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4

The budget constraint can be written as:

A. X.PX + Y.PY = 1

B. X.PX + Y.PY < 1

C. X.PX + Y.PY > 1

D. X.PX + Y.PY = 0

Correct Answer :

A. X.PX + Y.PY = 1


Related Questions

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4

The CES production function shows:

A. Decreasing return to scale

B. Increasing return to scale

C. Constant return to scale

D. None of the above

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4

Gold is bought and sold in a:

A. Perfectly competitive international market

B. Perfectly competitive national market

C. Imperfect international market

D. Imperfect national market

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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

In constant sum game (zero sum game), if there are two parties then:

A. Both parties make better-off

B. Both parties make worse-off

C. Both parties become Neutral

D. One party can become better off only if another is made worse off

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4

In the case where two commodities are good substitutes then cross elasticity will be:

A. Positive

B. Unitary

C. Negative

D. Infinite

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4

The partial equilibrium model keeps other things:

A. Variable

B. Constant

C. Increasing

D. Decreasing

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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

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4

An increase in the price of the good measured on the horizontal axis causes:

A. The budget line to get steeper

B. The budget line to shift parallel to the right

C. The indifference curve to shift up

D. The budget line to get flatter

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4

The falling part of total Utility (TU) curve shows:

A. Increasing marginal utility

B. Decreasing marginal utility

C. Zero marginal utility

D. Negative marginal utility

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4

When the law of demand operates the demand curve:

A. Slopes downward

B. Slopes upward

C. Becomes horizontal

D. Becomes vertical

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4

Which of the following curves is a rectangular hyperbola?

A. ATC

B. AVC

C. AFC

D. None of the above

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4

To get more revenue, a Finance Minister impose tax on that commodity which has:

A. Inelastic demand

B. Elastic demand

C. Unit elasticity

D. Zero elasticity

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4

LMC represents change in LTC (long-run total cost) due to producing an additional unit of a good while the fixed and variable factors:

A. Cannot be changed

B. Can be changed

C. Can partially be changed

D. None of the above

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4

The supply curve would probably shift to the right if:

A. Resource( factors of production) used in production became more costly

B. The technology of production improves

C. Consumers income increased

D. Some sellers left the market

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4

The alternative of profit maximization theory is:

A. Cost maximization

B. Product maximization

C. Revenue maximization

D. None of the above

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4

The Substitution Effect (S.E) is always:

A. Negative

B. Zero

C. Positive

D. Infinite

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4

A firm under perfect competition has:

A. An AR curve which is a horizontal straight line

B. An AR curve which slopes downward

C. An AR curve which has a kink

D. An AR curve shape of which cannot be predicted

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4

A monopolist:

A. Can not influence the market

B. Can influence the market

C. Is a price taker

D. None of the above

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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

If a good is an inferior good then an increase in incomes of the consumers will:

A. Increase demand for the good

B. Increase supply of the good

C. Reduce the equilibrium price of the good

D. None of the above

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4

A monopoly producer has:

A. Control over production but not over price

B. Control neither on production nor on price

C. Control over consumers

D. Control over production as well as over price

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4

The game theory was basically presented by:

A. Ricardo

B. Marshal

C. Neomann and Morgenstern

D. Karl Marx

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4

When a consumer is satisfied with his spending pattern, he is said to be in:

A. Balance stat

B. Equilibrium

C. Disequilibrium

D. Authenticated form

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4

The marginal revenue of a perfectly competitive firm is:

A. Equal to the prices of its products

B. Positively related to output

C. Negatively related to output

D. Always higher than marginal cost

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4

The cobweb model will convergent when the slope of:

A. Demand curve is more than supply curve

B. Supply curve is more than demand curve

C. Supply curve is equal to demand curve

D. None of the above

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4

According to classical approach, utility can be:

A. Ranked

B. Consumed

C. Expressed in numbers

D. Cannot be expressed in numbers

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4

When total product increases at a decreasing rate:

A. MP = AP

B. MP < AP

C. MP > AP =0

D. MP > AP

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4

Cross-elasticity of demand or cross-price elasticity between two perfect substitutes will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

In terms of price, the indirect utility function may be:

A. Concave

B. Quasi-convex

C. Straight line

D. Convex

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4

A monopolist has control over the price he charges for his product. He will be able to maximize his profit by:

A. Lowering the price, if the demand curve is elastic

B. Lowering the price, if the demand curve is inelastic

C. Rising the price, if the demand curve is elastic

D. None of the above is applicable