Question:

If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is

A.

Greater than One

B.

Equal to one

C.

Smaller than one

D.

Zero

Answer» d. Zero

Question:

The market demand curve for a perfectly competitive industry is QD = 12 – 2P. Themarket supply curve is QS = 3 + P. The market will be in equilibrium if

A.

P = 6 and Q = 9

B.

P = 5 and Q = 2

C.

P = 4 and Q = 4

D.

P = 3 and Q = 6

Answer» d. P = 3 and Q = 6

Question:

According to Keynes, rising aggregate income is always associated with

A.

Higher saving rate

B.

Higher import

C.

Lower export

D.

Low production

Answer» a. Higher saving rate

Question:

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

A.

Inventories represent value

B.

Inventories add to the stock of the firm

C.

They are purchases by the firm itself

D.

All the above

Answer» c. They are purchases by the firm itself

Question:

Cross elasticity of demand under Perfect competition is?

A.

Zero

B.

Infinitely elastic

C.

Highly elastic

D.

Highly inelastic

Answer» a. Zero

Question:

The demand curve faced by a monopoly is:

A.

vertical

B.

horizontal

C.

upward sloping

D.

downward sloping

Answer» d. downward sloping

Question:

Which of the following is not an element of high Powered money?

A.

Currency

B.

Repos

C.

Required Reserves

D.

Excess reserves

Answer» b. Repos

Question:

The percentage of deposits of commercial banks statutorily kept with the RBI is :

A.

Cash Reserve Ratio

B.

Statutory Liquidity Ratio

C.

Repo Rate

D.

None of these

Answer» a. Cash Reserve Ratio