Q1. In which
form of the market structure is the degree of control over the price of its
product by a firm very large?
form of the market structure is the degree of control over the price of its
product by a firm very large?
(a) Monopoly
(b) Imperfect
Competition
Competition
(c) Oligopoly
(d) Perfect
competition
competition
Q2. Average
revenue curve is also known as:
revenue curve is also known as:
(a) Profit
Curve
Curve
(b) Demand
Curve
Curve
(c) Average
Cost Curve
Cost Curve
(d) Indifference
Curve
Curve
Q3. Disguised
unemployment in India exists in
unemployment in India exists in
(a)
Transport sector
Transport sector
(b)
Agricultural sector
Agricultural sector
(c)
Banking
Banking
(d) Service
sector
sector
Q4.
Intensive Agriculture District Programme (IADP) was started in
Intensive Agriculture District Programme (IADP) was started in
(a)
1959-60
1959-60
(b)
1960-61
1960-61
(c)
1961-62
1961-62
(d)
1962-63
1962-63
Q5. Suppose
that the demand curve for the ABC Co. slopes downward and to the right. We can
conclude that
that the demand curve for the ABC Co. slopes downward and to the right. We can
conclude that
(a) the firm
operates in a perfectly competitive market.
operates in a perfectly competitive market.
(b) the firm
can sell all that it wants to at the established market price.
can sell all that it wants to at the established market price.
(c) the XYZ
Co. is not a price taker in the market because it must lower price to sell
additional units of output.
Co. is not a price taker in the market because it must lower price to sell
additional units of output.
(d) the XYZ
Co. will not be able to maximize profits because price and revenue are subject
to change.
Co. will not be able to maximize profits because price and revenue are subject
to change.
Q6. If firms
in the shoes industry have the following
market shares, which market structure would best describe the industry?
in the shoes industry have the following
market shares, which market structure would best describe the industry?
Market share (% of
market)
market)
Adidas 18.7
Puma 14.3
Rebook 11.6
sparx 9.4
bata 8.8
nike 7.4
Others 29.8
(a) Perfect
competition
competition
(b) Monopolistic
competition
competition
(c) Oligopoly
(d) Monopoly
Q7. Which
sector is the backbone of Indian economy?
sector is the backbone of Indian economy?
(a)
Service Sector
Service Sector
(b)
Financial Sector
Financial Sector
(c)
Tourism Sector
Tourism Sector
(d)
Agriculture Sector
Agriculture Sector
Q8. The
kinked demand curve model of oligopoly assumes that
kinked demand curve model of oligopoly assumes that
(a) the
response to a price increase is less than the response to a price decrease.
response to a price increase is less than the response to a price decrease.
(b) the
response to a price increase is more than the response to a price decrease.
response to a price increase is more than the response to a price decrease.
(c) the
elasticity of demand is constant regardless of whether price increases or
decreases.
elasticity of demand is constant regardless of whether price increases or
decreases.
(d) the
elasticity of demand is perfectly elastic if price increases and perfectly
inelastic if price decreases.
elasticity of demand is perfectly elastic if price increases and perfectly
inelastic if price decreases.
Q9. In
terms of economics, the total value of the output (goods and services) produced
and income received in a year by a domestic resident of a country put together
is called
terms of economics, the total value of the output (goods and services) produced
and income received in a year by a domestic resident of a country put together
is called
(a) Net
National Product
National Product
(b)
Gross National Product
Gross National Product
(c)
Gross National Income
Gross National Income
(d)
National income
National income
Q10. A firm
encounters its “shutdown point” when:
encounters its “shutdown point” when:
(a) average
total cost equals price at the profit-maximising level of output.
total cost equals price at the profit-maximising level of output.
(b) average
variable cost equals price at the profit-maximising level of output.
variable cost equals price at the profit-maximising level of output.
(c) average
fixed cost equals price at the profit-maximising level of output.
fixed cost equals price at the profit-maximising level of output.
(d) marginal
cost equals price at the profit-maximising level of output.
cost equals price at the profit-maximising level of output.
Q11. Suppose
that, at the profit-maximizing level of output, a firm finds that market price
is less than average total cost, but greater than average variable cost. Which
of the following statements is correct?
that, at the profit-maximizing level of output, a firm finds that market price
is less than average total cost, but greater than average variable cost. Which
of the following statements is correct?
(a) The firm
should shutdown in order to minimize its losses.
should shutdown in order to minimize its losses.
(b) The firm
should raise its price enough to cover its losses.
should raise its price enough to cover its losses.
(c) The firm
should move its resources to another industry.
should move its resources to another industry.
(d) The firm
should continue to operate in the short run in order to minimize its losses
should continue to operate in the short run in order to minimize its losses
Q12. Which
of the following is definitely a major indication of the state of the economy
of a country?
of the following is definitely a major indication of the state of the economy
of a country?
(a) Rate
of GDP growth
of GDP growth
(b) Rate
of inflation
of inflation
(c)
Number of banks in a country
Number of banks in a country
(d) None
of these
of these
Q13. When
price is less than average variable cost at the profit-maximising level of
output, a firm should:
price is less than average variable cost at the profit-maximising level of
output, a firm should:
(a) produce
where marginal revenue equals marginal cost if it is operating in the short
run.
where marginal revenue equals marginal cost if it is operating in the short
run.
(b) produce
where marginal revenue equals marginal cost if it is operating is the long run.
where marginal revenue equals marginal cost if it is operating is the long run.
(c) shutdown,
since it will lose nothing in that case.
since it will lose nothing in that case.
(d) shutdown,
since it cannot even cover its variable costs if it stays in business.
since it cannot even cover its variable costs if it stays in business.
Q14. In which year ‘Bombay plan’ was launched by some
industrialists?
industrialists?
(a) 1942
(b) 1943
(c) 1944
(d) 1945
Q15. The Economic Planning Committee was established in the
chairmanship of
chairmanship of
(a) J.L. Nehru
(b) Dr. Rajendra Prasad
(c) Ramkrishna Mudaliyar
(d) K.C. Niyogi
Solutions
S1. Ans.(a)
Sol.
S2. Ans.(b)
Sol.
S3. Ans.(b)
Sol.
S4. Ans.(b)
Sol.
S5. Ans.(c)
Sol.
S6. Ans.(c)
Sol.
S7. Ans.(a)
Sol.
S8. Ans.(a)
Sol.
S9. Ans.(b)
Sol.
S10. Ans.(b)
Sol.
S11. Ans.(d)
Sol.
S12. Ans.(a)
Sol.
S13. Ans.(d)
Sol.
S14. Ans.(c)
Sol.
S15. Ans.(a)
Sol.
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