Académique Documents
Professionnel Documents
Culture Documents
ECOC514
Part-1
Q1 If a 12% fall in price of burgers leads to a 3% increase in quantity demanded of
burgers, then price elasticity would be
—1.25
—4
-0.25
-0.5
the difference between the prices a purely competitive seller and a purely monopolistic
seller would charge
the selling of a given product at different prices that do not reflect cost differences
any price above that which is equal to minimum average total cost
selling a given product for different prices at two different points in time
Q 5 The reason that you don't drink five cups of coffee at breakfast is that
Q 6 If Marginal Product of labour is lesser than Average Product of labour then Average
Product of labour is
Constant
Decreasing
Increasing
Maximum
a reduction in GDP
unintended inventory increases
unintended inventory reductions
an increase in government purchases
Q 9 An isoquant is
the marginal revenue curve will lie below the demand curve because any reduction in
price applies only to the extra units sold
the marginal revenue curve will lie above the demand curve because any reduction in
price applies to all units sold
the marginal revenue curve will lie below the demand curve because any reduction in
price applies to all units sold
total revenue is a straight, upward sloping line because a firms sales are independent of
product price
Q16 A firm facing a Kinked demand curve expects that its competitors
will match its price increase but not its price decrease
will match its price decrease, but not its price increase
will match any price change it will make
will not match any price change
Q17 Following problem will be a part of Macroeconomic analysis
employment of workers by Tata Motors
analytical study of unemployment in India
growth of employment in Tata Motors
pricing of labourers employed by Tata Motors
Q18 The cost of the factor inputs hired by the producer to produce final output is called
as
Explicit cost
implicit cost
marginal cost
external cost
Q19 If total revenue falls, when price falls, the demand of the product will be
Elastic
Unitary elastic
Inelastic
Perfectly elastic
Q20 A purely competitive firm is in short run equilibrium and its MC exceeds its AC. It
can be concluded that
fall; greater
fall; smaller
rise; greater
rise; smaller
Q23 Demand curve slopes downward due to
Income effect
Substitution effect
Diminishing marginal utility
All of the above
Q24 If the price charged by a firm is greater than average cost of production, the firm
earns
normal profit
economic profit
incurs losses
any of these
Explicit cost
implicit cost
incremental cost
marginal cost
Q26 If the economy experiences a contractionary gap and the RBI stimulates the
economy,
The money supply is decreasing because the RBI makes open-market sales
The money supply is increasing because the RBI makes open-market purchases
The money supply is increasing because the RBI prints more money
The money supply is decreasing because the RBI hoards money
Q27 In autarky,
each country's consumption possibilities are the same as its production possibilities
equilibrium is attained with the maximum gains from specialization and trade
equilibrium is attained with the maximum amount of international trade
a nation is governed by an individual with absolute authority
Positive
Negative
Unitary
Zero
Q29 Cartel is
Q30 If the Indian rupees depreciates in the foreign exchange market, Indian exports will
be____ and Indian imports will be _____
more expensive; more expensive
cheaper; cheaper
less expensive; more expensive
less expensive; less expensive
Part 2
Q1 The output rises at an increasing rate in the first stage of law of diminishing marginal
returns due to
Excess plant capacity
division and specialization of labour
Both a and b
None of the above
Q3 Which of the following industry most closely approximates the oligopoly model
Automobile
Nuclear energy
Services of doctors
Wheat wholesaler
Q4 Gross domestic product is
the sum of money value of all intermediate goods and services produced within the
domestic territories of a country during an accountant year
the aggregate final goods and services produced during an accounting year
the aggregate intermediate goods and services produced during an accounting year
the sum of money value of all final goods and services produced within the domestic
territories of a country during an accounting year.
Q5 Given the same cost and revenue schedules, a profit-maximising monopolist will
produce
Q6 If the price charged by a firm is greater than average cost of production: the firm
earns
normal profit
economic profit
incurs losses
any of these
the proposition that price and quantity demanded can be expected to be inversely
related showing that consumers will be willing and able to buy more of a good at
lower prices that they are at higher prices
a shift in the demand curve that occurs when a variable other than the good' s own
price changes
the amounts of a good that that consumers are willing and able to buy and other
relevant variables such as income or the prices of other goods
A functional relationship between the various possible prices of a good and the
quantity supplied by sellers of it per time period
Q8 A firm earns maximum profit when
MC=MR
MC= ATC
Total revenue equals total costs
TR is greater than TC by the larger amount
—1.25
—4
-0.25
-0.5
Q11 . The money spent for MBA course rather than investing back in business by an
entrepreneur gives rise to
explicit cost
historical cost
opportunity cost
Imputed cost
Q13 A purely competitive firm is in short run equilibrium and its MC exceeds its AC. It
can be concluded that
firms will leave the industry in the long run
the firm is realizing an economic profit
the firm is realizing a loss
this is an increasing cost industry
Q14 Which of the following is assumed constant along the aggregate expenditure line?
the price levels
consumption
unintended inventory adjustment
actual investment
Explicit cost
implicit cost
incremental cost
marginal cost
Q19 The total revenue curve that corresponds to a downward-sloping linear demand curve
Slopes downward
Slopes upward
It is horizontal line
First rises, then falls
Positive
Negative
Unitary
Zero
Q24 the percentage change in the demand for the film divided by the percentage change in
the price of cameras indicates
Q27 To close a contractionary gap using fiscal policy the government can
Q29 If a good is inferior, then the income elasticity of demand for that good is