Home
Current Affairs January 2024

What is the correct answer?

4

The cobweb model will divergent 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

Correct Answer :

B. Supply curve is more than demand curve


Related Questions

What is the correct answer?

4

If the demand curve is horizontal then its slope is:

A. Infinite

B. Zero

C. Equal to one

D. None of the above

What is the correct answer?

4

If less is demanded at the same price or same quantity demanded at a lower price, it is a case of:

A. Contraction of demand

B. Decrease in demand

C. Increase in demand

D. Extension of demand

What is the correct answer?

4

The game theory concentrates on:

A. Gaming

B. Strategic decisions

C. Both a and b

D. None of the above

What is the correct answer?

4

The game theory was basically presented by:

A. Ricardo

B. Marshal

C. Neomann and Morgenstern

D. Karl Marx

What is the correct answer?

4

A firm can never produce in the middle area of input space, in case of:

A. Concave isoquant

B. Convex isoquant

C. Constant isoquant

D. None of the above

What is the correct answer?

4

The main contribution of Prof. R.G.D.Allen is in the field of:

A. fixation of price

B. Arc elasticity of demand

C. Cross elasticity of demand

D. Wage theory

What is the correct answer?

4

The law of Diminishing Marginal Utility implies that the marginal utility of a good decreases as:

A. It gets more expensive

B. A household consumes more of it

C. Preference changes

D. A households income goes up

What is the correct answer?

4

The alternative of profit maximization theory is:

A. Cost maximization

B. Product maximization

C. Revenue maximization

D. None of the above

What is the correct answer?

4

In monopolistic competition, the cost curves of all firms are:

A. Uniform

B. Different

C. Dependent

D. Independent

What is the correct answer?

4

The short run cost curve is U shaped because of:

A. The operation of increasing cost

B. The existence of fixed cost

C. The existence of variable cost

D. All of the above

What is the correct answer?

4

Utility is a function of:

A. Price

B. Quantity

C. Supply

D. Demand

What is the correct answer?

4

The reaction curve of a firm is attained by joining the:

A. Isoprofit curve

B. Super profit curve

C. Normal profit curve

D. Indoprofit curve

What is the correct answer?

4

The production function can convey to a firm:

A. The cost of producing any given output

B. The various combinations of input that could be employed in production of any given quantity of output

C. The various combinations of input that should be used in producing any given quantity of output in an efficient manner

D. The maximum profit level of output

What is the correct answer?

4

Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw materials

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

What is the correct answer?

4

If a straight line supply curve makes an intercept on the Y-axis, elasticity of supply is:

A. Equal to unity

B. Less than unity

C. More than unity

D. Zero

What is the correct answer?

4

In substitution effect and income effect:

A. The substitution effect is more certain

B. The income effect is more certain

C. The substitution effect is uncertain

D. The income effect is always positive

What is the correct answer?

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

What is the correct answer?

4

A demand curve which is horizontal and parallel to x-axis represents:

A. Infinitely elastic demand

B. Infinitely inelastic demand

C. Relatively elastic demand

D. Relatively inelastic demand

What is the correct answer?

4

The word ECONOMICS is derived from the Greek terms meanings:

A. Political economy

B. Household Management

C. Production and consumption

D. Financial Accounting

What is the correct answer?

4

In centralized cartel, the firms are like:

A. Price takers

B. Price setters

C. Price discriminators

D. None of the above

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

Marginal Productivity Theory deals with the theory of:

A. Distribution

B. Exchange

C. Market structure

D. Consumer behaviour

What is the correct answer?

4

Diminishing returns occur when a firm:

A. Starts incurring losses

B. Uses more and more of one input while holding all other inputs constant

C. Does not utilize its inputs efficiently

D. Cuts down on the quantity of all inputs it uses

What is the correct answer?

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

What is the correct answer?

4

When the output of a firm is increasing, its average fixed cost:

A. Declines continuously

B. Remains constant

C. Rises continuously

D. Declines and then rises

What is the correct answer?

4

Income-elasticity of demand is expressed as:

A. % change in quantity demanded % change in income

B. % change in income % change in quantity demanded

C. Change in income Change in quantity demanded

D. None of the above

What is the correct answer?

4

Under perfect competition, a firm will be in equilibrium if:

A. MC = MR

B. MC cuts the MR from below

C. MC rises when it cuts the MR

D. All the above three conditions are fulfilled

What is the correct answer?

4

Which one of the following is also known as Plant Curves:

A. Long-run average cost (LAC) curves

B. Short-run average cost (SAC) curves

C. Average variable cost (AVC) curves

D. Average total cost (ATC) curves

What is the correct answer?

4

When income of the consumer increases then demand curve of an inferior good:

A. Shifts rightward

B. Shifts leftward

C. Does not shift

D. None of the above

What is the correct answer?

4

The production possibility curve (PPC) is concerned with:

A. Resources of the economy

B. Interests of the economy

C. Limitations of the economy

D. Qualities of the economy