Home
Current Affairs January 2024

What is the correct answer?

4

In case of monopoly, the slope of MR is:

A. Always three times than the slope of AR

B. Always double than the slope of AR

C. Always equal to the slope of AR

D. None of the above

Correct Answer :

B. Always double than the slope of AR


Both MR and AR in monopoly are negatively sloped .The MR curve lies bellow the AR curve and the slope of MR is always double than the slope of AR. We can also say that the MR is twice as steeper as the AR.}

Related Questions

What is the correct answer?

4

The spending of money by the producer to influence consumers is an example of:

A. Derived demand

B. Joint demand

C. Demand creation

D. Compressed demand

What is the correct answer?

4

The long run total cost is attained by:

A. LMC.Q

B. AC.Q

C. LC.Q

D. LAC.Q

What is the correct answer?

4

If the supply and demand increases equally, the price will:

A. Rise

B. Fall

C. Remain unchanged

D. Change depending on respective elasticities

What is the correct answer?

4

At a point below the middle of a straight line demand curve, elasticity of demand is:

A. Less than one

B. Equal to one

C. More than one

D. Equal to infinity

What is the correct answer?

4

A monopoly producer usually earns:

A. Abnormal profits

B. Only normal profits

C. Neither profits nor losses

D. Profits and losses which are uncertain

What is the correct answer?

4

At a point above the middle of a straight line demand curve, elasticity of demand is:

A. Less than one

B. Equal to one

C. More than one

D. Equal to infinite

What is the correct answer?

4

In short run, a firm can change its:

A. Total production

B. Fixed production

C. Variable production

D. None of the above

What is the correct answer?

4

Neutral Technological Progress can be defined as:

A. Technological progress that causes to raise the marginal product of capital and labor in the same proportion

B. Technological progress that causes the marginal product of capital to increase relative to the marginal product of labor

C. Technological progress that causes the marginal product of labor to increase relative to the marginal product of capital

D. None of the above

What is the correct answer?

4

A high value of cross-elasticity indicates that the two commodities are:

A. Very good substitutes

B. Poor substitutes

C. Good complements

D. Poor complements

What is the correct answer?

4

Other things remaining the same, when a consumers income increases his equilibrium point moves to:

A. A lower indifference curve

B. A lower PPC curve

C. Remains on same indifference curve

D. A higher indifference curve

What is the correct answer?

4

In cournot model, during the process of adjustment, the number of firms:

A. Donot change

B. Change

C. Both a and b

D. None of the above

What is the correct answer?

4

The ordinal approach was presented by:

A. Marshal

B. J.R.Hicks

C. Adam smith

D. Rostow

What is the correct answer?

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

What is the correct answer?

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

What is the correct answer?

4

A mixed economy is characterized by the coexistence of:

A. Modern and traditional industries

B. Public and private sectors

C. Foreign and domestic investments

D. Commercial and subsistence farming

What is the correct answer?

4

The market demand for any commodity is the:

A. Average requirement for it in any given place

B. Amount of it wanted at any given price

C. Amount that people would like to buy during a period at different prices

D. Quantity needed to maintain a given standard of living

What is the correct answer?

4

In real life firms:

A. Loss because of past

B. Learn from past

C. Destroy because of past

D. None of the above

What is the correct answer?

4

Law of Substitution in production was presented by:

A. Classical economists

B. Keynes

C. Neo-classical economists

D. Karl Marx

What is the correct answer?

4

The law of variable proportions comes into being when:

A. All factors are variable

B. There is a fixed factor and variable factor

C. All factors are non-variable

D. None of the above

What is the correct answer?

4

Under Bandwagon effects, people use those goods which are used by their:

A. Friends

B. Relatives

C. Family

D. All of them

What is the correct answer?

4

When SAC curve rises, SMC curve lies its:

A. Below

B. Above

C. Equal level

D. None of the above

What is the correct answer?

4

Price is measured in:

A. Physical units

B. Monetary units

C. Constant units

D. Current units

What is the correct answer?

4

Under monopolistic competition, the firms compete alongwith:

A. Supreme powers

B. Discretionary powers

C. Low powers

D. None of the above

What is the correct answer?

4

The cournot model is a model of:

A. Instable equilibrium

B. Stable equilibrium

C. Constant equilibrium

D. Fluctuating equilibrium

What is the correct answer?

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

What is the correct answer?

4

By saying that monopolist create a contrived scarcity, economist mean that monopolist:

A. Restrict output to increase price

B. Produce where MC > P

C. Create a gap b/w quantity demanded and supplied

D. None of the above

What is the correct answer?

4

If the slope of the isoquant is equal to the slope of isocost, then isoquant is:

A. Concave to the origin

B. Convex to the origin

C. Tangent to the origin

D. None of the above

What is the correct answer?

4

The situation in between the extremes of the govt. controlled, planned economy and the perfectly free, unplanned economy is known as:

A. Developed economy

B. Laissez-fair economy

C. Mixed economy

D. Capitalistic economy

What is the correct answer?

4

If a straight line supply curve passes through the point of origin O, the elasticity of supply is:

A. Zero

B. Infinity

C. Unity

D. More than unity

What is the correct answer?

4

If two goods have same marginal utility for a consumer then:

A. He will consume only one of them

B. He will consume equal quantities of them

C. He will be willing to pay the same price for each of them

D. The total utility gained from each of them is equal