Question:

An increase in market supply, demand remaining the same causes:

A.

Increase in equilibrium price

B.

Decrease in equilibrium quantity

C.

Decrease in equilibrium price and increase in equilibrium quantity

D.

Both equilibrium price and quantity rises

Answer» c. Decrease in equilibrium price and increase in equilibrium quantity

Question:

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:

A.

2

B.

2.5

C.

3.3

D.

5

Answer» a. 2

Question:

MEC is inversely related to:

A.

Prospective yield

B.

Supply price

C.

Investment

D.

Rate of interest

Answer» a. Prospective yield

Question:

The marker structure with Perfect mobility of factors and products is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» a. Perfect competition