Curvature of PPF is due to……… (a) Increase in opportunity cost ; (b) Decrease in opportunity cost ; (c) Fall in demand; (d) Fall in supply

Curvature of PPF is due to……… (a) Increase in opportunity cost ; (b) Decrease in opportunity cost ; (c) Fall in demand; (d) Fall in supply 
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1 Answer

Answer :

(a) Increase in opportunity cost ; 
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PPF is negative sloped due to (a) Scarcity of production resources ; (b) Unlimited wants ; (c) Improvement in technology; (d) Increasing opportunity cost

Description : PPF is negative sloped due to (a) Scarcity of production resources ; (b) Unlimited wants ; (c) Improvement in technology; (d) Increasing opportunity cost 

Last Answer : (a) Scarcity of production resources ; 

Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on (a) Increase in GDP ; (b) Inflationary pressure ; (c) Greater employment opportunity; (d) More equitable distribution of income and wealth

Description : Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on (a) Increase in GDP ; (b) Inflationary pressure ; (c) Greater employment opportunity; (d) More equitable distribution of income and wealth 

Last Answer : (b) Inflationary pressure ;

Change in cost of production of the concerned goods causes (a) The demand curve to shift ; (b) The supply curve to shift ; (c) Increase in quantity demanded; (d) Decrease in quantity supplied

Description : Change in cost of production of the concerned goods causes (a) The demand curve to shift ; (b) The supply curve to shift ; (c) Increase in quantity demanded; (d) Decrease in quantity supplied 

Last Answer : (b) The supply curve to shift ;

If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price (a) will increase and quantity will increase ; (b) will increase and quantity will decrease; (c) will decrease and quantity will decrease ; (d) will decrease and quantity will increase

Description : If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price (a) will increase and quantity will increase ; (b) will increase and quantity will decrease; (c) will decrease and quantity will decrease ; (d) will decrease and quantity will increase

Last Answer : (a) will increase and quantity will increase ;

Two Commodities X and UY can be inferred as complementary to each other if (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one leads to decrease in demand of other and vice versa (c) Fall in price of one lead to fall in demand of other one (d) Increase in price of one leads to increase in demand of other one

Description : Two Commodities X and UY can be inferred as complementary to each other if (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one leads to decrease ... in demand of other one (d) Increase in price of one leads to increase in demand of other one

Last Answer : (b) Increase in price of one leads to decrease in demand of other and vice versa 

Two commodities X and Y goods can be inferred as close substitute of each other if – (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one leads to decrease in demand of other and vice versa (c) Fall in price of one lead to fall in demand of other one (d) Increase in price of one leads to increase in demand of other one

Description : Two commodities X and Y goods can be inferred as close substitute of each other if - (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one ... fall in demand of other one (d) Increase in price of one leads to increase in demand of other one

Last Answer : (a) Increase in price of one leads to increase in demand of other and vice versa 

Shift in Demand curve or change in Demand curve occurs due to (a) Increase in price ; (b) Decrease in cost of production ; (c) Change in Cetris paribus conditions ; (d) All the three

Description : Shift in Demand curve or change in Demand curve occurs due to (a) Increase in price ; (b) Decrease in cost of production ; (c) Change in Cetris paribus conditions ; (d) All the three

Last Answer : (c) Change in Cetris paribus conditions ;

Cost push inflation arises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in price of precious metal

Description : Cost push inflation arises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in price of precious metal

Last Answer : (a) Persistent rise in factor cost ;

Demand pull inflation rises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in Price of precious metal

Description : Demand pull inflation rises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in Price of precious metal

Last Answer : ; (b) Mismatch between demand and supply of commodities

Any point beyond PPF curve can be attained by (a) Increasing supply of factor inputs ; (b) Technological innovation ; (c) Both ; (d) None

Description : Any point beyond PPF curve can be attained by (a) Increasing supply of factor inputs ; (b) Technological innovation ; (c) Both ; (d) None

Last Answer : ; (c) Both ;

Any point beyond PPF is (a) Attainable ; (b) Unattainable ; (c) Attainable with increase in production facilities ; (d) None

Description : Any point beyond PPF is (a) Attainable ; (b) Unattainable ; (c) Attainable with increase in production facilities ; (d) None

Last Answer :  (c) Attainable with increase in production facilities

If production possibility frontier is linear it implies (a) Constant opportunity cost ; (b) Economy is stagnant; (c) Underemployment of factor of production ; (d) With the increase in production, opportunity cost also increases

Description : If production possibility frontier is linear it implies (a) Constant opportunity cost ; (b) Economy is stagnant; (c) Underemployment of factor of production ; (d) With the increase in production, opportunity cost also increases

Last Answer : (a) Constant opportunity cost 

The price of Ford automobiles increases and the price of Chevrolets remains constant, the demand for Chevrolets will (a) increase ; (b) decrease ; (c) decrease then increase ; (d) increase then decrease

Description : The price of Ford automobiles increases and the price of Chevrolets remains constant, the demand for Chevrolets will (a) increase ; (b) decrease ; (c) decrease then increase ; (d) increase then decrease

Last Answer : (a) increase ;

Simultaneous increase in demand and quantity supplied will (a) Increase in equilibrium price and quantity ; (b) Decrease equilibrium price and quantity (c) Increase equilibrium price but decrease quantity ; (d) Decrease equilibrium price but increase quantity

Description : Simultaneous increase in demand and quantity supplied will (a) Increase in equilibrium price and quantity ; (b) Decrease equilibrium price and quantity (c) Increase equilibrium price but decrease quantity ; (d) Decrease equilibrium price but increase quantity

Last Answer : (a) Increase in equilibrium price and quantity ;

If price of Choco bar decreases we except (a) The quantity demanded to increase ; (b) Quantity demanded to decrease; (c) Demand curve to shift left ; (d) No change in quantity demanded

Description : If price of Choco bar decreases we except (a) The quantity demanded to increase ; (b) Quantity demanded to decrease; (c) Demand curve to shift left ; (d) No change in quantity demanded

Last Answer : (a) The quantity demanded to increase ; 

A goods can be considered a normal goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

Description : A goods can be considered a normal goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

Last Answer : (a) An increase in demand ;

A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

Description : A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

Last Answer : ; (c) Decrease in demand ;

If price of Tea increases the demand of coffee will (a) Increase ; (b) Decrease ; (c) Remain same ; (d) Cannot say

Description : If price of Tea increases the demand of coffee will (a) Increase ; (b) Decrease ; (c) Remain same ; (d) Cannot say

Last Answer : (a) Increase

If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price (a) 19 increase ; (b) 19% decrease ; (c) 20.95% increase ; (d) 20.6% decrease

Description : If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price (a) 19 increase ; (b) 19% decrease ; (c) 20.95% increase ; (d) 20.6% decrease

Last Answer : (a) 19 increase ; 

If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three

Description : If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three

Last Answer : ; (d) All or any of the above three

Shift in supply curve is cause by (a) Change in citrus paribus conditions ; (b) Increase in price; (c) Decrease in price ; (d) Change in consumer income

Description : Shift in supply curve is cause by (a) Change in citrus paribus conditions ; (b) Increase in price; (c) Decrease in price ; (d) Change in consumer income 

Last Answer : (a) Change in citrus paribus conditions ;

If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the (a) Equilibrium quantity will decrease ; (b) Equilibrium price will decrease ; (c) Equilibrium price will go up ; (d) Equilibrium quantity will increase

Description : If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the (a) Equilibrium quantity will decrease ; (b) Equilibrium price will decrease ; (c) Equilibrium price will go up ; (d) Equilibrium quantity will increase

Last Answer : (a) Equilibrium quantity will decrease ;

Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth

Description : Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth

Last Answer : (c) Increase in real rate of interest ;

If price of sugar increase, the demand for tea will …………. (a) Fall ; (b) Increase ; (c) Not affected ; (d) No relation

Description : If price of sugar increase, the demand for tea will …………. (a) Fall ; (b) Increase ; (c) Not affected ; (d) No relation 

Last Answer : (a) Fall ;

Economic growth is best depicted by (a) Outward shift in PPF ; (b) Upward movement in PPF ; (c) Inward movement in PPF (d) Downward movement in PPF

Description : Economic growth is best depicted by (a) Outward shift in PPF ; (b) Upward movement in PPF ; (c) Inward movement in PPF (d) Downward movement in PPF

Last Answer : (a) Outward shift in PPF ; 

If a firm is operating at any point inside the PPF, the firm is (a) Efficient firm ; (b) Inefficient firm ; (c) Poised for abnormal growth ; (d) None

Description : If a firm is operating at any point inside the PPF, the firm is (a) Efficient firm ; (b) Inefficient firm ; (c) Poised for abnormal growth ; (d) None

Last Answer :  (b) Inefficient firm

If an economy is working at a point left to PPF curve it shows that……… (a) The economy is working at less than the full employment level ; (b) The economy is at full employment level ; (c) The economy is country is faced with excess production ; (d) There is glut of imports

Description : If an economy is working at a point left to PPF curve it shows that……… (a) The economy is working at less than the full employment level ; (b) The economy is at full employment level ; (c) The economy is country is faced with excess production ; (d) There is glut of imports

Last Answer : (a) The economy is working at less than the full employment level ;

Which of these statement is true about production possibility curve (PPC/PPF) (a) It shows various combinations of two goods which yield same level of satisfaction (b) It shows various combination of two goods which an economy can produce with a given amount of resources (c) It shows various combination of two goods which an economy can produce with a given budget (d) It shows various combination of two goods which an economy can produce with a given time

Description : Which of these statement is true about production possibility curve (PPC/PPF) (a) It shows various combinations of two goods which yield same level of satisfaction (b) It shows various combination of two ... (d) It shows various combination of two goods which an economy can produce with a given time

Last Answer : (b) It shows various combination of two goods which an economy can produce with a given amount of resources

A Monopoly‟s demand curve is (a) Same as its average revenue curve ; (b) Same as its supply curve; (c) Same as its cost curve ; (d) Same as that of the factor inputs

Description : A Monopoly‟s demand curve is (a) Same as its average revenue curve ; (b) Same as its supply curve; (c) Same as its cost curve ; (d) Same as that of the factor inputs

Last Answer : (a) Same as its average revenue curve ;

In the long run price is governed by …………. (a) Cost of Production ; (b) Demand supply forces ; (c) Marginal utility ; (d) None

Description : In the long run price is governed by …………. (a) Cost of Production ; (b) Demand supply forces ; (c) Marginal utility ; (d) None

Last Answer : (a) Cost of Production ;

According to law of supply ……….. (a) Higher the price higher the production of the product; (b) Higher the price lower the cost of production ; (c) Lower the price lower the demand for the product; (d) Higher the price higher the quantity the seller is prepared to supply in market

Description : According to law of supply ……….. (a) Higher the price higher the production of the product; (b) Higher the price lower the cost of production ; (c) Lower the price lower the demand for the product; (d) Higher the price higher the quantity the seller is prepared to supply in market

Last Answer : (d) Higher the price higher the quantity the seller is prepared to supply in market 

The minimum price that a supplier expect to make available a specific quantity for sale is called (a) Demand price ; (b) Administered price ; (c) Cost price ; (d) Supply price

Description : The minimum price that a supplier expect to make available a specific quantity for sale is called (a) Demand price ; (b) Administered price ; (c) Cost price ; (d) Supply price

Last Answer :  (d) Supply price

Opportunity cost of increasing production of Gun to 5 units in combination F is –tons of bread (a) 200 ; (b) 100 ; (c) 600 ; (d) 500

Description : Opportunity cost of increasing production of Gun to 5 units in combination F is –tons of bread (a) 200 ; (b) 100 ; (c) 600 ; (d) 500

Last Answer :  (c) 600

Opportunity cost of increasing production of Gun to 4 units in combination E is –tons of bread (a) 200 ; (b) 500 ; (c) 300 ; (d) 400

Description : Opportunity cost of increasing production of Gun to 4 units in combination E is –tons of bread (a) 200 ; (b) 500 ; (c) 300 ; (d) 400

Last Answer :  (b) 500

Opportunity cost of increasing production of Gun to 3 units in combination D is –tons of bread (a) 200 ; (b) 100 ; (c) 300 ; (d) 400

Description : Opportunity cost of increasing production of Gun to 3 units in combination D is –tons of bread (a) 200 ; (b) 100 ; (c) 300 ; (d) 400

Last Answer : ; (d) 400

The opportunity cost of capital investment is (a) Sacrifice of current consumption ; (b) More consumption on luxury items; (c) Lower capital growth in future ; (d) Wastage of Resources

Description : The opportunity cost of capital investment is (a) Sacrifice of current consumption ; (b) More consumption on luxury items; (c) Lower capital growth in future ; (d) Wastage of Resources

Last Answer : (a) Sacrifice of current consumption

The opportunity cost of consumption is (a) Lack of capital formation for future ; (b) Greater investment ; (c) Full employment ; (d) Deflation

Description : The opportunity cost of consumption is (a) Lack of capital formation for future ; (b) Greater investment ; (c) Full employment ; (d) Deflation

Last Answer : (a) Lack of capital formation for future ;

Which of these costs will increase or decrease with increase in production (a) Marginal cost ; (b) Financial costs ; (c) Fixed costs ; (d) All the three

Description : Which of these costs will increase or decrease with increase in production (a) Marginal cost ; (b) Financial costs ; (c) Fixed costs ; (d) All the three 

Last Answer : (a) Marginal cost ;

Decrease in Demand is also known as (a) Expansion in demand ; (b) Compression in demand ; (c) Extension in demand; (d) Extraction in demand

Description : Decrease in Demand is also known as (a) Expansion in demand ; (b) Compression in demand ; (c) Extension in demand; (d) Extraction in demand

Last Answer : (d) Extraction in demand

As per total outlay method, demand is said to be elastic if as result of change in price total outlay (a) Increases ; (b) Decrease ; (c) Remain same ; (d) None

Description : As per total outlay method, demand is said to be elastic if as result of change in price total outlay (a) Increases ; (b) Decrease ; (c) Remain same ; (d) None 

Last Answer : (c) Remain same ;

An improvement in technology would shift (a) the demand curve inward ; (b) the demand curve outward ; (c) the supply curve inward (d) the supply curve outward

Description : An improvement in technology would shift (a) the demand curve inward ; (b) the demand curve outward ; (c) the supply curve inward (d) the supply curve outward

Last Answer : (d) the supply curve outward

…….. is the price at which demand for a commodity is equal to its supply (a) Normal price ; (b) Equilibrium price ; (c) Short run price ; (d) Secular price

Description : …….. is the price at which demand for a commodity is equal to its supply (a) Normal price ; (b) Equilibrium price ; (c) Short run price ; (d) Secular price

Last Answer : ; (b) Equilibrium price ;

Which of the following statement is true (a) Monopolist are price takers ; (b) Monopoly firm earn abnormal profits; (c) A Monopoly firm faces straight demand line ; (d) Supply curve of a monopoly firm is positive sloped

Description : Which of the following statement is true (a) Monopolist are price takers ; (b) Monopoly firm earn abnormal profits; (c) A Monopoly firm faces straight demand line ; (d) Supply curve of a monopoly firm is positive sloped

Last Answer : (a) Monopolist are price takers ;

In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve

Description : In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve

Last Answer : (a) Point of interaction of aggregate demand and aggregate supply curve;

Equilibrium state is achieved at (a) The peak point of supply curve ; (b) The bottom point of demand curve; (c) The inflection point of demand curve ; (d) The intersection of demand and supply curve

Description : Equilibrium state is achieved at (a) The peak point of supply curve ; (b) The bottom point of demand curve; (c) The inflection point of demand curve ; (d) The intersection of demand and supply curve

Last Answer : (d) The intersection of demand and supply curve

The individual demand and supply curve of a product are Dx = 12-2px, Sx=3+5px, where Px stand for price and Dx and Sc respectively stands for quantity demanded and quantity supplie(d) If there are 5000 consumers and 1000 suppliers for the product under question. What will be the equilibrium price (a) `4 ; (b) `5 ; (c) `3 ; (d) `4.5

Description : The individual demand and supply curve of a product are Dx = 12-2px, Sx=3+5px, where Px stand for price and Dx and Sc respectively stands for quantity demanded and quantity supplie(d) If there are 5000 consumers and 1000 suppliers ... be the equilibrium price (a) `4 ; (b) `5 ; (c) `3 ; (d) `4.5

Last Answer : ; (c) `3 ;

Equilibrium state is achieved at ………………… (a) The peak point of supply curve ; (b) The bottom point of demand curve (c) The inflation point of demand curve ; (d) The intersection of demand and supply curve

Description : Equilibrium state is achieved at ………………… (a) The peak point of supply curve ; (b) The bottom point of demand curve (c) The inflation point of demand curve ; (d) The intersection of demand and supply curve

Last Answer : (d) The intersection of demand and supply curve

Full employment exists when there is (a) Zero unemployment ; (b) Natural rate of unemployment ; (c) Least demand for labor (d) Least supply of labor

Description : Full employment exists when there is (a) Zero unemployment ; (b) Natural rate of unemployment ; (c) Least demand for labor (d) Least supply of labor

Last Answer : (b) Natural rate of unemployment

Full employment is the level at which there is (a) Zero unemployment ; (b) Normal rate of unemployment; (c) Lease supply of labor ; (d) Demand for goods is less than supply.

Description : Full employment is the level at which there is (a) Zero unemployment ; (b) Normal rate of unemployment; (c) Lease supply of labor ; (d) Demand for goods is less than supply.

Last Answer : (c) Lease supply of labor ;

The central problem of how to produce is resolved by (a) Demand and supply of factor inputs ; (b) Demand and supply of goods; (c) Relative prices and availability of factors of production ; (d) Government intervention

Description : The central problem of how to produce is resolved by (a) Demand and supply of factor inputs ; (b) Demand and supply of goods; (c) Relative prices and availability of factors of production ; (d) Government intervention

Last Answer : (c) Relative prices and availability of factors of production