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4

All money costs can be regarded as:

A. Social costs

B. Opportunity costs

C. Explicit costs

D. Implicit costs

Correct Answer :

C. Explicit costs


Related Questions

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4

The vertical distance between TVC and TC is equal to:

A. MC

B. AVC

C. TFC

D. AC

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4

In the theory of firm, Chamberline presented the idea of:

A. Rising cost

B. Falling cost

C. Rising input

D. Falling input

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4

If X and Y are close substitutes, a rise in the price of X will lead to:

A. Increase in demand for Y

B. Decrease in demand for Y

C. Decrease in demand for both X and Y

D. No change in demand for Y

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4

In monopoly, when average revenue curve falls:

A. MR constant

B. MR rises

C. MR falls

D. MR is zero

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4

Change in demand (rise and fall of demand) is:

A. Due to change in price while other factors remain constant

B. Due to change in factors other than price

C. Both a and b

D. None of the above

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4

On all points of budget (price) line:

A. Total expenditures increases

B. Total expenditures decreases

C. Total expenditures are zero

D. Total expenditures remain same

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4

Law of variable proportions is based on the assumption of:

A. Short period of time

B. Long period of time

C. Timeless production relationship

D. All of the above

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4

If the price of coffee increases, you would predict that:

A. Demand curve for sugar will shift downward (leftward)

B. Supply curve for sugar will shift leftward (upward)

C. Demand curve for bread will shift downward (leftward)

D. None of the above

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4

If under perfect competition, in the short period, price does not cover the average cost completely, the firm will even then stay in the market as long as:

A. The average fixed cost is covered

B. The average variable cost is covered

C. Some profit is earned

D. The entrepreneurs enjoy producing

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4

The main contribution of Prof. Lord Keynes is in the field of:

A. Determination of the rate of interest

B. Determination of the market price

C. Determination of the wage rate

D. Determination of production of firm

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4

In monopolistic competition, the firm take advantage due to customers:

A. Similar choices

B. Unlimited choices

C. Differential choices

D. Few choices

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4

When in a market, the number of buyers is very large and the number of sellers is very small, it is known as:

A. Monopoly

B. Oligopoly

C. Imperfect competition

D. Perfect competition

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4

The MRTS along an iso-quant goes on to:

A. Appear

B. Diminish

C. Prominent

D. Increase

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4

In monopolistic competition, because of difference in choices, the firm charges:

A. Different prices

B. Similar prices

C. High prices

D. Low prices

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4

If demand is elastic and supply is inelastic then the burden of a tax on the good will be:

A. Borne mostly by producers

B. Borne mostly by consumers

C. Borne mostly by government

D. Shared equally by producers and consumers

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4

The short-run supply curve of the perfectly competitive firm is given by:

A. The rising portion of its MR over and above the break-even (shut-down) point

B. The rising portion of its MC over and above the break-even (shut-down) point

C. The rising portion of its MC over and above the AC curve

D. The rising portion of its MC curve

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4

If a ten percent increase in price causes a ten percent reduction in quantity demanded, elasticity of demand is:

A. Perfectly elastic

B. Elastic

C. Unitary elastic

D. Inelastic

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4

An economic model describing the working of an economy consists of:

A. Functional relationships

B. Family relationships

C. Economic position

D. Stagnant relationships

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4

The minimization of costs subject to output requires equilibrium at the lowest:

A. Isoquant line

B. Isocost line

C. Indifference curve

D. Price line

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4

According to Marshal, the Law of Diminishing Marginal Utility:

A. Applies on both money and other commodities

B. Does not apply on money

C. Does not apply on bank money but applies on cash money

D. Applies on all the commodities except on money

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4

In case of monopoly, both AR and MR fall, but MR falls:

A. Double to that of AR

B. 1/2 to that of AR

C. 2/3 to that of AR

D. Four times to that of AR

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4

Variable cost includes the cost of:

A. Hiring the building for the factory

B. Purchasing heavy machines

C. Paying the manager of the factory

D. Paying the laborers

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4

Implicit costs are the costs:

A. Which are not incurred by the firm and may accrue to the community

B. Of resources the cost of factors owned by the firm

C. Of resources supplied by the household

D. Of government externalities

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4

According to Saint Thomas Aquinas value is determined by God, but prices by:

A. Consumers

B. Employees

C. People

D. Labor

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4

In Edgeworth model, prices oscillate between:

A. Firms and industry price

B. Monopoly and duopoly price

C. Competitive and monopoly price

D. None of the above

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4

The difference between average total cost and average fixed cost shows:

A. Normal profits

B. Implicit costs

C. Variable costs

D. Opportunity costs

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4

In monopoly:

A. The producer will often produce a volume that is less than the amount which would maximize the social welfare.

B. The producer will often produce a volume that is more than the amount which would maximize the social welfare.

C. The consumers will often consume a volume that is more than the amount which would maximize the social welfare.

D. None of the above

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4

The budget-line is also known as the:

A. Iso-utility curve

B. Production possibility line

C. Isoquant

D. Consumption possibility line

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4

The total utility (TU) curve is:

A. Concave to X-axis

B. Convex to X-axis

C. Concave to Y-axis

D. Convex to Y-axis

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4

By increasing the price of its products above those of its competitors, a perfectly competitive seller:

A. Can sell more

B. Reduces its revenues

C. Can sell nothing

D. Increases its revenues