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4

The demand of the necessities is:

A. More elastic

B. Less elastic

C. Unit elastic

D. Zero elastic

Correct Answer :

B. Less elastic


Related Questions

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4

The products, under monopolistic competition are differentiated, yet they are:

A. Complements

B. Close substitutes

C. Both a and b

D. None of the above

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4

A firm in a position of equilibrium is supposed to be maximizing:

A. Output

B. Sales

C. Profits

D. None of the above

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4

Labor Saving 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

Law of Variable Proportions is regarding in:

A. Short-Run

B. Long-Run

C. Medium-Run

D. None of the above

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4

The demand for cigarettes is price inelastic implying a unit tax on this commodity will

A. Will mainly paid by sellers of the product

B. By mainly paid by cigarette smokers

C. Be mainly paid by tobacco growers

D. None of the above

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4

In monopolistic competition, if a firm lowers its price, the rival firms will:

A. Also lower their prices

B. Increase their prices

C. Show no reaction

D. None of the above

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4

An indifference curve normally slopes downward from:

A. Left to right

B. Right to left

C. Both of them

D. None of them

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4

A fall in demand for the product under monopolistic competition will likely result in:

A. A fall in price

B. A decrease in the number of firms in the long-run

C. A decrease in the output of each firm

D. All of the above

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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

Which of the following is not a U shaped curve:

A. Marginal cost curve

B. Average variable cost curve

C. Fixed cost curve

D. Average cost curve

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4

When elasticity of demand is less than one (e<1), then following the formula MR=P[1-1/e], the MR will:

A. Positive

B. Negative

C. Zero

D. None of the above

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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

While buying two goods X and Y with unequal prices, to maximize total utility from his income, a consumer should get:

A. Equal MU from both commodities X and Y

B. More MU from commodity X than from commodity Y

C. More MU from commodity Y than from commodity X

D. Equal marginal utility from the last rupee spent on commodity X and commodity Y

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4

A firm considering what type of new plant to build is involved in a:

A. Immediate-run decision

B. Market period decision

C. Short-run decision

D. Long-run decision

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4

The market demand shedule is determined by:

A. Adding up the prices consumers are wiling to pay at each quantity demanded

B. Multiply each consumers demand curve by the total number of consumers in the market

C. Adding the quantities denmanded by all consumers at each alternative price

D. None of the above

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4

The right of individuals to control productive resources is known as:

A. Monopoly

B. Private property

C. Workable competition

D. Oligopoly

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4

Dumping is international discriminating:

A. Monopoly

B. Oligopoly

C. Duopoly

D. None of the above

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4

Regarding economic decisions, economics of uncertainty identifies:

A. No risks

B. Risks

C. Safety

D. None of the above

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4

Under monopolistic competition, the products sold by the firms are:

A. Economic substitutes

B. Technical substitutes

C. Both a and b

D. None of the above

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4

Which is the first-order condition for the profit of a firm to be maximum?

A. AC=MR

B. MC=MR

C. MR=AR

D. AC=AR

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4

The cost of production is faced by a:

A. Producer

B. Consumer

C. Seller

D. Firm

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4

Change in demand (rise and fall of demand) is:

A. Due to change in price while other factors remain constant

B. Due to change in factors other than price

C. Both a and b

D. None of the above

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4

Which of the following theories of trade cycle was presented by William Jevons?

A. Sunspot Theory

B. Monetary Theory

C. Saving-Investment Theory

D. Innovation Theory

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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

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

A. Negative

B. Positive

C. Infinite

D. Zero

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4

Formulation of an economic theory involves:

A. Statements of various assumptions or postulates

B. Logical deductions from the assumptions made

C. Testing the hypothesis against empirical evidence

D. All of the above

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4

The kink demand curve faced by an oligopolist is based on the assumption that:

A. Competitors will follow a price increase but not a price cut

B. Competitors will follow a price increase as well as a price cut

C. Competitors will ignore both a price increase and a price cut

D. Competitors will ignore a price increase but will follow a price cut

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4

Income-demand curve shows:

A. Income-expenditure relationship

B. Income-cost relationship

C. Income-price relationship

D. Income-quantity relationship

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4

Which of the following oligopoly models is concerned with the maximization of joint profits?

A. Price leadership model

B. Bertrands model

C. Collusive model

D. Edgeworths model

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4

If the commodity is inferior then the Income Effect (I.E) and the Substitution Effect (S.E):

A. Both move together and reinforce each other

B. One moves and the other remains constant

C. Move in the opposite direction and neutralize each other

D. Both remain constant