Home
Current Affairs January 2024

What is the correct answer?

4

If the increase in demand is more than the increase in supply, the price will:

A. Rise

B. Fall

C. Remain the same

D. None of the above

Correct Answer :

A. Rise


Related Questions

What is the correct answer?

4

A loss bearing firm will continue to produce in the short run so long as the price at least covers:

A. Average variable cost

B. Average fixed cost

C. Average variable cost + average fixed cost

D. Marginal costs

What is the correct answer?

4

Each firm in cournot model assumes that its competitor will:

A. change its output

B. not change its output

C. change its price

D. not change its price

What is the correct answer?

4

The Prisoners Dilemma was presented by A.W.Tucker in:

A. 1910

B. 1945

C. 1900

D. 1940

What is the correct answer?

4

The short-run periods in monopolistic competition are:

A. Parallel to each other

B. Dependent upon each other

C. Independent of each other

D. Zero

What is the correct answer?

4

Equilibrium of a firm represents maximization of profits as well as:

A. Maximization of losses

B. Minimization of losses

C. Minimization of profits

D. None of the above

What is the correct answer?

4

Which one of the following is also known as Plant Curves:

A. Long-run average cost (LAC) curves

B. Short-run average cost (SAC) curves

C. Average variable cost (AVC) curves

D. Average total cost (ATC) curves

What is the correct answer?

4

Diseconomies of management lead to:

A. Decreasing returns to scale

B. Constant returns to scale

C. Increasing returns to scale

D. maximum returns to scale

What is the correct answer?

4

If the commodities X and Y are perfect substitutes then:

A.

B.

C. >

D. None of the above

What is the correct answer?

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

What is the correct answer?

4

The Purchasing Power Parity (PPP) Theory is presented by:

A. J.M.Keynes

B. E.D.Domar

C. Adam Smith

D. Gustav Cassel

What is the correct answer?

4

The alternative of profit maximization theory is:

A. Cost maximization

B. Product maximization

C. Revenue maximization

D. None of the above

What is the correct answer?

4

The MC curve cuts the AVC and ATC curves:

A. At different points

B. At the falling parts of each

C. At their respective minimums

D. At the rising parts of each

What is the correct answer?

4

Elasticity of Substitution (s) is defined as:

A. Percentage change in capital-labor ratio dividing by percentage change in

B. Percentage change in dividing by percentage change in capital-labor ratio

C. Percentage change in inputs dividing by percentage change in outputs

D. None of the above

What is the correct answer?

4

The main objective of the firm is to:

A. Face losses

B. Avoid losses

C. Bear losses

D. Make economic decisions

What is the correct answer?

4

To attain maximum profits during short-run a firm should produce the output that will:

A. Yield maximum total revenue

B. Minimize marginal cost

C. Maximize marginal cost

D. Equate marginal revenue with marginal cost

What is the correct answer?

4

Average cost means:

A. Cost of the average units

B. Cost of the last units of average

C. Cost of the unit of production

D. Total cost marginal cost

What is the correct answer?

4

The optimal strategy for a player is termed as:

A. Recessive strategy

B. Dormant strategy

C. Dominant strategy

D. Hidden strategy

What is the correct answer?

4

According to Chamberline, in monopolistic competition, differentiation is determined by:

A. Choices

B. Preferences

C. Both a and b

D. None of the above

What is the correct answer?

4

Extension (expansion) and contraction of demand are result of:

A. Change in consumers income

B. Change in consumers tastes

C. Change in price

D. None of the above

What is the correct answer?

4

Total variable costs in equation form are:

A.

B.

C.

D.

What is the correct answer?

4

The imaginary differentiation is attributed to difference in:

A. Style

B. Salesmanship

C. Locality

D. All of these

What is the correct answer?

4

Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw materials

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

What is the correct answer?

4

When marginal costs curve cuts average costs curve, average costs are:

A. Maximum

B. Zero

C. Minimum

D. Equal to one

What is the correct answer?

4

Capital and Development Planning is the work of:

A. S.Chakravarty

B. J.S.Mill

C. A.C.Pigou

D. F.W.Taussig

What is the correct answer?

4

The difference between the average total cost and average variable cost as output increases will:

A. Increases

B. Remains the same

C. Diminishes

D. Zero

What is the correct answer?

4

Under the law of variable proportions, the average and the marginal product of the variable factor would ultimately:

A. Become equal

B. Decrease

C. Become constant

D. Increase

What is the correct answer?

4

In Revealed Preference Theory, Samuelson proves P.E = S.E + I.E :

A. With using indifference curves

B. With using MRS

C. Without using indifference curve

D. None of the above

What is the correct answer?

4

Which of the following goods is most likely to be exchanged in a market of local rather than national scope?

A. University professors

B. Computer components

C. Building materials

D. Jet airplanes

What is the correct answer?

4

Marginal cost curve cuts the average cost curve:

A. At the left of its lowest point

B. At its lowest point

C. At the right of its lowest point

D. None of the above

What is the correct answer?

4

The right of individuals to control productive resources is known as:

A. Monopoly

B. Private property

C. Workable competition

D. Oligopoly