Question:

Factors of production may be of _______ types.

A.

4

B.

3

C.

2

D.

5

Answer» a. 4

Question:

When excess demand occurs in an unregulated market, there is a tendency for:

A.

price to rise

B.

quantity supplied to decrease

C.

quantity demanded to increase

D.

price to fall

Answer» a. price to rise

Question:

Total input is maximum when _____________

A.

MP = 0

B.

MP is increasing

C.

MP is decreasing

D.

MP is constant

Answer» a. MP = 0

Question:

Income minus Savings is equal to ___________

A.

Consumption

B.

Production

C.

Investment 11

D.

Demand

Answer» a. Consumption

Question:

The average _________ and output have inverse functional relationship.

A.

fixed cost

B.

variable cost

C.

marginal cost

D.

total cost

Answer» a. fixed cost

Question:

The rate at which the commercial banks borrow from the RBI is called as __________

A.

REPO

B.

PLR

C.

BPLR

D.

Bank Rate

Answer» d. Bank Rate

Question:

Which of the first order condition for the profit of a firm be maximum?

A.

AC = MR

B.

MC = MR

C.

MR = AR

D.

AC = AR

Answer» b. MC = MR

Question:

As output increases, AFC of a firm

A.

Increases

B.

remains constant

C.

continuously declines

D.

initially increases, afterwards declines

Answer» c. continuously declines

Question:

Cash Balance Approach was given by

A.

I. Fisher

B.

J. M. Keynes

C.

G. Crowther

D.

Cambridge University Professors

Answer» d. Cambridge University Professors

Question:

The Growth definition of Economics was introduced by

A.

J.M.Keynes and P.A. Samuelson

B.

Adam Smith

C.

Alfred Marshall

D.

Lionel Robbins

Answer» a. J.M.Keynes and P.A. Samuelson