Question:

The larger the diameter of a natural gas pipeline, the lower is the average total cost oftransmitting 1,000 cubic feet of gas 1,000 miles. This is an example of:

A.

Economies of scale.

B.

Normative economies.

C.

Diminishing marginal returns.

D.

An increasing marginal product of labour.

Answer» a. Economies of scale.

Question:

If negative income effect is less than positive substitution effect : the productwill be

A.

a normal good

B.

an inferior good

C.

a giffen good

D.

a complementary good

Answer» b. an inferior good

Question:

Which one of the following includes ‘income of residents’?

A.

GDP

B.

NNP

C.

SDP

D.

None of the above

Answer» b. NNP

Question:

Personal Income includes:

A.

Dividend distributed

B.

Social insurance contributions

C.

Corporate profit

D.

None of the above

Answer» a. Dividend distributed

Question:

Which policy is effective in the Keynesian range?

A.

Monetary policy

B.

Fiscal policy

C.

Incomes policy

D.

None of these

Answer» b. Fiscal policy

Question:

The saucer-type of modern Short run Average Variable Cost (SAVC) represents

A.

excess capacity

B.

managerial costs

C.

load factors

D.

reserve capacity

Answer» b. managerial costs

Question:

According to Marshall, The law of diminishing marginal utility

A.

applies on money in the manner in which it applies on commodity

B.

do not applies on money except bank money

C.

does not applies on bank money but applies on cash

D.

applies on all commodities except money

Answer» d. applies on all commodities except money

Question:

National income is a:

A.

Cross section analysis

B.

Flow concept

C.

Stock concept

D.

None

Answer» b. Flow concept

Question:

Indifference curves are

A.

always parallel

B.

may be parallel

C.

may not be parallel

D.

both b and c

Answer» d. both b and c

Question:

When a firm doubles its inputs and finds that its output has more than doubled, this isknown as:

A.

Economies of scale.

B.

Constant returns to scale.

C.

Diseconomies of scale.

D.

A violation of the law of diminishing returns.

Answer» a. Economies of scale.