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4

In sweezy model (kinked demand curve model), the role of MC curve:

A. Can be ignored

B. Cannot be ignored

C. Partially be ignored

D. None of the above

Correct Answer :

A. Can be ignored


Related Questions

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4

In case of economic bads, an IC can be :

A. Sloping downward

B. Sloping upward

C. Positively sloped

D. Negatively sloped

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4

In the long-run:

A. Fixed cost will be greater than variable cost

B. Variable costs will be greater than fixed costs

C. All costs are variable costs

D. All costs are fixed costs

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4

Total utility and price are:

A. Directly related

B. Unrelated

C. Closely related

D. Negatively related

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4

By scarcity the economist means that all goods are scarce relative the peoples:

A. Desire for them

B. Purchases

C. Production

D. Consumption

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4

Law of Diminishing Marginal Utility is practically untrue because:

A. It is given to a lot of criticism

B. It is too difficult to be explained

C. It is based on assumptions which are unreal

D. Economists do not agree on this

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4

Who first used the term Quasi-Rent?

A. David Ricardo

B. Alfred Marshal

C. J.S.Mill

D. Karl Marx

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4

External economies are witnessed in:

A. A rising supply curve

B. A rising demand curve

C. A falling supply curve

D. A falling demand curve

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4

When was Adam Smiths major work An Enquiry into the Nature and Causes of Wealth of Nations published?

A. 1756

B. 1777

C. 1776

D. 1801

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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

Substitution effect means a consumer

A. Shifts away from the commodity the price of which has fallen

B. Shifts in favour of a commodity the price of which has risen

C. Shifts away from a commodity the price of which has risen, in favour of a commodity the price of which has fallen

D. None of the above

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4

If the commodities X and Y are perfect complements then:

A.

B.

C.

D. None of the above

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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

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4

A market-clearing price:

A. Is a disequilibrium price

B. Is an equilibrium price

C. Means a shortage exists as a market is cleared

D. Must be set by the government

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4

The Law of Equi-Marginal Utility states:

A.

B. per income rupee

C.

D.

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4

When total revenues equal to total opportunity cost then the firm will earn:

A. Abnormal profit

B. Zero profit

C. Normal profit

D. Negative profit

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4

Who is the author of Problems of Capital Formation in Underdeveloped Countries?

A. R.Nurkse

B. N.Kaldor

C. S.kuznets

D. Alfred Marshal

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4

With the expansion of output, the short run average cost curve, beyond a point, starts rising because:

A. Average fixed cost increases sharply

B. More production yields lower per unit price

C. The law of variable proportions applies to short run production

D. Sales expenses become much larger

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4

When the income of consumer increases then budget line will:

A. Get steeper

B. Shift parallel to right

C. To get flatter

D. To shift upward

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4

The giffen paradox is an exception to law of:

A. Supply

B. Demand

C. Production

D. Consumption

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4

Rent is a creation of value, not of wealth who made this observation?

A. Adam Smith

B. David Ricardo

C. Alfred Marshal

D. A.C.Pigou

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4

Supply and demand changes have their most rapid impact in:

A. Auction market

B. Contract markets

C. Market for commercial office space

D. Natural gas market

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4

Income distribution effects:

A. The price of complements

B. The price of substitutes

C. The market demand for commodities

D. The individuals scale of performances

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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

MC curve is:

A. L-shaped

B. U-shaped

C. V-shaped

D. Both a and b depending on situation

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4

The study of economics just in theoretical way is called:

A. Positive Economics

B. Normative Economics

C. Micro Economics

D. Development Economics

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4

The consumer is in equilibrium at the where:

A. Budget line and indifference curve intersect each other

B. Budget line and indifference curve are tangent to each other

C. Budget line and indifference curve are opposite to each other

D. Budget line and indifference curve are parallel to each other

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4

Returns to scale is a:

A. Timeless phenomenon

B. Short run phenomenon

C. Long run phenomenon

D. None of the above

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4

The firms in non-cooperative games:

A. Enforce contracts

B. Make contracts

C. Make negotiations

D. Do not make negotiations

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4

If the price of a product falls then quantity demanded tends to increase ceteris paribus because:

A. The MU/P ratio has decreased

B. Of the income and substitution effects

C. Consumers tend to feel poorer when prices fall

D. When price falls the demand curve shifts right

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4

Which of the following is assumed to be constant when a supply curve is drawn:

A. Technology

B. Number of buyers in the market

C. Consumer income

D. Household tastes