large number of firms 4) A downwardsloping demand curve

Q165) Marginal utility analysis assumes: Marks : 1.0Id: 45112

1) That utility can be measured 2) That utility cannot be quantified

3) The utility is static 4) None of the above

Explanation:

Q166) Per capita income is associated with Marks : 1.0Id: 44831

1) Micro economic 2) Macro economic

3) Positive science 4) Mixed economy

Q167) The shape of demand curve in case of perfectly elastic is Marks : 1.0Id: 44906

1) Vertical 2) Downward sloping

3) Horizontal 4) Upward sloping

Explanation:

Q168) Large no. of buyers and sellers are the characteristic of – Marks : 1.0Id: 44977

Q169) Perfect competition is a market situation characterized by Marks : 1.0Id: 45215

Explanation:

1) A single seller 2) Limited sellers

3) A large number of sellers 4) A few sellers

Q170) If the demand is more than supply , then the pressure on price will be – Marks : 1.0Id: 44953

1) Upward 2) Downward

3) Constant 4) None of the above

Explanation:

Q171) The governor of Reserve bank of India is Marks : 1.0Id: 44883

1) D. subbarao 2) Raghuram govind rajan

3) Bimal jalan 4) None of these

Q172) Elasticity is when the percentage change in quantity demanded is lessthan the percentage change in price.

Marks : 1.0Id: 44916

3) Greater than zero 4) Less than zero

Explanation:

Q173) Price elasticity of salt is Marks : 1.0Id: 44907

1) Perfectly elastic 2) Unitary elastic

3) inelastic 4) relatively elastic

Q174) Which of the following features is NOT seen in imperfect competition? Marks : 1.0Id: 45178

1) Product differentiation 2) Price wars

3) All goods are homogeneous 4) All goods are heterogeneous

Explanation:

Q175) RBI stands for Marks : 1.0Id: 44876

1) Reverse bank of India 2) River bank of India

3) Reserve bank of investment 4) None of these

Q176) Market demand is aggregation of individual demand Marks : 1.0

Explanation:

Id: 38761

1) Vertically 2) Horizontally

3) Parallel 4) Diagonally

Q177) In perfect competitive firms are Marks : 1.0Id: 38789

1) Price taker 2) Price maker

3) Price determinate 4) Price regulator

Explanation:

Q178) The interaction of individuals and firms in a market can be described as a of money, goods and services and resources through product and factor markets.

Marks : 1.0Id: 45050

1) Constant Flow 2) Stable Flow

3) Circular Flow 4) Regular Flow

Q179) Accounting profit is arrived at when explicit costs are subtracted from Marks : 1.0Id: 45145

1) Total revenue 2) Explicit cost

3) Implicit cost 4) Total cost

Explanation:

Q180) With a favourable government policy towards agriculture and good monsoonconditions, the agricultural supply will in spite of average price of agriculturalgoods remaining constant.

Marks : 1.0Id: 45175

1) Increase. 2) Decrease.

3) Not change. 4) Either increase or decrease

Q181) Which among the following is economics theory/principles? Marks : 1.0Id: 38745

1) Law of diminishing marginal utility 2) Newton’s law

Explanation:

3) E= MC2 4) Theory of gravity

Q182) The price elasticity of demand for hamburger is – Marks : 1.0Id: 44903

1) The change in quantity demanded ofhamburger when hamburger increases by 30paisa per rupee

2) The percentage increase in the quantitydemanded of hamburger when the price ofhamburger falls by 1 per cent per rupee

3) The increase in the price of the hamburgerwhen the price of hamburger falls by 10 percent per rupee

4) The decrease in the quantity demanded ofhamburger when the price of the hamburgerfalls by 1 per cent per rupee

Explanation:

Q183) The "law of demand" is illustrated by a Marks : 1.0Id: 45247

1) movement along the demand curve. 2) leftward shift of the demand curve.

3) rightward shift of the demand curve. 4) Both answers A and B are correct.

Q184) There is no difference between firm and industry in Marks : 1.0Id: 44980

Explanation:

Q185) What is the ‘Economic Problem’? Marks : 1.0Id: 45038

1) The problem that high exchange rates deterexports

2) Having high levels of unemployment

3) Matching endless wants with limited resources

4) The fact that economies often go intorecession

Q186) A firm enjoys maximum control over the price of its product under Marks : 1.0

Explanation:

Id: 44992

3) Oligopoly 4) Monopolistic competition

Q187) Factors of production are Marks : 1.0Id: 45151

1) Inputs into the production process. 2) Weather, social, and political conditions thataffect production.

3) The physical relationships between economicinputs and outputs.

4) The mathematical calculations firms make todetermine production.

Explanation:

Q188) Which of the following statements regarding elasticity of demand is TRUE? Marks : 1.0Id: 45243

1) Elasticity always has a negative value 2) Elasticity can be positive or negative

3) Elasticity always has a positive value 4) Elasticity can never be zero

Q189) National income is Marks : 1.0Id: 45077

1) The net output of commodities and servicesflowing during a year from the countriesproductivity system

2) The net interest

3) The dividend

Explanation:

4) The net depreciation

Q190) Inflation refers to: Marks : 1.0Id: 45126

1) Rising Prices 2) Reduces Money Supply

3) Increased demand 4) Increased supply

Explanation:

Q191) A decrease in income should: Marks : 1.0Id: 45228

1) Shift demand for an inferior product inwards 2) Shift demand for an inferior product outwards

3) Shift supply for an inferior product outwards 4) Shift supply for an inferior product inwards

Q192) Elasticity of demand is greater than 1 implies that demand is . Marks : 1.0Id: 45221

1) Elastic. 2) Inelastic.

3) Relatively elastic. 4) Relatively inelastic.

Explanation:

Q193) Single buyer is the characteristic of – Marks : 1.0Id: 44978

3) Duopoly 4) None of these

Q194) In monopolistic competition, firms achieve some degree of market power: Marks : 1.0Id: 45186

1) Because of barriers to entry into the industry 2) Because of barriers to exit from the industry

3) By producing differentiated products 4) By virtue of size alone

Explanation:

Q195) A fall in price: Marks : 1.0Id: 45226

1) Will cause an inward shift of demand 2) Will cause an outward shift of supply

3) Leads to a movement along a demand curve 4) Leads to a higher level of production

Q196) “Money is what Money does “ , was the definition of Money given by : Marks : 1.0Id: 45124

1) Walker 2) Robbinson

Explanation:

3) Pigou 4) Coulborn

Q197) What is the nature of supply curve? Marks : 1.0Id: 38788

1) Positive slope 2) Negative slope

3) Natural slope 4) Downward slope

Explanation:

Q198) Because of the Law of Supply, supply curves: Marks : 1.0Id: 45209

1) slope downward. 2) slope upwards.

3) are perfectly vertical. 4) are perfectly horizontal.

Q199) In economics financial year is called: Marks : 1.0Id: 45041

1) Accounting Year 2) Financial Year

3) Fiscal Year 4) Monetary Year

Explanation:

Q200) For a monopoly, marginal revenue is equal to Marks : 1.0Id: 45194

1) The price of the product 2) The amount people buy between two prices

3) The amount people buy at a given price 4) The change in total revenue brought about bya oneunit increase in quantity sold

Q201) Which one of the following is an example of an externality, a market shortcomingwhich requires government interference?

Marks : 1.0Id: 45026

1) A majority of Punekar are overweight becausethey have unhealthy diets.

2) Bhati gets paid more than Rs.25 million peryear to play basketball.

3) Excessive pollution generated by business 4) Successful advertising convinces consumers

Explanation:

production is damaging the environment. to buy products they cannot afford and do notneed.

Q202) Equilibrium refers to a market situation where Marks : 1.0Id: 44950

1) Quantity supplied is equal to quantitydemanded

2) Quantity supplied is greater than quantitydemanded

3) Quantity demanded is at its lowest point 4) Demand curve intersect the supply curve at itslowest point.

Explanation:

Q203) Meaning of micro economics Marks : 1.0Id: 38734

1) Study of the general output 2) Study of general employment

3) Study of employment in a particular firm 4) Study of national income

Q204) In perfect competition, D= 20 3pp2 and the supply curve is S= p1, where p is price,D is demand and S is Supply, find the equilibrium price and equilibrium quantity.

Marks : 1.0Id: 45165

1) 4 and 5 2) 3 and 2

3) 6 and 7 4) 5 and 4

Explanation:

Q205) The author of “ An essay on the nature and significance of economic science” – Marks : 1.0Id: 44857

3) Robbins 4) Hicks and Allen

Q206) If new firms enter a monopolistically competitive market, the demand curves for theexisting firms will:

Marks : 1.0Id: 45176

1) Shift to the left and become more priceinelastic

2) Shift to the left and there will be no change inprice elasticity

Explanation:

3) Shift to the left and become more price elastic 4) Shift to the right and there will be no change inprice elasticity

Q207) Demand for the commodity depends on Marks : 1.0Id: 44926

1) Price of the commodity 2) Price of the related goods

3) Income 4) All of the above

Explanation:

Q208) Which among the followings is known as the owners of factors of production in the‘circular flow’?

Marks : 1.0Id: 38740

1) Household 2) Business

3) Government 4) Foreign

Q209) Human wants are – Marks : 1.0Id: 44823

1) Unlimited 2) Limited

3) Scarce 4) Fully satisfied

Explanation:

Q210) Adam smith’s wealth of nations published in Marks : 1.0Id: 44859

1) 1776 2) 1931

3) 1808 4) 1775

Q211) If technology improves significantly, it will have a impact on the quantitysupplied of a commodity.

Marks : 1.0Id: 45203

Explanation:

1) Positive. 2) Negative.

3) Small. 4) Large.

Q212) Robbins emphasized on – Marks : 1.0Id: 44824

1) Normative aspect of science 2) Positive aspect of science

3) Negative aspect of science 4) Non Material aspect of science

Explanation:

Q213) Assume that in the market for goods Z there is simultaneous increase in demand andthe quantity supplied. the result will be –

Marks : 1.0Id: 44956

1) An increase in equilibrium price and quantity 2) A decrease in equilibrium price and quantity

3) An increase in equilibrium quantity and priceremains same

4) Decrease in equilibrium price and quantityremains same.

Q214) Optimization means Marks : 1.0Id: 38756

1) Maximization 2) Minimization

3) Maximization of profit 4) It depends, the situation, sometimesmaximization and sometimes minimization

Explanation:

Q215) What is original price of a commodity when price elasticity is 0.71 and demandchanges from 20 units to 15 units and new price is Rs. 10.

Marks : 1.0Id: 38769

1) 15 2) 10

3) 8 4) 20

Q216) The word economics derived from – Marks : 1.0Id: 44817

1) Greek words 2) Italian words

Explanation:

3) Sanskrit words 4) Spanish words

Q217) Product differentiation is the form of Marks : 1.0Id: 45012

1) Price discrimination 2) Non price competition

3) Collusive oligopoly 4) Price leadership

Explanation:

Q218) The degree of is also known as concentration of economic power. Marks : 1.0Id: 45013

3) Monospony 4) Monopoly

Q219) When be Analyse the problem of economy as a whole it is a study of : Marks : 1.0Id: 45116

3) Both Macro and Micro Economics. 4) None of these

Explanation:

Q220) There are branches of economics Marks : 1.0Id: 44843

1) 2 2) 4

3) 5 4) 3

Q221) If a product is a Veblen good: Marks : 1.0Id: 45229

1) Demand is inversely related to income 2) Demand is inversely related to price

3) Demand is directly related to price 4) Demand is inversely related to the price ofsubstitutes

Explanation:

Q222) Income elasticity of necessity goods Marks : 1.0Id: 44936

3) Less than zero 4) Greater than zero

Q223) If AR = AC, the firm will get Marks : 1.0Id: 44979

Explanation:

1) Abnormal profit 2) Normal profit

3) Loss 4) No profit no loss

Q224) Theory of investment is a part of – Marks : 1.0Id: 44860

1) Micro economics 2) Price theory

3) Income theory 4) Positive science

Explanation:

Q225) The supply of a good refers to Marks : 1.0Id: 38786

1) Actual production of the good 2) Total existing stock of the good

3) Stock available for the sale 4) Amount of the good offered for sale at aparticular price per unit of time

Q226) The demand for Cheerios cereal is more priceelastic than the demand for cereals asa whole. This is best explained by the fact that:

Marks : 1.0Id: 45266

1) Cheerios are a luxury. 2) . cereals are a necessity._x000D_ c.

3) there are more substitutes for Cheerios thanfor cereals as a whole.

4) consumption of cereals as a whole is greaterthan consumption of Cheerios.

Explanation:

Q227) The Law of Supply states that as the price of a product increases: Marks : 1.0Id: 45242

1) consumers will buy less of the product. 2) sellers will offer less of the product for sale.

3) sellers will offer more of the product for sale. 4) new buyers will enter the market because theproduct appears popular.

Q228) The study of economic actions of individuals and small groups of individuals isknown as

Marks : 1.0Id: 45284

1) Macroeconomics 2) Microeconomics

Explanation:

3) Both a and b 4) None of the above

Q229) Homogeneous or differentiated product is the feature of – Marks : 1.0Id: 45003

Explanation:

Q230) Which of the following is a cartel? Marks : 1.0Id: 44997

1) UNO 2) IMF

3) EEC 4) OPEC

Q231) Kinked demand curve is related to Marks : 1.0Id: 38799

Explanation:

Q232) Suppose demand is expressed as QD = 300 50P. If we want to make this equationconsistent with the typical supply and demand diagram, this equation must be statedas;

Marks : 1.0Id: 38804

1) P = 300 50Q 2) P = 6 .02Q

3) P = 50 300Q 4) Q = 6 .02P

Q233) Fiscal year of India is recorded as: Marks : 1.0Id: 45045

1) 1st January to 31st December 2) 1st June to 31st May

3) 1st April to 31st March 4) 1st September to 31st August

Explanation:

Q234) Principal agent problem arises because Marks : 1.0Id: 45014

1) Objectives of principles are not met by themanagers

2) Objectives of principles are met by themanagers

3) Objectives of managers are met by the agents 4) Objectives of managers are not met by theagents

Explanation:

Q235) Negative sloped with higher elasticity demand curve is related to Marks : 1.0Id: 44987

1) Perfect competition 2) Mopolistic competition

3) Monopoly 4) Oligopoly

Q236) The firm has no control over the price of the product in which of the following marketstructures

Marks : 1.0Id: 45279

3) Oligopoly 4) Monopolistic competition

Explanation:

Q237) Demand for a product is best defined as Marks : 1.0Id: 45214

1) Various quantities that are demanded byconsumers

2) Total quantity of a product demanded at aparticular price in the market during a givenperiod of time

3) Total quantity of a product demanded during agiven period of time.

4) Various amounts desired by consumers.

Q238) Which of the following is a barrier to entry that typically results in monopoly? Marks : 1.0Id: 45188

1) The firm controls the entire supply of the rawmaterial

2) Production of the industry’s product is subjectto economies of scale

Explanation:

3) The firm holds an exclusive governmentregulation

4) Production of this product needs a largecapital investment

Q239) Identify the factor which generally keeps the price elasticity of demand for a goodlow

Marks : 1.0Id: 44915

1) Variety of uses for that goods 2) Its low price

3) Close substitute for that good 4) High proportion of consumer income spent onit

Explanation:

Q240) .__________ includes all payment paid to factors of production and opportunity cost. Marks : 1.0Id: 45262

1) Implicit costs. 2) Explicit costs.

3) Economic costs. 4) Accounting costs.

Q241) The theory of Invisible hand is given by Marks : 1.0Id: 45055

1) Samuelson 2) Peter Drucker

3) Adam Smith 4) Marshall

Explanation:

Q242) Which of the following is not a micro economic problem? Marks : 1.0Id: 44836

1) What to produce 2) How to produce

3) For whom to produce 4) Where to produce

Q243) In monopolistic competition, a firm: Marks : 1.0Id: 45232

1) Has no market power. 2) Captures significant economies of scale

3) Has a downwardsloping demand curve. 4) Has a standardized product that all firms

Explanation:

produce

Q244) The point where the total revenue line crosses the total cost line called Marks : 1.0Id: 45211

1) Point of inflection 2) Breakeven point

3) Equilibrium point 4) Split of point

Explanation:

Q245) Economics is concerned with: Marks : 1.0Id: 45065

1) earning as much money as possible. 2) limiting individuals' wants so that our scarceresources will not be used up.

3) using scarce resources to satisfy virtuallylimitless material wants and needs.

4) using as many workers as possible to produceany given level of output.

Q246) Numerical value of relatively inelastic is – Marks : 1.0Id: 44905

1) Zero 2) Infinite

Explanation:

Q247) The upper portion of kinked demand curve is relatively Marks : 1.0Id: 45001

1) More inelastic 2) More elastic

3) Less elastic 4) Inelastic

Q248) The president of 13th finance commission is Marks : 1.0Id: 44882

1) Vijay bhatkar 2) Vijay kelkar

3) P Chidambaram 4) Manmohan singh

Explanation:

Q249) The incomes received by entrepreneurs, by labor, and by the owners of land and ofcapital resources are, respectively:

Marks : 1.0Id: 45074

1) rents, wages, interest and profits. 2) wages, rents, profits and interest.

3) profits, wages, rents, and interest 4) interest, rents, wages, and profits.

Q250) Managerial economics consists of the use of economic modes of thought to analyze Marks : 1.0Id: 44868

Explanation:

business situation stated by –1) Mansfield 2) Spencer

3) McNair and Merriam 4) Adam smith

Q251) Which is correct statement about GNP? Marks : 1.0Id: 45081

1) Wages + dividend 2) Capital + Assets – depreciation

3) GNP at market price = GDP + cost of capital 4) GNP at factor cost = GNP at market price –indirect taxes + subsidies

Explanation:

Q252) In the circularflow diagram, Marks : 1.0Id: 45152

1) Firms are sellers in the resource market andthe product market.

2) Households are sellers in the resource market

3) Firms are buyers in the product market.

4) Spending on goods and services flow fromfirms to households.

Q253) Which of the following statement is incorrect? Marks : 1.0Id: 45103

1) Inflation : An increase in the overall level ofprices in the economy

2) Productivity : The amount of goods andservices produced from each hour of aworker’s time

Explanation:

3) Phillips curve: A curve that show the short runtradeoff between inflation and unemployment

4) Balance of Payment : which payment isbalanced in EXIM policy

Q254) Monopolist charge high price in the market in which elasticity is Marks : 1.0Id: 45008

1) Small 2) Large

3) Infinite 4) Positive

Explanation:

Q255) Principle deals with the allocation of available resources among thealternative activities.

Marks : 1.0Id: 44871

1) Equi marginal principle 2) Discounting principle

3) Time perspective principle 4) Incremental principle

Q256) When income of a consumer rises, the demand for inferior goods . Marks : 1.0Id: 45166

1) Rises. 2) Falls.

3) Does not change. 4) Either rises or falls

Explanation:

Q257) Which of the following combination is correct? Marks : 1.0Id: 44878

1) IMF International monetary fund establishedin 1946

2) WTO World trade organization established in1995

3) IBRD International bank of reconstruction anddevelopment also known as world bank

4) All of these

Q258) A market in which firms can enter and leave so easily that firms in the market facecompetition from potential entrants is called a

Marks : 1.0Id: 38764

1) Monopoly 2) Cartel

Explanation:

3) Contestable market 4) Limit pricing market

Q259) Which of the following is not the characteristic of a price taker? Marks : 1.0Id: 44969

1) TR = P* Q 2) AR = PRICE

3) MR =AR =PRICE = DEMAND 4) Negatively sloped demand curve

Explanation:

Q260) The factor of production that organizes economic activity and bears the risk in abusiness venture is:

Marks : 1.0Id: 45073

1) Labor. 2) Entrepreneur

3) Capital. 4) Land

Q261) There are …………. types of price elasticity. Marks : 1.0Id: 44904

1) Five 2) Four

3) Four 4) One

Explanation:

Q262) Who advocated economics is a science of choice? Marks : 1.0Id: 38737

1) Pigou 2) Fisher

3) Robbins 4) Say

Q263) The kinked demand model explained Marks : 1.0Id: 44989

Explanation:

1) Price flexibility 2) Price rigidity

3) Demand flexibility 4) Demand rigidity

Q264) Assume that when price is Rs. 20 the quantity demanded is 15 units, and when priceis increase by Rs. 3, the quantity demanded is 16 units. What is the marginalrevenue?

Marks : 1.0Id: 44958

1) 18 2) 16

3) 12 4) 252

Explanation:

Q265) Which of the following method of forecasting is related to economic indicator? Marks : 1.0Id: 44944

1) Barometric method 2) Regression

3) Trend projection method 4) Buyers intention method

Q266) Complementary goods like tea and sugar have a ________ cross elasticity: Marks : 1.0Id: 45185

1) Zero 2) Negative

3) Positive 4) Infinity

Explanation:

Q267) As a rise in the price of ink pen, its effect on ink explained as a Marks : 1.0Id: 44932

1) Increase in the price of ink 2) Increase in the demand of ink

3) Expansion in the quantity demanded of ink 4) Decrease in the demand of ink

Q268) If the price of orange juice increases, the demand for apple juice will ……… Marks : 1.0Id: 44901

1) Increase 2) Decrease

Explanation:

3) Remains the same 4) Becomes negative

Q269) Sales maximization means Marks : 1.0Id: 44848

1) Maximization of total revenue 2) Sale of large quantity of output

3) Increase the selling price 4) Minimize the cost

Explanation:

Q270) Economics is concerned with tradeoffs caused by scarcity. "Tradeoffs" refers to: Marks : 1.0Id: 45022

1) recycling old goods into new goods to reducethe scarcity problem.

2) the alternatives given up when makingchoices.

3) the buying and selling that occurs whenunwanted goods are exchanged for goods thatare desired.

4) the decisions about whether households orbusinesses should bear the entire burden ofthe scarcity problem.

Q271) If the proportionate change in demand is exactly equal and proportionate to thechange in price than elasticity of demand is

Marks : 1.0Id: 38779

1) Equal to zero. 2) Greater than one.

3) Less than one. 4) Equal to one.

Explanation:

Q272) GNP: Marks : 1.0Id: 45080

1) Is the total of cash, capital, production andgold

2) Is the total capital

3) Is the total of gold

4) Is the total measure of the flow of goods andservices at market value + income from abroad

Q273) Who is the mother of economics? Marks : 1.0Id: 38733

Explanation:

1) Resources 2) Wife of Smith

3) Scarcity 4) Money

Q274) EBT or Net Profit Before Tax equals Marks : 1.0Id: 45091

1) Sales revenue + cost of goods sold +allexpenses except for taxes

2) Sales revenue +cost of goods sold allexpenses except for taxes

3) Sales revenue cost of goods sold +allexpenses includes taxes

4) Sales revenue cost of goods sold +allexpenses except for taxes

Explanation:

Q275) An economy is said to be efficient if Marks : 1.0Id: 45153

1) It is possible to produce more of all goods. 2) It is possible to produce more of one goodwithout producing less of another.

3) It is not possible to produce more of one goodwithout producing less of another.

4) It is not possible to produce more of one goodat any cost

Q276) Petrol and Bikes are: Marks : 1.0Id: 45207

1) Independent commodities 2) Complementary goods

3) Substitute goods 4) Identical goods

Explanation:

Q277) Which of the following sector is not include in the circular flow of income in a threesector economy.

Marks : 1.0Id: 44867

1) Household 2) Firms

3) Government 4) Foreign market

Q278) Generally the demand curve has Marks : 1.0Id: 45273

Explanation:

1) A slope downwards from left to right 2) A constant slope

3) A slope upwards from right to left 4) A positive slope

Q279) is the example of mixed economy Marks : 1.0Id: 45289

1) India 2) USA

3) UK 4) Erstwhile USSR

Explanation:

Q280) The value of price elasticity of demand ranges from Marks : 1.0Id: 44929

1) Zero to one 2) One to infinity

3) Zero to infinity 4) One to zero

Q281) Managerial economics adopts the scientific approach of economic analysis, butwhich is not involved with the following?

Marks : 1.0Id: 45105

1) Reasoning for economic events and behaviourof business

2) Policies of macro economy

Explanation:

Q282) Which of the following is micro aspect? Marks : 1.0Id: 44832

1) Inflation in the economy 2) Lock out in TELCO

3) Unemployment 4) Depreciate the home currency

Q283) An increase in the demand for a good will tend to cause: Marks : 1.0Id: 45198

1) a decrease in the equilibrium price andquantity

2) an increase in the equilibrium price andquantity

3) an increase in the equilibrium price and adecrease in the equilibrium quantity

4) a decrease in the equilibrium price and anincrease in the equilibrium quantity

Explanation:

Q284) Economics is the study of Marks : 1.0Id: 45135

1) Production technology 2) Consumption decisions

3) How society decides what, how and for whomto produce

4) The best way to run society

Explanation:

Q285) A monopolistically competitive firm that is incurring a loss will produce as long asthe price that the firm charges is sufficient to cover:

Marks : 1.0Id: 45259

1) advertising costs 2) marginal costs

3) fixed costs. 4) variable costs

Q286) When we know the quantity of a product that buyers wish to purchase at eachpossible price, we know

Marks : 1.0Id: 45133

1) Demand 2) Supply

3) Excess demand 4) Excess supply

Explanation:

Q287) The government unit that wants to achieve "revenue enhancement" will find itconsiderably more favorable to enact an excise tax on products whose demand is

Marks : 1.0Id: 38782

1) Highly elastic. 2) Relatively elastic.

3) Highly inelastic. 4) Unitary elastic

Q288) When the price of petrol goes up, demand for automobiles decreases. It is impliesthat the petrol & automobiles are.........................

Marks : 1.0Id: 45258

1) Substitute goods 2) complementary goods

3) Inferior goods 4) Normal goods

Explanation:

Q289) In perfect competition, the price of the product is determined where the industry Marks : 1.0Id: 45204

1) Elasticity of supply equals the industryelasticity of demand

2) Supply curve and industry demand curveintersect.

3) Fixed cost is zero. 4) Average variable cost equals the industryaverage total cost

Q290) Price discrimination is possible Marks : 1.0Id: 44983

Explanation:

1) Only under monopoly situation 2) Under any market form

3) Only under monopolistic competition 4) Only under perfect competition

Q291) The regulatory mechanism of the market system is Marks : 1.0Id: 45062

1) Selfinterest 2) Private property

3) Competition 4) Specialization

Explanation:

Q292) Assume that consumer’s incomes and the number of seller in the market for good Aboth decrease. Based upon this information, we can conclude, with certainty, that theequilibrium

Marks : 1.0Id: 44955

1) Price will increase 2) Price will decrease

3) Quantity will increase 4) Quantity will decrease

Q293) Which of the following emphasized on normative aspect of science – Marks : 1.0Id: 44825

1) Marshall 2) Pigou

3) Adam smith 4) Both a and b

Explanation:

Q294) Which is the correct statement? Marks : 1.0Id: 45098

1) Accounting profit differs from economic profit 2) No difference between accounting cost andeconomic cost.

3) Accounting cost is equal to opportunity cost 4) Opportunity cost is same as Economic Profit.

Q295) The sale of fastrack watch is a common in a situation of – Marks : 1.0Id: 44991

Explanation:

Q296) Which of the following condition is not an essential condition of pure competition? Marks : 1.0Id: 44965

1) Large no. of buyers and sellers 2) Homogeneous product

3) Freedom of entry 4) Absence of transport cost

Explanation:

Q297) “Economics is the study of administration of scare resources and of thedeterminants of income and employments “. This definition of economics is givenby:

Marks : 1.0Id: 45115

1) Robbinson 2) Keynes

3) Marshall 4) Adam Smith

Q298) When the price of a product is increased 10 percent, the quantity demandeddecreases 15 percent. In this range of prices, demand for this product is:

Marks : 1.0Id: 45265

3) Crosselastic. 4) Unitary elastic.

Explanation:

Q299) What is income elasticity of demand , when income changes by 20% and demandchanges by 40%

Marks : 1.0Id: 44937

1) ½ 2) 2

3) 3 4) 0.33

Q300) Retained Earnings equals Marks : 1.0Id: 45093

1) Earnings After Tax (or Net Profit After Tax) payable dividends

2) Earnings After Tax (or Net Profit After Tax) +payable dividends

3) Earnings After Tax + payable dividends 4) Net Profit After Tax + payable dividends

Explanation:

Q301) Test marketing result may not be correct, because Marks : 1.0Id: 44939

1) Price elasticity of product is high 2) Events during the period not under control

3) Sample does not represent the populationwhere product is introduced

4) Due misguide by panel of experts

Explanation:

Q302) Triple identity in macroeconomics stands for Marks : 1.0Id: 38758

1) O= I= E 2) A=B=C

3) X=Y=Z 4) M=N=P

Q303) The demand curve faced by a competitive firm is: Marks : 1.0Id: 45234

1) Downward sloping, with the same elasticity asthe industry demand curve.

2) Perfectly elastic at the established marketprice

3) More inelastic than the demand curve faced byits competitors.

4) Nonexistent.

Explanation:

Q304) A firm operating under conditions of perfect competitions can Marks : 1.0Id: 45270

1) Determine the price of its product. 2) Capture the market by cutting down the price.

3) Determine only the size of its output. 4) Promote the sales through effectiveadvertisement.

Q305) Group behavior and interdependence is the characteristic of Marks : 1.0Id: 45010

Explanation:

Q306) Historical data is used in estimating future demand under Marks : 1.0Id: 38775

1) Survey method. 2) Expert opinion method.

3) Statistical method. 4) Complete Enumeration method.

Q307) Which profit the firm tries to maximize? Marks : 1.0

Explanation:

Id: 38757

1) Economic profit 2) Account profit

3) Opportunity profit 4) Average profit

Q308) When the full employment is reached it will lead to : Marks : 1.0Id: 45127

1) Deflation 2) Inflation

3) Market welfare 4) None of them

Explanation:

Q309) The ABC Ltd. produces television . An economist working for the firm predicts that 'ifpeople's incomes rise next year, then the demand for our television will increase. Theaccuracy of the economist's prediction depends on whether the television ABC Ltd.produce:

Marks : 1.0Id: 45191

1) are normal goods 2) have few complementary goods

3) have few substitutes 4) have many complementary goods

Q310) The demand curve of monopoly firm will be – Marks : 1.0Id: 44974

Explanation:

1) Upward sloping 2) Downward sloping

3) Horizontal 4) Vertical

Q311) An expected increase in future price of a good Marks : 1.0Id: 45200

1) has no effect on either its demand or itssupply.

2) decreases its demand.

3) increases its demand.

4) increases its supply.

Explanation:

Q312) A firm and industry are same under Marks : 1.0Id: 45216

Q313) Economic profit = total revenue – Marks : 1.0Id: 44852

1) Economic cost 2) Implicit cost

3) Explicit cost 4) Accounting cost

Explanation:

Q314) All of the following are the exceptions of the law of demand except Marks : 1.0Id: 44895

1) Giffen goods 2) Future expectation about prices

3) Demand for necessities 4) Demand for substitute goods

Q315) Consumers are likely to get a variety of goods under Marks : 1.0Id: 44994

Explanation:

3) Imperfect competition 4) Oligopoly

Q316) Which of the following is not true about perfect competition? Marks : 1.0Id: 45239

1) The demand curve is also the firm’s marginalrevenue curve.

2) The demand curve slopes downwards.

3) Free entry and exit.

4) Perfect knowledge among buyers and sellers

Explanation:

Q317) When excess demand occurs in an unregulated market, there is a tendency for: Marks : 1.0Id: 38746

1) price to fall. 2) price to rise.

3) quantity demanded to increase. 4) quantity supplied to decrease.

Q318) Microeconomics is NOT concerned with the behavior of: Marks : 1.0Id: 45053

1) Consumers 2) Aggregate demand

3) Firms 4) Industries

Explanation:

Q319) If demand increase due to increase in the income of consumer and at the same timessupply remains the same. equilibrium price and quantity demanded will be –

Marks : 1.0Id: 44954

1) Increase, decrease 2) Decrease, decrease

3) Increase, increase 4) Decrease , increase

Q320) an economy that allocates resources through the decentralized decisions of manyfirms and households as they interact in markets for goods and services is called as

Marks : 1.0Id: 45099

1) Market Economy 2) Business Economy

Explanation:

3) Social Economy 4) Economies of Scale

Q321) The kinked demand curve model assumes that a firm's rivals will Marks : 1.0Id: 38765

1) Follow the firm's price decreases but not itsprice increases

2) Not follow any of the firm's price changes.

3) Follow any price change the firm makes.

4) Follow the firm's price increases but not itsprice decreases.

Explanation:

Q322) It is defined as the difference between total revenue and total economic cost Marks : 1.0Id: 45146

1) Economic profit 2) Gross profit

3) Accounting profit 4) Operating profit

Q323) The concept of choice would become irrelevant if Marks : 1.0Id: 38735

1) capital were eliminated. 2) we were dealing with a very simple, oneperson economy

3) scarcity were eliminated. 4) poverty were eliminated.

Explanation:

Q324) In the short run, the monopolist Marks : 1.0Id: 44984

1) Incurs a loss 2) Abnormal profit

3) Makes a profit 4) Any of the above

Q325) Managerial economics is concerned with the problem of Marks : 1.0Id: 45054

1) An individual firm. 2) An economy.

Explanation:

3) An industry. 4) Global economy.

Q326) Managerial economics is also called Marks : 1.0Id: 38741

1) Applied Economics 2) Basic Economics

3) Macro Economics 4) Both ‘a’ and’ b’

Explanation:

Q327) A single point on the demand curve shows Marks : 1.0Id: 45272

1) Demand and supply relationship 2) Price and demand relationship

3) Price and supply relationship 4) Price and cost relationship

Q328) Which realworld market closely approximates perfect competition Marks : 1.0Id: 45190

1) most agricultural markets 2) automobile manufacturers

3) state universities 4) cable television services

Explanation:

Q329) NABARD established in – Marks : 1.0Id: 44885

1) 1982 2) 1970

3) 1999 4) 1975

Q330) Demand curve slope downward from …………….. To ……………………….. . Marks : 1.0Id: 44894

1) Left, right 2) Right ,left

3) Minimum , maximum 4) Maximum , minimum

Explanation:

Q331) Periods of less than full employment correspond to Marks : 1.0Id: 44847

1) Points outside the PPF 2) Points inside the PPF

3) Points on the PPF 4) Any of these

Q332) The collapse of communism is evidence of Marks : 1.0Id: 45035

Explanation:

1) Ceteris paribus 2) Market failure

3) The failure of a mixed economy 4) Government failure

Q333) In economics basic problem is ; Marks : 1.0Id: 45048

1) Sacrcity 2) Production

3) Allocation 4) Money

Explanation:

Q334) If the local restaurant raises the price of pizza from Rs. 60 and Rs.100 and quantitydemanded falls from 700 pizzas to 100 pizzas. the price elasticity is –

Marks : 1.0Id: 44912

1) 1.5 2) 3

3) 3 4) None of these

Q335) Which is one of the future consequences of an increase in the current level ofconsumption in the India?

Marks : 1.0Id: 44874

1) Slower economic growth in future 2) Greater economic growth in future

3) No change in growth rate 4) Greater capital; accumulation in future

Explanation:

Q336) The study of aggregates of economy is done through : Marks : 1.0Id: 45111

3) Theory of Population 4) Micro and Macro both

Q337) Monopolistic competition differs from perfect competition primarily because: Marks : 1.0Id: 45244

1) Barriers to entry in monopolistic competition 2) Product differentiation in monopolisticcompetition

Explanation:

3) Advertisement is not necessary inmonopolistic

4) Firm is a price taker in monopolisticcompetition

Q338) Constrained optimization techniques are not designed to deal with the problem of: Marks : 1.0Id: 45162

1) Selfserving management 2) Contractual requirements

3) Scarce investment funds 4) Limited availability of essential inputs

Explanation:

Q339) Goods that exhibit direct price demand relationship are called – Marks : 1.0Id: 44923

1) Normal goods 2) Normal goods

3) Luxury goods 4) Complementary goods

Q340) Which of the following pairs of goods is an example of substitutes? Marks : 1.0Id: 38784

1) Tea & Sugar 2) Tea & Coffee

3) Pen & Ink 4) Shirt & Trousers

Explanation:

Q341) Quantity demanded and price has a: Marks : 1.0Id: 45205

1) Positive relationship 2) Constant relationship

3) Negative relationship 4) Zero relationship

Q342) Which statement is not the objective of the firm? Marks : 1.0Id: 45106

Explanation:

1) Firm’s value Maximization to its shareholders. 2) Firm’s Size Maximization

3) Firm’s Profit Maximization 4) Firm’s Price Maximization

Q343) For what type of good does demand fall with a rise in income levels of household? Marks : 1.0Id: 44931

1) Inferior goods 2) Substitutes

3) Luxurious 4) Necessities

Explanation:

Q344) What is MR? Marks : 1.0Id: 38800

1) MR=TRnTRn1. 2) MR=TR/TQ.

3) MR=TR/TC. 4) MR=TR/AC.

Q345) Why do firms engage in price discrimination? Marks : 1.0Id: 45278

1) To differentiate market segments 2) To gain monopolistic power

3) Keep consumers demand low 4) To make greater profits

Explanation:

Q346) Business economics is also known as _x000D_ _x000D_ Marks : 1.0Id: 45283

1) Managerial Economics 2) Economics for executives

3) Economic analysis for business decisions 4) All of the above

Q347) Utility refers to – Marks : 1.0Id: 44854

1) Want satisfying power of goods and service 2) Ethical concept

3) Stock concept 4) Utilization

Explanation:

Q348) GNP is equal to Marks : 1.0Id: 45078

1) GDP + Interest 2) Wages

3) GDP+ Net factor income from abroad 4) GDP + Net depreciation

Q349) Equilibrium refers to Marks : 1.0

Explanation:

Id: 44856

1) Optimum situation 2) Absence of change in movement

3) Demand is equal to supply 4) All of these

Q350) Material welfare definition of economics stated by Marks : 1.0Id: 44820

1) J B Say 2) Robbins

Explanation:

Q351) National income was kept somewhere between G.N.P. and N.N.P. by: Marks : 1.0Id: 45123

1) Pigou 2) Marshall

3) Keynes 4) Adam Smith

Q352) In case the marginal cost of production is zero, the monopolist would produce at thepoint where price elasticity

Marks : 1.0Id: 45256

1) Unity 2) Zero

Explanation:

Q353) Which of the following is not incorrect? Marks : 1.0Id: 38776

1) Accounting profit is the excess of accountingincome over accounting expenses.

2) Accounting cost is also known as explicit cost.

3) Economic profit = Total Revenue Economiccost.

4) All of these

Q354) A firm has a variable cost of rs.1000 at 5 units of output. If fixed cost is Rs.400, what Marks : 1.0

Explanation:

will be the average total cost at 5 units of output? Id: 44964

1) Rs. 240 2) Rs. 120

3) Rs. 280 4) Rs. 60

Q355) Socialist economist like Karl Marx consider profit as Marks : 1.0Id: 44851

1) Unearned surplus 2) Exploitation of labour

3) Both a and b 4) Uncertainty bearing

Explanation:

Q356) In economics, a firm is said to be making _______ when total revenues equal totalcosts.

Marks : 1.0Id: 45096

1) An Accounting Profit 2) A Normal Profit

3) An Economic Profit 4) An Abnormal profit

Q357) The principal reason behind economic problems is Marks : 1.0Id: 45056

1) Limited wants 2) Limited or scarce means

3) Unlimited resources 4) Stable environment

Explanation:

Q358) If a consumption of a product remains unaffected by the change in price of theproduct, demand for the product is:

Marks : 1.0Id: 45182

1) Kinked 2) Perfectly elastic

3) Perfectly inelastic 4) Unitary elastic

Q359) Which among the following is not an economic problem? Marks : 1.0Id: 38743

1) What to produce 2) How to produce

Explanation:

3) Why to produce 4) Relation between mother and child

Q360) Under which of the following forms of market structure does a firm have no controlover the price of its product?

Marks : 1.0Id: 44972

Explanation:

Q361) If the demand for the product is independent of the demand for other goods ,it iscalled is –

Marks : 1.0Id: 44922

1) Derived demand 2) Autonomous demand

3) Industry demand 4) Company demand

Q362) The word economy comes from the Greek word for Marks : 1.0Id: 45141

1) Environment. 2) One who participates in a market

3) One who manages a household 4) Conservation

Explanation:

Q363) A firm in long run equilibrium under monopolistic competition makes only Marks : 1.0Id: 44988

1) Normal profits 2) Supernormal profits

3) Loss 4) All of the above

Q364) In monopoly, marginal revenue is: Marks : 1.0Id: 45187

1) Always equal to price 2) Lower than price for all units other than thefirst

3) Less than price at all levels of output andgreater than price at high levels of output

4) Always greater than price

Explanation:

Q365) “Full Employment” assumption is generally made in: Marks : 1.0Id: 45110

3) Employment theory 4) None of the above

Q366) In economics the central problem is: Marks : 1.0

Explanation:

Id: 45036

1) Money 2) Scarcity

3) Allocation 4) Production

Q367) According to law of demand, there is …………… relationship between price andquantity demanded of the goods.

Marks : 1.0Id: 44889

1) Inverse 2) Direct

3) Legal 4) Negative

Explanation:

Q368) Micro economics is also known as ________: Marks : 1.0Id: 45019

1) Product theory 2) Price theory

3) Process theory 4) Projection theory

Q369) an economist says that firm practices price discrimination, that firm is: Marks : 1.0Id: 45275

1) Exploiting the poor 2) Charging different prices for the same good orservice

3) Making great efforts to keep its costs as low aspossible

4) Producing two products, one with decreasingreturns to scale and the other with increasingreturns

Explanation:

Q370) Price control is one of the monopoly regulations which is most advantageous for Marks : 1.0Id: 44985

1) The producer 2) The consumer

3) The government 4) The seller

Q371) Perfect competitive market firm achieves equilibrium when Marks : 1.0Id: 38793

Explanation:

1) Demand = Supply 2) AR= MR

3) MR=MC 4) AR=MC

Q372) Supply refers to – Marks : 1.0Id: 44945

1) What firms sell 2) What firms offer for sale

3) Stock maintained by seller 4) Selling of a goods at a profit

Explanation:

Q373) .equals revenue minus all explicit costs. Marks : 1.0Id: 45061

1) Accounting profit 2) Economic profit

3) Normal profit 4) Loss

Q374) 46. Economic Profit = Total Revenue (___________________________________) Marks : 1.0Id: 38749

1) Explicit Cost 2) Implicit Cost

3) Explicit Cost + Implicit Cost 4) Explicit Cost –Implicit Cost

Explanation:

Q375) _______economics deals with the determination of national income and output: Marks : 1.0Id: 45042

1) Micro 2) Price

3) Macro 4) Individual

Q376) Who has written ‘it is not from the benevolence of the butcher, the brewer or thebaker that we expect our dinner, but from their regard to their own selfinterest’?

Marks : 1.0Id: 38760

1) Adam Smith 2) Marshall

3) Malthus 4) Milton Friedman

Explanation:

Q377) Gross profit equals Marks : 1.0Id: 45088

1) COGS 2) Sales Revenue minus cost of goods sold

3) Sales Revenue only 4) Sales Revenue plus Profit

Q378) When the price of commodity X rises, the quantity demanded of its substitute good Y Marks : 1.0

Explanation:

keeping the price of Y constant. Id: 45167

1) Rises. 2) Falls

3) Does not change 4) Either rises or falls

Q379) The condition of equilibrium in a firm is Marks : 1.0Id: 45269

1) MR= MC 2) MR=AC

3) MR=AR 4) MC=AC

Explanation:

Q380) There would be no need to study economics if: Marks : 1.0Id: 45021

1) there were no government controls onpeople's actions.

2) people were free to do whatever they wantedwith their lives.

3) there were enough resources to produce allthe goods and services people would like toobtain.

4) Government controls the economy.

Q381) The price elasticity of demand measures: Marks : 1.0Id: 45274

1) the slope of a budget curve. 2) the responsiveness of the quantity demandedto changes in price.

3) how often the price of a good changes. 4) how sensitive the quantity demanded is to

Explanation:

changes in demand.

Q382) The Perfectly Competitive firm’s demand curve coincides with: Marks : 1.0Id: 45179

1) its average revenue curve and total revenuecurve.

2) both its marginal and average revenue curve.

3) its average revenue curve and total revenuecurve.

4) both its marginal and total revenue curve

Explanation:

Q383) Product differentiation is the feature of Marks : 1.0Id: 38797

Q384) The basic reason we study economics is because material wants and needs are: Marks : 1.0Id: 45044

1) Limited and so are resources. 2) Unlimited but resources are not.

3) Limited but resources are not. 4) Unlimited and so are resources.

Explanation:

Q385) Which is the first order condition for the profit of a firm to be maximum? Marks : 1.0Id: 44970

1) AC = MR 2) MC = MR

3) MR = AR 4) AC = AR

Q386) Adam Smith invisible hands stands for Marks : 1.0Id: 38753

1) Two opposite market forces of demand andsupply

2) Only demand

Explanation:

3) Only supply

4) Production and Distribution

Q387) Which Of The Following Is/ Are False? Marks : 1.0Id: 45129

1) With Good Monsoons People’s PurchasingPower Decreases

2) A Low Rate of Interest Is Must for EconomicDevelopment

3) Rate Of Saving Is Important For Growth. 4) A and B

Explanation:

Q388) Which of the following is the reason of leftward ship of demand curve? Marks : 1.0Id: 44898

1) Rise in the price of substitute 2) Change in taste in favour of this commodity

3) Rise in price of complementary 4) Rise in the income of the consumer

Q389) Demand for electricity power is elastic because – Marks : 1.0Id: 44940

1) Due to its high price per unit 2) It is essential for life

3) It has many uses 4) It has many substitutes

Explanation:

Q390) Marginal utility analysis assumes that the marginal utility of money: Marks : 1.0Id: 45113

1) Remains Constant 2) Varies according to consumer behaviour

3) Varies according to price fluctuations 4) Depend on the Inflation

Q391) Macroeconomics is the study of____________________ Marks : 1.0Id: 45132

1) Individual building blocks in the economy 2) The relationship between different sectors ofthe economy

Explanation:

3) Household purchase decisions 4) The economy as a whole

Q392) Items of joint consumption will have ______ cross elasticity Marks : 1.0Id: 45250

3) Zero 4) None

Explanation:

Q393) Elasticity of demand is defined as the responsiveness of the quantity demanded of agood to ……

Marks : 1.0Id: 44902

1) Change in the price of the goods 2) Change in the income

3) Change in one of the variable on whichdemand depends

4) Change in the population

Q394) cost is also known as imputed cost. Marks : 1.0Id: 45290

1) Opportunity 2) Marginal

3) Total 4) Historical

Explanation:

Q395) Law of demand depends upon Marks : 1.0Id: 45267

1) Inverse relationship between price & quantity 2) Positive relationship between price & quantity.

3) Both 4) None

Q396) Which of the following involves the study of the overall economy of a country? Marks : 1.0Id: 45043

1) Nanoeconomics 2) Macroeconomics

3) Microeconomics 4) Neoeconomics

Explanation:

Q397) According to Adam Smith’s theory of the “invisible hand,” businesses will producethe products consumers most desire because

Marks : 1.0Id: 45025

1) this will maximize consumer satisfaction. 2) the government requires them to do so.

3) this will maximize business profits. 4) this will maximize society’s welfare.

Q398) Deductive , Analytical, Abstract method is used by: Marks : 1.0Id: 45118

Explanation:

1) Classical School 2) NeoClassical School

3) Modern School 4) Ancient School

Q399) It is called as …………………….if_x000D_• It explains the working of the economic system as a whole_x000D_• It’s knowledge is indispensable for the policy makers_x000D_• It is very useful to the planner for preparing economic plans_x000D_• It is helpful in international comparison_x000D_ _x000D_

Marks : 1.0Id: 45102

1) Micro economics 2) Macroeconomics

3) Indian economics 4) International economics

Explanation:

Q400) If the price of Pepsi rise, demand of coco cola Marks : 1.0Id: 44942

1) Increase 2) Decrease

3) Rise 4) Fall

Q401) Which of the following is the most accurate statement about economic models? Marks : 1.0Id: 45143

1) Economic models attempt to mirror realityexactly.

2) Economic models are useful, but should notbe used for policymaking.

Explanation:

3) Economic models cannot be used in the realworld because they omit details.

4) Economic models omit many details to allowus to see what is truly important.

Q402) Product differentiation is a common feature in. Marks : 1.0Id: 45264

1) Perfect competition. 2) Monopolistic competition.

3) Oligopoly. 4) Monopoly.

Explanation:

Q403) Micro economics is the Marks : 1.0Id: 45058

1) Study of the general output 2) Study of general employment

3) Study of employment in a particular firm 4) Study of national income

Q404) Production possibility curve is Marks : 1.0Id: 44875

1) Concave to the origin 2) Convex to the origin

3) Straight line when opportunity cost is constant 4) Both a and c

Explanation:

Q405) If a product has more substitutes, demand is highly . Marks : 1.0Id: 45222

3) Relatively more elastic. 4) Relatively less elastic.

Q406) From society's point of view the economic function of profits and losses is to: Marks : 1.0Id: 45147

1) Promote the equal distribution of real assetsand wealth

2) Reallocate resources from less desired tomore desired uses

3) Achieve full employment and price levelstability

4) Contribute to a more equal distribution ofincome

Explanation:

Q407) With a fall in an agricultural crop due to bad monsoons, the supply elasticity ofagricultural goods will .

Marks : 1.0Id: 45223

1) Fall. 2) Rise.

3) Change. 4) Not change.

Q408) Accounting profit = total revenue – Marks : 1.0

Explanation:

Id: 44853

1) Economic cost 2) Implicit cost

3) Explicit cost 4) Marginal cost

Q409) Supply curve slope Marks : 1.0Id: 44947

1) Downward from left to right 2) Upward from left to right

3) Downward from right to left 4) Upward from right to left

Explanation:

Q410) Managerial economic is a “ Fundamental academic subject which seeks tounderstand and to analyse the problems of business decision taking” – the definitionis given by

Marks : 1.0Id: 45085

1) Savage and Small 2) Adam smith

3) D.C. Hayue 4) Richard Meriam

Q411) Which of the following is an example of a resource constraint? Marks : 1.0Id: 45158

1) Pollution control laws 2) Inadequate demand

3) Excessive production costs 4) Inadequate financial capital

Explanation:

Q412) Which of the following is not correct? Marks : 1.0Id: 44943

1) If proportion of income spent on goodsremains same as an income is increase, thenincome elasticity is one

2) If proportion of income spent on goodsremains same as an income is decrease, thenincome elasticity is one

3) If proportion income spent on a good increaseas an income increase, then income elasticityis less than one

4) If proportion income spent on a good increaseas an income increase, then income elasticityis greater than one

Explanation:

Q413) Which is NOT the function of Managerial Economist? Marks : 1.0Id: 45104

1) Controlling the macro economy only 2) Involved with macro and micro economy both

3) Demand estimation and forecasting 4) Directing economic research activity

Q414) Producers' total revenue will decrease if: Marks : 1.0Id: 45199

1) the price rises and demand is inelastic. 2) income increases and the good is a normalgood.

3) the price rises and demand is elastic. 4) income falls and the good is an inferior good.

Explanation:

Q415) The switch to the use of HFCS from sugar in soft drinks was prompted in large partby its relatively lower price. Assuming a competitive market, what effect would thischange have on the equilibrium price and output for soft drinks?

Marks : 1.0Id: 38803

1) price rises, output falls 2) price falls, output rises

3) price rises, output rises 4) price falls, output falls

Q416) Adam Smith’s theory of the “invisible hand” assumes that Marks : 1.0Id: 45028

1) businesses will voluntary reduce negativeexternalities generated by the production oftheir products

2) consumers are concerned about maximizingthe welfare of their fellow consumers.

3) selfinterested producers sell their products to

Explanation:

selfinterested consumers.

4) government research is necessary to informbusinesses what consumers most want.

Q417) The Latin phrase ‘Ceterius Paribus’ means: Marks : 1.0Id: 45018

1) ‘Everything else change simultaneously’ 2) ‘Everything else being equal’

3) ‘Few factors change at same frequency’ 4) ‘All factors change at same frequency’

Explanation:

Q418) The price elasticity of demand is a negative number this means: Marks : 1.0Id: 45230

1) Demand is price elastic 2) Demand is price inelastic

3) The demand curve is downward sloping 4) An increase in income will reduce the quantitydemanded

Q419) If demand is price inelastic: Marks : 1.0Id: 45231

1) An increase in price must raise profits 2) An increase in price decreases revenue

3) An increase in price increases revenue 4) A decrease in price reduces sales

Explanation:

Q420) To maximize value, management must: Marks : 1.0Id: 45160

1) Maximize short run revenue 2) Minimize short run average profit

3) Maximize long run profit 4) Maximize short run profit

Q421) A selfinterest can be well understood as Marks : 1.0Id: 38755

1) Acting in the way that is most personallybeneficial

2) Acting in the way that is most beneficial to thesociety

Explanation:

3) Acting in the way that is most beneficial to thefamily

4) Acting in the way that is most beneficial to thefirm

Q422) If the price of coffee fall the demand for tea will ……………….. Marks : 1.0Id: 44892

1) Rise 2) Fall

3) decrease 4) constant

Explanation:

Q423) The Law of Demand states that when the price of a commodity falls the quantitydemanded keeping all other factors constant. _x000D_

Marks : 1.0Id: 45220

1) Rises. _x000D_ 2) Falls

3) Is constant._x000D_ 4) Will remain constant. _x000D_

Q424) Multi plant monopolist is an illustration of Marks : 1.0Id: 45189

1) Price discrimination of first degree 2) Price discrimination of second degree

3) Price discrimination of third degree 4) Natural monopoly

Explanation:

Q425) Which of the following is shut down point Marks : 1.0Id: 45004

1) AR > AC 2) AR > AVC

3) AR < AVC 4) AR > FC

Q426) Ceteris Paribus is the Latin expression for Marks : 1.0Id: 45034

1) A statement about the way the economic worldought to be

2) An expression that means "other things beingequal."

Explanation:

3) The (false) statement that what is true of theparts is true of the whole or what is true of thewhole is true of the parts.

4) The error of reasoning that a first event causesa second event because the first eventoccurred before the second event.

Q427) To cure the problem of externalities, such as pollution, economists recommend thatgovernment

Marks : 1.0Id: 45029

1) regulate polluters 2) pursues a policy of laissezfaire, "hands off"businesses.

3) determine mandatory limits controlling theamount of pollution which businesses maygenerate.

4) use the market mechanism to controlundesirable externalities.

Explanation:

Q428) Demand of commodity refers to Marks : 1.0Id: 44886

1) Desire for the commodity 2) Need for the commodity

3) Quantity demanded for that commodity 4) Quantity of the commodity demanded at acertain price during any particular period oftime.

Q429) In case of increase in demand, the demand curve Marks : 1.0Id: 38773

1) Shifts backwards. 2) Shifts forward.

3) Will have upward slope. 4) Will be horizontal.

Explanation:

Q430) According to profit maximization theory of the firm, management decides Marks : 1.0Id: 45064

1) Output level which maximizes revenue 2) Output level which minimizes cost

3) Output level which maximizes differencebetween the two

4) Output level which minimizes revenue

Q431) The theory of monopolistic competition is developed by Marks : 1.0

Explanation:

Id: 44986

1) E H Chamberlin 2) Robinson

Q432) The modern theory of the firm holds that firms behave in a way that is designed tomaximize

Marks : 1.0Id: 45154

1) Profit 2) The value of the firm

3) Monopoly power 4) Total revenue

Explanation:

Q433) The Classical theory of international trade is propounded by : Marks : 1.0Id: 45128

1) Adam smith 2) Robbinson

3) Pigou 4) Marx

Q434) Change in demand represents Marks : 1.0Id: 44899

1) Shift of demand curve to left or right 2) Shift of demand curve to left

3) Shift of demand curve to right 4) Expansion and contraction

Explanation:

Q435) In a perfectly competitive market ______________. Marks : 1.0Id: 45263

1) There are large number of buyers and a smallnumber of sellers.

2) There are a large number of sellers and smallnumber of buyers.

3) There are a small number of sellers andbuyers.

4) There are a large number of buyers andsellers.

Q436) When the decrease in the price of one good causes the demand for another good todecrease, the goods are:

Marks : 1.0Id: 45254

1) normal. 2) inferior

Explanation:

3) Substitute 4) Complimentary

Q437) If there are many firms in an industry producing goods that are similar but slightlydifferent, this is an example of:

Marks : 1.0Id: 45233

1) Perfect competition. 2) Monopolistic competition.

Explanation:

Q438) The tendency for managers to operate a firm in a way that maximizes their personalutility rather than the firm’s profits is referred to as the

Marks : 1.0Id: 45155

1) Consumer utility incentive 2) Principalagent problem

3) Hidden agenda scenario 4) Modigliani Hypothesis

Q439) With a fall in agricultural subsidy, the price of agricultural goods will and thequantity supplied will also keeping all other variables constant.

Marks : 1.0Id: 45224

1) Increase 2) Decrease.

3) Will not increase. 4) Will not decrease.

Explanation:

Q440) If Average revenue = Rs.10 and Average cost = Rs. 7, then Marks : 1.0Id: 38770

1) Firm get Normal Profit 2) Firm get abnormal Profit

3) Firm face Loss 4) Break even point

Q441) The total demand for goods and services in an economy is known as: Marks : 1.0Id: 45248

1) aggregate demand 2) gross national product

3) economywide demand. 4) national demand

Explanation:

Q442) Sales revenue after deducting all expenses, including taxes Marks : 1.0Id: 45092

1) Earnings After Tax 2) Net Profit before Tax

3) Earnings before Tax 4) Gross Profit After Tax

Q443) Negative cross elasticity between any two commodities implies that they are: Marks : 1.0Id: 45253

Explanation:

1) Complements 2) Substitutes

3) Inferior goods 4) Luxuries

Q444) If electricity demand is inelastic, and electricity charge increase, which of thefollowing is likely to occur?

Marks : 1.0Id: 44925

1) Quantity demanded will fall by a relativelylarge amount

2) Quantity demanded will rise in the short runbut fall in long run

3) No change in quantity demanded 4) No change in quantity demanded

Explanation:

Q445) When consumption and investment spending together is greater than fullemployment GNP level, it creates

Marks : 1.0Id: 45121

1) Deficit Financing 2) Deflationary GAP

3) Inflationary GAP

Q446) With a fall in a price of a commodity Marks : 1.0Id: 44924

1) Consumers real income increase 2) Consumers real income decrease

3) No change real income 4) None of these

Explanation:

Q447) The total revenue curve for a perfectly competitive firm Marks : 1.0Id: 45257

1) is a vertical line intersecting the horizontalaxis

2) is a horizontal line at the market price

3) starts part way up the vertical axis, slopingupward in a backwardsS curve

4) is a straight line starting from the origin andsloping upward

Explanation:

Q448) Goods and Services bought and sold in: Marks : 1.0Id: 45049

1) Product Market 2) Factor Market

3) Capital Market 4) Money Market

Q449) Value maximization means Marks : 1.0Id: 44850

1) Profit maximization 2) Sales maximization

3) Wealth maximization 4) Cost minimization

Explanation:

Q450) The demand of which type of goods do not decrease with increase in its price – Marks : 1.0Id: 44935

1) Comforts 2) Luxury

3) Necessities 4) Capital goods

Q451) Derivative use in the …………………….. Method of price elasticity. Marks : 1.0Id: 44909

1) Point 2) Outlay

3) Arc 4) Output

Explanation:

Q452) Demand forecasting is made for the Marks : 1.0Id: 38774

1) For the existing products only. 2) New products only.

3) For both the existing products & for the newproducts.

4) For the substitutes only.

Q453) Firm is an organization that produces and sells goods with the goal of maximizing itsprofits

Marks : 1.0Id: 44849

1) Miller 2) Adam smith

Explanation:

3) Landsbury 4) Marshall

Q454) Sales opinion survey method is also known as Marks : 1.0Id: 44927

1) Sample survey 2) Experts pinion method

3) Test marketing 4) Reaction survey

Explanation:

Q455) Brand Loyalty usually makes the demand curve for a product: Marks : 1.0Id: 45195

1) More price elastic 2) Less price elastic

3) Unitary elastic 4) More income elastic

Q456) To accountants, it is a singleperiod metric to determine the value created by acompany in one period—usually a year

Marks : 1.0Id: 45094

1) Gross Profit 2) Economic Profit

3) Net Profit 4) Norma Profit

Explanation:

Q457) If elasticity is greater than one, then MR is Marks : 1.0Id: 45009

1) Positive 2) Zero

3) Negative 4) Negative

Q458) Inflation is: Marks : 1.0Id: 45249

1) a decrease in the overall level of economicactivity

2) a decrease in the overall price level

3) an increase in the overall price level

Explanation:

4) an increase in the overall level of economicactivity

Q459) cost is also known as explicit cost. Marks : 1.0Id: 45291

1) Opportunity 2) Accounting

3) Outlay 4) Sunk

Explanation:

Q460) What is the goal of theories? Marks : 1.0Id: 45150

1) To provide an interesting, but not useful,framework of analysis

2) To help scientists understand how the worldworks

3) To demonstrate that the developer of thetheory is capable of logical thinking

4) To provoke stimulating debate in scientificjournals

Q461) The crosselasticity of the two complementary goods X and Y is . Marks : 1.0Id: 45174

3) Direct. 4) Indirect.

Explanation:

Q462) If the price of Pepsi decreases relative to the price of coke and 7up , the demand for Marks : 1.0Id: 44893

1) Coke will decrease 2) 7 up will decrease

3) Coke and 7up will increase 4) Coke and 7up will decrease

Q463) Economic Analysis for Business Decisions is integration of: Marks : 1.0Id: 45071

1) Technology, Economics and physical science 2) Economics, decision science and businessmanagement

Explanation:

3) Knowledge and principles 4) Control and conflicts

Q464) Of the following commodities which has the lowest elasticity of demand Marks : 1.0Id: 38785

1) Car 2) Salt

3) Tea 4) House

Explanation:

Q465) When as a result of increase in price of a good , the total expenditure made on thegood falls, we say that price elasticity of demand is –

Marks : 1.0Id: 44913

3) Equal to unity 4) zero

Q466) When an individual spends relatively less proportion of his/her total income on aparticular commodity or service, its elasticity of demand is elastic.

Marks : 1.0Id: 45172

1) More. 2) Less.

3) Relatively more. 4) Relatively less.

Explanation:

Q467) Business profit is equal total revenue minus Marks : 1.0Id: 45157

1) Economic costs 2) Explicit costs

3) Implicit costs 4) Managerial costs

Q468) A market economy based on supply and demand with little or no government controlis known as

Marks : 1.0Id: 45015

Explanation:

1) Free economy 2) No economy

3) Restricted economy 4) Only economy

Q469) It is called as______________if _x000D_ • It explains Price Determination_x000D_ • Itexplains Allocation of Resources_x000D_ • It has Direct Relevance in BusinessDecision Making_x000D_ • It serves as a Basis for Prediction

Marks : 1.0Id: 45100

1) Micro economics 2) Macro economics

3) Indian economics 4) Industrial economics

Explanation:

Q470) Economics is defined as: Marks : 1.0Id: 45040

1) The study of business 2) The study of how society manages its scarceresources

3) The study of central planning 4) The study of government regulation

Q471) Macroeconomics examines: Marks : 1.0Id: 45072

1) pricing, profit maximization, and utilitymaximization.

2) employment, output, and inflation.

3) the behavior of individual households,businesses, and government units.

Explanation:

4) firm, Industry and sector

Q472) One of the basic assumptions underlying Adam Smith's theory of the Invisible Handis that

Marks : 1.0Id: 45027

1) government attempts to maximize power. 2) government planning is necessary tomaximize economic growth.

3) businesses and households are concernedabout their own “selfinterest.”

4) households are unselfish. They attempt tomaximize the well being of their fellow citizens.

Explanation:

Q473) Total revenue is maximum when_x000D_ Marks : 1.0Id: 45281

1) Marginal revenue is positive _x000D_ _x000D_ 2) Marginal revenue is negative

3) Marginal revenue is zero 4) None of the above

Q474) Economics deals primarily with the concept of: Marks : 1.0Id: 45067

1) Poverty 2) Change

3) Scarcity 4) Power

Explanation:

Q475) Who is the president of planning commission? Marks : 1.0Id: 44880

1) Prime minister 2) President

3) Governor 4) Finance minister

Q476) A market situation where there are few sellers for the product is called : Marks : 1.0Id: 45238

1) Pure competition 2) Oligopoly.

3) Monopolistic 4) Monosony.

Explanation:

Q477) The price of beverage increase by 22% and the quantity demanded of it falls by 25%.This indicates that demand for beverage is –

Marks : 1.0Id: 44911

1) Elastic 2) Inelastic

3) Unitary elastic 4) Perfectly elastic

Q478) Microeconomics deals with which of the following? Marks : 1.0Id: 45140

Explanation:

1) The total output of an economy 2) The measurement of a nation's inflation rate

3) How producers and consumers interact inindividual markets

4) How tax policies influence economic growth

Q479) The crosselasticity of the two substitute goods X and Y is . Marks : 1.0Id: 45173

3) Direct. 4) Indirect.

Explanation:

Q480) Elasticity between two points calculate in – Marks : 1.0Id: 44934

1) Cross elasticity 2) Arc elasticity

3) Point elasticity 4) Outlay method

Q481) Movement along the same demand curve shows Marks : 1.0Id: 44930

1) Expansion of demand 2) Contraction of demand

3) Increase or decrease in demand 4) Expansion and contraction in demand

Explanation:

Q482) When the price of commodity X rises, the quantity demanded of its complementarygood Y keeping the price of Y constant.

Marks : 1.0Id: 45168

1) Rises. 2) Falls

3) Does not change 4) Either rises or falls

Q483) Goods which has a negative income elasticity called as Marks : 1.0Id: 44919

1) Inferior goods 2) Inferior goods

Explanation:

3) Complementary goods 4) Substitute goods

Q484) Capital goods are those goods Marks : 1.0Id: 44855

1) Which are consumed by consumer 2) That help in further production

3) That can be consumed number of times 4) That satisfy human wants

Explanation:

Q485) To Adam Smith, the "invisible hand" refers to Marks : 1.0Id: 45046

1) the government 2) his faith in people's basic human kindness totheir fellow man.

3) the generosity of businesses in a capitalistsystem.

4) the free market.

Q486) Which of this is a noncompetitive market? Marks : 1.0Id: 45245

1) Oligopoly 2) Perfect competition

3) Monopoly 4) Monopolistic

Explanation:

Q487) is the predecessor of WTO. Marks : 1.0Id: 45059

1) GAAT 2) IMF

3) IBRD 4) None of These

Q488) Managerial Economics has a wide scope in Marks : 1.0Id: 45076

1) Value Engineering 2) Value Engineering Management

3) Value Management 4) Profit Management

Explanation:

Q489) Which of the following sentence is correct? Marks : 1.0Id: 44948

1) Contraction of supply means upwardmovement of supply curve

2) Expansion of supply means downwardmovement of supply curve

3) Increase in supply means rightward shift ofdemand curve

4) Expansion of supply means upward movementof supply curve

Explanation:

Q490) Micro economic is also known as Marks : 1.0Id: 44858

1) Income theory 2) Profit theory

3) Price theory 4) Cost theory

Q491) The circular flow of goods and incomes shows the relationship between: Marks : 1.0Id: 45047

1) wages and salaries. 2) firms and households

3) goods and services. 4) income and money.

Explanation:

Q492) The firm can achieve equilibrium when its Marks : 1.0Id: 45193

1) MC= MR 2) MC= AC

3) ME= AC 4) MR= AR

Q493) The foundation stones from which economic models are built are Marks : 1.0Id: 45149

1) Economic policies. 2) The legal system.

3) Assumptions. 4) Statistical forecasts

Explanation:

Q494) Uniform price is the feature of – Marks : 1.0Id: 44981

Q495) There is relationship between price and quantity supplied of the goods. Marks : 1.0Id: 44946

1) Direct 2) Inverse

Explanation:

3) Constant 4) Fixed

Q496) What is equilibrium price and quantity in the following case? Marks : 1.0Id: 44951

1) 15,40 2) 35, 20

3) 25, 50 4) None of these

Explanation:

Q497) Marginal revenue is equal to Marks : 1.0Id: 44957

1) The change in price divided by change inoutput

2) Change in quantity divided by change in price

3) The change in P*Q due to one unit change inoutput

4) Average price of the goods

Q498) The firm is said to be in equilibrium when – Marks : 1.0Id: 44966

1) It maximizes its profit 2) Demand is equal to supply

3) It minimizes its losses 4) Demand is at its highest point

Explanation:

Q499) Which method of demand forecasting, firms takes all households into consideration? Marks : 1.0Id: 38777

1) Complete enumeration survey method 2) Sales force opening method

3) Delphic method 4) Sample survey method

Q500) A cartel is most likely to occur in Marks : 1.0Id: 45276

1) Perfect competition as firms compete byreducing cost

2) Monopolistic competition where firms colludeto increase profits

Explanation:

3) Monopoly because it faces no competition 4) Oligopoly as firms act together to raise pricesand increase profits

Q501) For the free market to yield optimal results for the production and consumption ofgood X,dam Smith assumed all of the following would have to exist, except possiblyone. The single exception is

Marks : 1.0Id: 45030

1) competition exists in the production of good X. 2) successful government planning is able toinform businesses how much of good Xconsumers demand.

3) no externalities exist in the production orconsumption of good X.

4) consumer sovereignty exists.

Explanation:

Q502) Freedom of choice is the feature of Marks : 1.0Id: 44840

3) Mixed economy 4) Planning economy

Q503) The Definition that Economics is concerned with an enquiry into the nature andcauses of wealth of nations is given by:

Marks : 1.0Id: 45114

1) Carl Marx 2) Adam Smith

3) J. E. Cairens 4) Keynes

Explanation:

Q504) A movement along the same demand curve for Samsung mobile is best described as–

Marks : 1.0Id: 44900

1) An increase in demand 2) A decrease in demand

3) A change in quantity demanded 4) A change in demand

Q505) The invisiblehand concept suggests that: Marks : 1.0Id: 45144

Explanation:

1) Market failures imply the need for a nationaleconomic plan

2) Big businesses are inherently more efficientthan small businesses

3) The competitiveness of a capitalistic marketeconomy invariably diminishes over time

4) Assuming competition, private and publicinterests will coincide

Q506) The price elasticity of demand for addictive products like cigarettes and alcoholwould be:

Marks : 1.0Id: 45236

1) Infinity 2) Less than 1

3) Greater than 1 4) Zero

Explanation:

Q507) Factor that will determine whether advertising by manufacturer will lead to highersales

Marks : 1.0Id: 45011

1) If demand is elastic 2) If demand is inelastic

3) The product can be differentiated 4) The product is branded

Q508) Perfectly competitive firm can sell all output it wants to Marks : 1.0Id: 45192

Explanation:

1) By cutting down supply of output 2) By lowering the price it charges to eachadditional unit produced

3) By lowering its costs of production 4) Without lowering the price

Q509) Indian railway is the example of – Marks : 1.0Id: 45006

1) Monopoly 2) Oligopoly

3) Perfect competition 4) Duopoly

Explanation:

Q510) If the proportion of income spent on a good increase as a income increases , then theincome elasticity for that good is –

Marks : 1.0Id: 44917

3) Greater than zero 4) Less than zero

Q511) The quantity supplied of X and the price of X are related. Marks : 1.0Id: 45201

1) Positively. 2) Negatively.

3) Directly. 4) Indirectly.

Explanation:

Q512) Generally the demand curve – Marks : 1.0Id: 44928

1) A slope downward from left to right 2) A slope upward from left to right

3) Has Negative slope 4) Both a and c

Q513) Under perfect competition a firm can produce with Marks : 1.0Id: 44993

1) An optimum plant 2) An optimum output

Explanation:

3) Maximum profit 4) Identical product at low cost

Q514) A market can accurately be described as Marks : 1.0Id: 45137

1) A place to buy things 2) A place to sell things

3) The process by which prices adjust toreconcile the allocation of resources

4) A place where buyers and sellers meet

Explanation:

Q515) Opportunity cost is Marks : 1.0Id: 45083

1) a cost that cannot be avoided, regardless ofwhat is done in the future

2) that which we forgo, or give up, when we makea choice or a decision

3) the cost incurred in the past before we make adecision about what to do in the future.

4) the additional benefit of buying an additionalunit of a product

Q516) Increase in consumer’s income leads in the demand for inferior goods to Marks : 1.0Id: 45271

1) increase 2) decrease

3) remains constant 4) none of the above

Explanation:

Q517) The assumptions that there are a large number of sellers and product homogeneity,in perfect competition it implies that all individual firms are _________:

Marks : 1.0Id: 45240

1) Price movers 2) Price Takers

3) Price givers 4) Price offers

Q518) Economic profit equals: Marks : 1.0Id: 45163

1) Normal profit plus opportunity costs 2) Business profit minus implicit costs

3) Business profits plus implicit costs 4) Normal profits minus opportunity costs

Explanation:

Q519) To study an individual consumer’s behaviour, we need: Marks : 1.0Id: 45109

3) Micro and Macro Both 4) Consumer behaviour science

Q520) Price discrimination means Marks : 1.0

Explanation:

Id: 45007

1) Charge different price from different buyer fordifferent product

2) Charge different price from different buyer forsame product

3) Charge different price from different seller forsame product

4) Charge same price from different buyer forsame product

Q521) A market structure in which many firms sell products that are similar but not identicalis known as –

Marks : 1.0Id: 44975

Explanation:

Q522) Principal agent problem reflects differences in the objectives Marks : 1.0Id: 45286

1) Owner and Manager _x000D_ b) d) 2) Manager and employees

3) Owner and board of directors 4) Employees and customers _x000D_

Q523) A movement along the demand curve to the left may be caused by: Marks : 1.0Id: 38748

Explanation:

1) a fall in the number of substitute goods. 2) a rise in the price of inputs.

3) a decrease in supply. 4) a rise in income.

Q524) Invisible hand theory is given by Marks : 1.0Id: 44845

1) Samuelson 2) Adam smith

Explanation:

Q525) Which of the following is not the factor which determine the demand Marks : 1.0Id: 44888

1) Level of income 2) Price

3) Supply 4) Fashion

Q526) It is a theoretical measure and denotes the "right" level of profit a business canachieve

Marks : 1.0Id: 45095

1) Optimum Profit 2) Economic Profit

3) Economic Rent 4) Accounting Profit

Explanation:

Q527) Expansion and contraction occurs due to Marks : 1.0Id: 44896

1) Change in the price of goods concerned 2) Change in the level of income of people

3) Change in the population 4) Change in price of substitute goods

Q528) Which of the following curve is never U shaped? Marks : 1.0Id: 44962

1) Marginal cost 2) Average variable cost

3) Average total cost 4) Average fixed cost

Explanation:

Q529) The quantity demanded of X and the price of X are related. Marks : 1.0Id: 45219

1) Positively. 2) Negatively.

3) Directly 4) Indirectly

Q530) All of the following are determinants of demand except: Marks : 1.0

Explanation:

Id: 45241

1) Price 2) Supply

3) Tastes 4) Price of other goods

Q531) Cost is also known as imputed cost. Marks : 1.0Id: 44842

1) Opportunity 2) Marginal

3) Total 4) Historical

Explanation:

Q532) Based on the Law of demand, quantity demanded is _________ related to price: Marks : 1.0Id: 45208

1) Directly 2) Positively

3) Inversely 4) Actually

Q533) Income elasticity for luxurious goods is Marks : 1.0Id: 44918

1) Less than zero 2) Greater than zero

3) Less than one 4) Greater than one

Explanation:

Q534) When we analyse the problems of economy as a whole it is a study of: Marks : 1.0Id: 45108

3) Micro and Macro both 4) None of these

Q535) It is also known as Prescriptive Economics Marks : 1.0Id: 45033

1) Positive Economics 2) Micro economics

Explanation:

3) Normative economics 4) Economics

Q536) The opportunity cost of a good is Marks : 1.0Id: 45136

1) The time lost in finding it 2) The quantity of other goods sacrificed to getanother unit of that good

3) The expenditure on the good 4) The loss of interest in using savings

Explanation:

Q537) If the demand curve shift from left to right then it is called as Marks : 1.0Id: 44897

1) Increase in demand 2) Decrease in demand

3) Expansion in demand 4) Contraction in demand

Q538) First condition of equilibrium is MC = MR and second condition is shouldcut from .

Marks : 1.0Id: 45005

1) MC curve, MR curve, above 2) MC curve, MR curve, below

3) MR curve, MC curve, below 4) MR curve, MC curve, above

Explanation:

Q539) Basic price – Marks : 1.0Id: 45087

1) Is the valuation of the product of the firm 2) Is the determination of cost of product of thefirm

3) Is the determination of the companies pricelevel

4) Is a cost price

Explanation:

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