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4

The price consumption curve (PCC) for commodity X is the locus of points of consumer equilibrium resulting when:

A. The price of only Y is varied

B. The price of only X is varied

C. The prices of both Y and X are varied

D. None of the above

Correct Answer :

B. The price of only X is varied


Related Questions

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The Prisoners Dilemma was presented by A.W.Tucker in:

A. 1910

B. 1945

C. 1900

D. 1940

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4

According to the principle of substitution?

A. Many goods have no effective substitutes

B. Nearly all goods have substitutes

C. The prices of substitute goods must be the same

D. Buyers will stop buying a good if its price rises

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4

Elasticity (E) expressed by the term, 8 >E>1, is:

A. Perfectly elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unitary elastic

D. Relatively inelasticity (less than one elasticity)

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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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When total product falls:

A. MP is positive

B. MP is negative

C. MP is falling

D. MP is rising

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Marginal Utility (MU) curve is always:

A. Rising

B. Falling

C. Parallel to X-axis

D. Parallel to Y-axis

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4

In monopolistic competition, the customers are attached with one product because of:

A. Product similarity

B. Product differentiations

C. Product inferiority

D. None of the above

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4

The maximization of output subject to cost requires equilibrium at the:

A. Lowest isoquant

B. Lowest isocost line

C. Highest isoquant

D. Highest isocost line

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4

According to Leontief technology, there:

A. Is only one technique of production

B. Are few techniques of production

C. Are many techniques of production

D. Are two techniques of production

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4

The marginal revenues are derivatives of:

A. TR function

B. AR function

C. MR function

D. AP function

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4

Moving down along a linear demand curve:

A. Demand becomes less elastic

B. Elasticity does not change

C. Demand has unitary elasticity

D. Demand becomes more elastic

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4

The Strategy of Economic Development is the work of:

A. S.Kuznets

B. H.Liebenstein

C. A.O.Hirshman

D. Alfred Marshal

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The point on which the average cost is minimum in a firm, short run average cost curve will also be the minimum cost point on the firms long-run average cost curve. This is true:

A. Always

B. Never

C. When LAC is falling

D. Only at that level of output when LAC is at its minimum

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The vertical demand curve for a commodity shows that its demand is:

A. Highly elastic

B. Perfectly inelastic

C. Fairly elastic

D. Moderately elastic

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In cournot model firms:

A. Cannot make price adjustments

B. Can make price adjustments

C. Can adjust number of customers

D. None of the above

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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

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Who introduced the concept of Elasticity of Demand into economic theory?

A. Alfred Marshal

B. Adam Smith

C. Karl Marx

D. George Stigler

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In the long-run:

A. Fixed cost will be greater than variable cost

B. Variable costs will be greater than fixed costs

C. All costs are variable costs

D. All costs are fixed costs

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Marshalls definition of economics was strongly criticised by:

A. Adam Smith

B. Prof.Pigno

C. Prof. Robbins

D. J.B.Clark

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Production function relates:

A. Cost to input

B. Wages to profits

C. Cost to output

D. Inputs to output

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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

The word ECONOMICS is derived from the Greek terms meanings:

A. Political economy

B. Household Management

C. Production and consumption

D. Financial Accounting

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Government planners play a central role in allocating resources:

A. Only under socialism(communism)

B. Only under capitalism

C. Under both (a) and (b)

D. None of the above

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4

Given a U shaped average cost curve, the relationship between average cost and marginal cost is such that marginal cost must always be:

A. Falling when average cost is falling

B. Rising when average cost is falling

C. Falling when average cost is rising

D. Rising when average cost is rising

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Which form of market structure is characterized by interdependence in decision-making as between the different competing firms?

A. Oligopoly

B. Perfect competition

C. Imperfect competition

D. None of the above

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An iso-product (an isoquant) curve slopes:

A. Downward to the left

B. Downward to the right

C. Upward to the right

D. Upward to the left

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The difference between the average total cost and average variable cost as output increases will:

A. Increases

B. Remains the same

C. Diminishes

D. Zero

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Rational economic behavior on the part of the consumer means that he will:

A. Save as much of his income as possible

B. Spend as much of his income as possible

C. Buy everything at the lowest possible price

D. Make wise choices among available economic goods

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Price is measured in:

A. Physical units

B. Monetary units

C. Constant units

D. Current units

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When the demand curve is rectangular hyperbola, it represents:

A. Unitary elastic demand

B. Perfectly elastic demand

C. Perfectly inelastic demand

D. Relatively elastic demand