The size of the market for a product refers to

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Q1151. The size of the market for a product refers to
(a) the number of people in the given area
(b) the geographical area served by the proudcers
(c) the volume of potential sales of the product
(d) the number of potential buyers of the product
Ans: (d)
Q1152. Product differentiation is the most important feature of
(a) pure competition
(b) monopolistic competition
(c) monopoly
(d) oligopoly
Ans: (b)
Q1153. Same price prevails throughout the market under
(a) perfect competition
(b) monopoly
(c) monopolistic competition
(d) oligopoly
Ans: (a)
Q1154. Under Perfect Competition
(a) Marginal Revenue is less than the Average Revenue
(b) Average Revenue is less than the Marginal Revenue
(c) Average Revenue is equal to the Marginal Revenue
(d) Average Revenue is more than the Marginal Revenue
Ans: (c)
Q1155. Perfect competition means
(a) large number of buyers and less sellers
(b) large number of buyers and sellers
(c) large number of sellers and less buyers
(d) None of these
Ans: (b)
Q1156. Marginal cost is the
(a) cost of producing a unit of output
(b) cost of producing an extra unit of output
(c) cost of producing the total output
(d) cost of producing a given level of output
Ans: (b)
Q1157. A fall in demand or rise in supply of a commodity–
(a) Increases the price of that commodity
(b) decreases the price of that commodity
(c) neutralises the changes in the price
(d) determines the price elasticity
Ans: (b)
Q1158. Demand curve of a firm under perfect competition is :
(a) horizontal to ox-axis
(b) negatively sloped
(c) positively sloped
(d) U – shaped
Ans: (a)
Q1159. Production Function relates to:
(a) costs to outputs
(b) costs to inputs
(c) inputs to outputs
(d) wage level to profits
Ans: (c)
Q1160. Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its
(a) long-run marginal cost curve
(b) long-run average cost curve
(c) long-run average variable cost curve
(d) long-run average revenue curve
Ans: (b)
Q1161. Equilibrium price is the price when :
(a) supply is greater than demand
(b) supply is less than demand
(c) demand is very high
(d) supply is equal to demand
Ans: (d)
Q1162. Which of the following is an inverted ‘U’ shaped curve ?
(a) Average cost
(b) Marginal cost
(c) Total cost
(d) Fixed cost
Ans: (a)
Q1163. Wage fund theory was propounded by
(a) J.B. Say (b) J.S. Mill
(c) J.R. Hicks (d) J.M. Keynes
Ans: (b)
Q1164. Which one of the following pairs of goods is an example for Joint Supply ?
(a) Coffee and Tea
(b) Ink and Pen
(c) Tooth brush and Paste
(d) Wool and Mutton
Ans: (d)
Q1165. Kinked demand curve is a feature of
(a) Monopoly (b) Oligopoly
(c) Monopsony (d) Duopoly
Ans: (b)
Q1166. The addition to total cost by producing an additional unit of output by a firm is called
(a) Variable cost
(b) Average cost
(c) Marginal cost
(d) Opportunity cost
Ans: (c)
Q1167. A market in which there are a few number of large firms is called as
(a) Duopoly (b) Competition
(c) Oligopoly (d)Monopoly
Ans: (c)
Q1168. The remuneration of the entrepreneur in production is
(a) Pure profit
(b) Gross profit
(c) Net profit
(d) Super-normal profit
Ans: (c)
Q1169. The principle of maximum social advantage is the basic principle of
(a) Micro Economics
(b) Macro Economics
(c) Fiscal Economics
(d) Environmental Economics
Ans: (c)
Q1170. The demand for necessities is
(a) elastic
(b) perfectly inelastic
(c) inelastic
(d) perfectly elastic
Ans: (b)
Q1171. If a firm is operating at loss in the short-period in perfect combination, it should :
(a) decrease the production and the price.
(b) increase the production and the price
(c) continue to operate as long as it covers even the variable costs.
(d) shut-down and leave the industry
Ans: (c)
Q1172. Expenditure on advertisement and public relations by an enterprise is a part of its
(a) consumption of fixed capital
(b) final consumption expenditure
(c) intermediate consumption
(d) fixed capital
Ans: (c)
Q1173. A supply function expresses the relationship between
(a) price and output
(b) price and selling cost
(c) price and demand
(d) price and consumption
Ans: (a)
Q1174. Minimum payment to factor of production is called
(a) Quasi Rent
(b) Rent
(c) Wages
(d) Transfer Payment
Ans: (d)
Q1175. Rent is a factor payment paid to
(a) land (b) restaurant
(c) building (d) factory
Ans: (a)
Q1176. Consumer gets maximum satisfaction at the point where
(a) Marginal Utility = Price
(b) Marginal Utility > Price
(c) Marginal Utility < Price (d) Marginal Cost = Price Ans: (a) ________________________________________ Q1177. The sale of branded articles is common in a situation of (a) excess capacity (b) monopolistic competition (c) monopoly (d) pure competition Ans: (b) ________________________________________ Q1178. In a free enterprise economy, resource allocation is determined by (a) the pattern of consumers’ spending (b) the wealth of the entrepreneurs (c) decision of the Government (d) the traditional employment of factors Ans: (a) ________________________________________ Q1179. The demand of a factor of production is (a) direct (b) derived (c) neutral (d) discretion of the producer Ans: (b) ________________________________________ Q1180. As the number of investments made by a firm increases, its internal rate of return (a) declines due to diminishing marginal productivity. (b) declines because the market rate of interest will fall, ceteris paribus. (c) increases to compensate the firm for the current consumption foregone. (d) increases because the level of savings will fall. Ans: (c)

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