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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

Correct Answer :

C. It is based on assumptions which are unreal


Related Questions

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4

The economic problem of determining the combination of inputs yielding lowest cost for producing a given output:

A. Is only a choice among the technologically efficient combination

B. Depends on the relative price of inputs

C. Depends on the price of the product

D. Depends on the profits made

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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 Input-Output Analysis was originated by:

A. W.W. Leontief

B. E.D.Domar

C. R.G.D.Allen

D. J.M.Keynes

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4

Which of the following is called Gossens first law?

A. Law of production

B. The Law of Equi-Marginal Utility

C. The Law of Diminishing Marginal Utility

D. Law of Variable Proportions

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4

Conditions of perfect competition ensure:

A. That each firm can influence the price

B. No single firm can influence the price

C. Any single firm can influence the supply condition in the market

D. Any single firm can influence both supply and price in the market

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4

The Chamberline model recognizes mutual:

A. Independence of firms

B. Interdependence of firms

C. Independence of individuals

D. Interdependence of materials

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4

In long run competitive equilibrium:

A. Every firm will earn economic profit

B. Every firm will incur losses

C. Every firm will earn only normal profit

D. The marginal firm will earn no profit

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4

In perfect competition, the slope of the total revenue curve of a firm is equal to the:

A. Market price

B. AVC

C. TFC

D. AFC

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4

Which of the following is not a characteristic of a perfectly competitive market?

A. There is perfect information about prices

B. All participants in the market are small relative to the size of the overall market

C. There are many buyers and sellers

D. Buyers and sellers do not know each other

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4

If two goods are complements then indifference curve (IC) will be:

A. Straight line

B. Convex to origin

C. Concave to origin

D. Lshaped

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4

In case of monopoly, the price charged against the additional unit is:

A. Not different

B. Same

C. Not same

D. Zero

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4

Price discrimination is possible:

A. Only under monopoly situation

B. Under any market form

C. Only under monopolistic competition

D. Only under perfect competition

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4

When the slope of a demand curve is infinite (also known as horizontal demand curve) then elasticity will be:

A. Zero (perfectly inelastic)

B. Equal to one (unitary elastic)

C. Infinite (perfectly elastic)

D. None of the above

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4

Supply curves are most elastic:

A. In the long-run

B. In the short-run

C. For luxuries

D. In the immediate-run

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4

The normal long-run average cost curve is influenced by the:

A. Principle of diminishing returns

B. Economies and diseconomies of large scale production

C. Principle of constant return to scale

D. All of the above

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4

Under perfect competition, the average revenue, marginal revenue and price are shown:

A. By a same single curve

B. By three different curves

C. By downward sloping curve

D. None of the above

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4

According to critics, the assumption of costless production is:

A. true

B. not true

C. reliable

D. deniable

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4

Demand for a commodity is elastic when it has

A. Only one use

B. Many uses

C. Uses which cannot be postponed

D. Uses very essential for the consumer

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4

Chamberline introduces the concept of:

A. V-shaped selling cost

B. U-shaped selling cost

C. V-shaped purchasing material

D. U-shaped purchasing material

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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

If the demand for good is more elastic and government levied a tax per unit of output, the price per unit for the firm would:

A. Rise by the amount of the tax

B. Rise by more than the amount of the tax

C. Rise by less than the amount of the tax

D. Remain the same

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4

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

A. Friends

B. Relatives

C. Family

D. All of them

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4

Income -elasticity of demand will be zero when a given change in income brings about:

A. A less than proportionate change in quantity demanded

B. A more than proportionate change in quantity demanded

C. The same proportionate change in quantity demanded

D. No change in quantity demanded

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4

The basic and essential economic problems in a community are related to choice and:

A. Freedom

B. Scarcity

C. Social class

D. Politics

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4

In case of income effect, the level of consumers satisfaction rises when:

A. Income rises

B. Income falls

C. Sales rises

D. Price falls

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4

Under monopolistic competition, the firms compete alongwith:

A. Supreme powers

B. Discretionary powers

C. Low powers

D. None of the above

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4

The necessary condition of firms equilibrium requires:

A. dR/dQ + dC/dQ = 0

B. dR/dQ - dC/dQ = 0

C. dC/dQ - dR/dQ = 0

D. dR/dQ > dC/dQ > 0

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4

Utility is a function of:

A. Price

B. Quantity

C. Supply

D. Demand

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4

For the given production function, technical inefficiency is defined as:

A. Sets of points relating production function that maximizes output given input (labor) i.e. Q = f(L, K)

B. Sets of points relating production function that produces less output than possible for a given set of input (labor) i.e. Q < f(L, K)

C. Use of imported technology

D. None of the above

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4

In Revealed Preference Theory, a consumer reveals preference for bundle of:

A. Two goods

B. A few goods

C. One good

D. Many goods