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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

Correct Answer :

D. A higher indifference curve


Related Questions

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4

Of the following, which one corresponds to fixed cost?

A. Payments for raw materials

B. Labor cost

C. Transportation charges

D. Insurance premium on property

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4

Which industries spend a relatively large share of their revenue on research and development in order to keep up with their competitors?

A. Grocery stores

B. High-Tech industries

C. Automobiles

D. Construction

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4

Stable cobweb model is a:

A. Simple model

B. Dynamic model

C. Both of them

D. None of them

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4

The cross-price elasticity of the demand for orange juice with respect to the price of apple juice is probably:

A. Negative

B. Positive

C. Near infinite

D. Zero

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4

Each short run average cost curve:

A. Has to touch the long run cost curve

B. Has to cross the long run cost curve

C. Has to lie above all points on the long run cost curve

D. Coincides with the long run cost curve at some point

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4

Under perfect competition, at equilibrium, marginal cost is:

A. Less than marginal revenue

B. Equal to marginal revenue

C. More than marginal revenue

D. None of the above

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4

The Cambridge School of Thought refers to the group of English economists who came under the influence of:

A. Alfred Marshal

B. J.M.Keynes

C. Paul A.Samuelson

D. A.C.Pigou

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4

In discriminating monopoly (price discrimination), the cost of production in two markets are:

A. Different

B. Same

C. Zero

D. None of the above

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4

The firm producing at the minimum point of the AC curve is said to be:

A. Operating under diminishing cost

B. Making optimum use of plant capacity

C. Operating at excess capacity

D. Operating under increasing costs

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4

Identify the author of The Affluent Society?

A. Gunnar Myrdal

B. N.Kaldor

C. A.C.Pigou

D. J.K.Galbraith

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4

In market sharing cartel model, cartel determines the shares of:

A. the individuals

B. industry

C. firms

D. associations

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4

For a few products such as insulin for diabetics,:

A. The demand curve can be upward sloping

B. The price elasticity of demand could be zero

C. The price elasticity of demand could be greater than one

D. None of the above

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4

The external economies of scale experienced by a firm include the:

A. Growth of firms processing its waste materials

B. Development of research bureau serving the industry

C. Supply of suitable skilled labor in the area

D. All of the above

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4

If at the unchanged price, the demand for a commodity goes up, or the quantity demanded remains the same when its price goes up, it is called:

A. Contraction of demand

B. Decrease in demand

C. Increase in demand

D. Extension of demand

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4

If money income is given then consumer is in equilibrium when:

A. MU < P

B. MU >P

C. MU = P

D. MU = 0

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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

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4

Excess capacity is not found under:

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

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4

The point where the supply and demand curves intersect on a graph determines:

A. Market price

B. Equilibrium price

C. Long-term price

D. Short-term price

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4

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

A. Maximum

B. Zero

C. Minimum

D. Equal to one

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4

Which of the following is an implicit cost of production?

A. Wages of the labor

B. Charges of electricity

C. Interest on owned money capital

D. Payment for raw materials

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4

Most of the supply curves with which the average consumer deals are:

A. Vertical

B. Horizontal

C. Controlled by the largest producers

D. Unaffected by inflation

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4

The cost that a firm incurs in purchasing or hiring any factor of production is referred to as:

A. Explicit cost

B. Implicit cost

C. Variable cost

D. Fixed cost

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4

Which of the following formulae explain the term average revenue?

A. Total units /No. of Revenues

B. Total Revenue/No. of Units

C. Marginal Revenue × Units

D. Total Units/ Price

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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

An increase in the supply of a commodity is caused by:

A. Improvements in its technology

B. Fall in the prices of other commodities

C. Fall in the prices of factors of production

D. All of the above

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4

The low cost price leader will charge:

A. higher prices

B. zero prices

C. lower prices

D. specific prices

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4

Increasing returns imply:

A. Constant average cost

B. Diminishing cost per unit of output

C. Optimum use of capital and factor

D. External economies

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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

Under which of the following forms of the market structure does a firm have no control over the price of its product?

A. Monopoly

B. Monopolistic competition

C. Oligopoly

D. Perfect competition

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4

Which of the following is not a property of indifference curve?

A. Convex to the origin

B. Slopes downwards to the right

C. Parallel to each other

D. Cannot intersect each other