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
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
Description : How does the theory of comparative advantage relate to production possibility curves?
Last Answer : What homework is this for?
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 ;
Description : The quantity of a commodity that an individual is willing to purchase over a specified period of time is a function of except ………. (a) Price of the commodity ; (b) Price of the competitive products; (c) His disposal income ; (d) Price of factor of production
Last Answer : ; (d) Price of factor of production
Description : Which of the following is not a factor in market supply of a product (a) Cost of production ; (b) Number of buyers ; (c) Market price of the product; (d) Price of related products
Last Answer : (b) Number of buyers ;
Description : Which of the following is not a factor is market supply of product (a) Cost of production ; (b) Number of buyers ; (c) Market price of the product ; (d) Price of related products
Last Answer : (b) Number of buyers
Description : The Philips curve shows that (a) High unemployment rates are associated with low increases in money wage rates (b) Low unemployment rates are associated with low rates of inflation (c) High ... rates of inflation (d) High inflation rates are associated with small increases in money wage rates.
Last Answer : (c) High unemployment rates are associated with low rates of inflation
Description : Market demand curve for a commodity is a (a) Horizontal summation of all the individual demand curve for that product (b) Summation of demand curve of competitive products (c) Demand curve of average demand and price of previous six months (d) Projected demand schedule for next three months
Last Answer : (a) Horizontal summation of all the individual demand curve for that product
Description : Decreases in price of a product results in increased consumption of the product as the product becomes cheaper compared to other products. This effect is known as (a) Substitution effect ; (b) Income effect ; (c) Diminishing marginal utility concept; (b) Law of diminishing returns
Last Answer : (a) Substitution effect ;
Description : Cross elasticity of complementary products will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
Last Answer : (d) < 0
Description : Cross elasticity of unrelated products will be (a) Infinite ; (b) Zero ; (c) .> 1 ; (d)
Last Answer : (b) Zero ;
Description : Cross elasticity of a nearly perfect substitute products will be (a) Infinite ; (b) Zero ; (c) .> 1 ; (d)
Last Answer : (a) Infinite ;
Description : When the price of complementary products increases, the demand of the other product will (a) Falls ; (b) Increases ; (c) Remains same ; (d) Increases by 25%
Last Answer : (a) Falls ;
Description : When the price of complementary products falls, the demand of the other product will (a) Fall ; (b) Increases ; (c) Remain stable ; (d) Drops by 25%
Last Answer : (b) Increases ;
Description : If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that (a) Cross price elasticity of demand is negative and both the products are complementary to each other ... price elasticity is positive and the products are complementary to each other ; (d) None of these
Last Answer : (a) Cross price elasticity of demand is negative and both the products are complementary to each other;
Description : If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated
Last Answer : (a) Complementary to each other ;
Description : If the price elasticity of a product is greater than 1, we can say that (a) The products demand is sensitive to price variation; (b) Product demand is insensitive to price variation; (c) Demand and price move in same directions ; (d) None of this
Last Answer : (a) The products demand is sensitive to price variation;
Description : If the cross elasticity between two products is positive then we can say that (a) The products are perfectly substitute of each other; (b) The products are complementary to each other; (c) Both the products are unrelated ; (d) Both are luxury items
Last Answer : (a) The products are perfectly substitute of each other;
Description : Which of these is/are the feature of an underdeveloped economy? (a) Greater inequalities ; (b) High incidence of unemployment ; (c) Orthodox means of production ; (d) All the three
Last Answer : (d) All the three
Description : If we add……………. to net domestic production we get GDP (a) Depreciation ; (b) Direct tax ; (c) Indirect tax ; (d) Interest payment
Last Answer : (a) Depreciation ;
Description : Which of these indicates increase in welfare of the people? (a) Increase in production of war time equipments ; (b) Increase in production of food grains (c) Spurt in smuggling activities ; (d) Increase in production of Heroine, smack et(c)
Last Answer : (a) Increase in production of war time equipments ;
Description : In agricultural sector net value added is estimated by (a) Income method ; (b) Expenditure method ; (c) Production method ; (d) All the three
Last Answer : ; (c) Production method ;
Description : Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three
Description : ………….. is a situation in which it is not possible to make someone better off without making someone worse off (a) Social efficiency ; (b) Production efficiency ; (c) Distribution efficiency ; (d) Pareto efficiency
Last Answer : (d) Pareto efficiency
Description : …………… has excess production capacity in the long run (a) Perfect competition market ; (b) Monopolistic competition market ; (c) Oligopolistic market (d) None
Last Answer : (b) Monopolistic competition market ;
Description : A monopoly based on sole state ownership of production and distribution network is known as (a) Natural monopoly ; (b) Technological monopoly ; (c) Government monopoly; (d) Geographical monopoly
Last Answer : (c) Government monopoly;
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 ;
Description : If the supply of a product remain same with the increase in price, the possible reasons can be (a) Apprehension of further price hike ; (b) Limited production facility; (c) Commodity being a rare commodity ; (d) All the three
Description : According to law of demand (a) Higher the price higher the production of the product (b) Higher the price lower the cost of production (c) Lower the price higher the demand for the product (d) Higher price higher the quantity the more the consumer demand
Last Answer : (c) Lower the price higher the demand for the product
Description : The demand for a product is 25 units when the price is `10, however the demand rises to 26 when the price is reduced to `9.9 per unit. The marginal revenue from production and sale of additional unit from 25 to 26 is (a) `7.4 ; (b) `(16) ; (c) `10 ; (d) `257.6
Last Answer : (a) `7.4 ;
Description : Change in quantity demanded or Movement along demand curve occurs due (a) Due to change in price only ; (b) Change in Cetris paribus conditions only ; (c) Change in cost of production ; (d) Change in technology
Last Answer : (a) Due to change in price only ;
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 ;
Description : The quantity that an individual supplier is prepared to supply over a period of time is a function of (a) Price of the product ; (b) Cost of production of the product ; (c) Both ; (d) None
Last Answer : ; (c) Both ;
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
Description : Under law of supply, ceteris paribus is (a) Cost of production ; (b) Production technology ; (c) None ;(d) Both
Last Answer : ;(d) Both
Description : Which of these is not a factor of quantity supplied (a) Price of the goods ; (b) Price of the related other goods; (c) Cost of production ; (d) Consumers disposal income
Last Answer : ; (d) Consumers disposal income
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 ;
Description : Select the odd one (a) Price of the product ; (b) Cost of production ; (c) No. of suppliers ; (d) St. duties
Last Answer : (a) Price of the product
Description : Elasticity of supply depends upon (a) Nature of the commodity ; (b) Production technology ; (c) Future outlook of prices (d) All the three
Description : Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits
Last Answer : (c) Cost of production ;
Description : Long run supply curve of a constant cost industry is (a) Horizontal line at a price that is equal to the long run minimum average cost of production; (b) Horizontal line overlapping X axis ; (c) Vertical line at mid of X axis ; (d) Vertical line overlapping Y axis
Last Answer : (a) Horizontal line at a price that is equal to the long run minimum average cost of production;
Description : Total variable cost curve is explained by (a) Law of the diminishing marginal returns ; (b) The price of the variable inputs; (c) Production function ; (d) All the three
Last Answer : ; (d) All the three
Description : The negatively sloped part of long run cost curve of a firm is due to (a) Increase in production due to specialization and division of labour; (b) Diseconomies of scale ; (c) Diminishing returns to scale ; (d) Marginal utility theory
Last Answer : (a) Increase in production due to specialization and division of labour;
Description : Marginal cost is defined as……………………. (a) Change in total cost due to addition of one unit ; (b) Total cost divided by additional unit; (c) Total cost divided by total units produced ; (d) Total sales / Total production
Last Answer : (a) Change in total cost due to addition of one unit ;
Description : If total production increases in the short run, the total cost will also…….. (a) Increase due to increase in fixed cost ; (b) Increase due to increase in variable cost (c) Increase due to increase in total cost ; (d) Remain constant
Last Answer : (b) Increase due to increase in variable cost
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 ;
Description : Marginal product is…………. (a) Rate at which total production changes with change in variable input; (b) Rate at which total production changes with change in total cost; (c) Rate at which total production changes with change in fixed cost ; (d) None
Last Answer : (a) Rate at which total production changes with change in variable input;
Description : „Transfer Payments‟ are (a) Payments made to a factor of production ; (b) Payments transferred from one sector to another; (c) Payments made for no return service ; (d) Payments made by government of one country to another
Last Answer : (c) Payments made for no return service ;
Description : If the actual rate of unemployment exceeds to natural rate of unemployment then (a) Actual output of the economy will fall below its potential ; (b) Production will increase more than potential ; (c) Consumption of goods decreases; (d) Both (a) and (c) above.
Last Answer : (d) Both (a) and (c) above.