Practice Test


1) ________ refers to how much quantity of a product or a sevice is desired by the buyers.


2) The ______ is the amount of a product people are willing to buy at a certain price.


3) Which of the following things is/are essential for a desire for a commodity to become effective demand?


4) As per ________, " A fall in the price of a commodity causes a household to buy more of that commodity and less of the other commodities which compete with it, while rise in price causes the household to buy less of this commodity and more competing commodities."


5) According to law of demand, ________, if the price of a the commodity falls, the quantity demanded of it will rise and the price of a commodity rises, its quantity demand will decline


6) As per law of demand, other things being equal, if the price of a commodity _______, the quantity demanded of it will rise.


7) According to law of demand, other things being equal, if the price of a commodity rises, its quantity demanded will _______


8) The law of demand assumes that ________ remain the same in a given period.


9) The law of demand , assuming other things to remain constant, establishes the relationship between:_______


10) The law of demand assumes that ________ remain the same in a given period.


11) As per the law of demand, there is ______ between price and quantity demanded, other things being same.


12) Ceteris Paribus means ________


13) Demand for goods by an individual or the markets as a whole conventionally expressed in the form of:___________


14) A _______ of an individual buyer is an algebraic form of expressing his demand behaviour


15) A ______ is a tabular form of describing the relationship between quantities demanded of good in response to its price per unit, while all non-price determining variables remain unchanged


16) ________ is a grahical presentation of the demand schedule


17) A demand curve ______


18) In economics_________ of a good is its expected capacity to satisfy a human want.


19) Which of the following factors or principles is / are responsible for the operation of law of demand, or for the downward slope of the demand curves ?


20) Which of the following factors or principles is / are responsible for the operation of law of demand, or for the downward slope of the demand curves ?


21) Which of the following factors or principles is / are responsible for the operation of law of demand, or for the downward slope of the demand curves ?


22) If the demand changes due to change in price, it is called________


23) if the demand changes due to change in other things, it is called as __________


24) When a consumer moves from one point to another on the same demand curve it is called as __________


25) When the entire demand curve shifts its position it is called as __________


26) If due to increase in 'price' , quantity demanded goes downward it is known as _______


27) If due to decrease in 'price' , quantity demanded goes upward it is known as _______


28) If due to change in other things, quantity demanded goes upward it is known as _________


29) If due to change in other things, quantity demanded goes downward it is known as _________


30) Contraction of demand is the result of: _____________


31) There is no exception to law of demand


32) Which of the following is/ are exception to the law of demand?


33) Goods which are consumed by weaker section of society are known as __________


34) Goods which are used by rich people to show their status are known as ________


35) Some special varities of inferior goods are termed as ______________


36) Which of the following is giffen goods?


37) Which of the following is not Giffen goods?


38) An increase in consumer income, will increase demand for a _________ but decrease demand for a _________


39) The first determinant of the demand for a goods is___________


40) Which of the following can be treated as determinant of demand?


41) All of the following are determinants of demand except;________


42) Which of the following can be treated as determinant of demand?


43) _______and ________do not directly affect the demand cruve.


44) _________are those goods which are consumed simultaneously like car and petrol.


45) ________are those goods that can be substituted for each other like coffee and tea.


46) Ball-pen and refill are example of _______


47) Motor cycle and scooter are example of ______


48) Car and petrol are example of _______


49) Which of the following Pairs of goods is an example of substitutes


50) If the price of ipods increases and as a consequence, the demand for MP3s increases, then ipods and MP3s are________


51) The _________ refers to the amount of a certain good producers are willing to supply when receiving a certain price.


52) According to _______, supply always means a schedule of possible prices and amounts that would be sold at each price.


53) __________ states: " other things being equal, the quantity of any commodity that firms will produce and offer for sale is positively related to commoditys own price, rising when the price rises and falling when the price falls."


54) The law of supply states that a firm will produce and offer to sell greater quantity of a product or service as the price of that product or service rises, other things being equal.


55) There is ________between price and quantity supplied.


56) Suppy for goods by an individual or the market as a whole is conventionally expressed in the form of:______________


57) A ___________ of an individual supplier is an algebraic form of expressing his behaviour with regard to what he offers in the market at prevailing prices


58) A________is a tabular statement that shows different quantity or service that are offered by the firm or producer in the market for sale at different prices at a given time.


59) The individual________ is a graphical representation of the information given in individual supply schedule.


60) ________relates to the supply of a good or service by one firm at different prices ,other things remains constant or equal.


61) _______is the sum of the amount of good supplied for sale by all the firms or producers in the market at different prices during a given time.


62) The supply curve slopes__________


63) Law of supply states that there exist _________ between the price of a product and its quantity supplied , ceteris paribus.


64) If the supply changes due to change in price,it is called ________


65) If the supply changes due to change in other things ( determinants), it is called as __________


66) When a consumer moves from one point to another on the same supply curve it is called as __________


67) When the entire supply curve shifts its position it is called as ________


68) If due to increase in 'Price', Quantity supplied goes upward it is known as ____________


69) If due to decrease in Price, quantity supplied goes downward it is known as _________


70) IF due to changein other things quantity supplied goes upward it is known as ______


71) If due to chage in other things (determinanants) quantity supplied goes downwards it is known as __________


72) If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in ___________


73) Which of the following can be treated as determinant of Supply?


74) Which of the following can be treated as determinants of supply?


75) Which of the following can be treated as determinants of supply?


76) In economics equilibrium is a situation in which _________


77) In economics, equilibrium is a situation in which _______


78) The equilibrium is the state when _______


79) If the graphical presentation s made for demand and supply curve equilibrium is attained when________


80) ____________ is defined as the responsiveness of the quantity demanded of a good to the changes in one of the variables on which demand depends or we can say that it is the percentage change in quantity demanded divided by the percentage change in one of the variables on which demand depends


81) __________ of demand is the degree of responsiveneess of the demand for a commodity to a change in its price


82) The formula for calculating price elasticity of demand is _____________


83) When a very insignificant change in price leads to an infinite change in quantity demanded it is called as _________


84) Quantity demanded does not change with the change in price is called as ________


85) When a small change in price causes a greater change in the quantity demanded is called as _______


86) Where a greater change in price leads to a smaller change in quantity demanded, it is called as _________


87) When a change in price results in exaclty the same percentage change in the quantity demanded of a commodity, it is called as _____________


88) Perfectly elastic demand means: _______


89) Perfectly inelastic demand means: _________


90) Relatively elastic demand means: ________


91) Relatively inelastic demand means: ________


92) Unitary elastic demand means: ______


93) Price elasticity of demand can be measured through: _________


94) According to percentage method or arithmetic method of elasticity of demand, if the percentage change in quantity demanded is greater than the percentage change in price, the elasticity will be _____________


95) According to percentage method or arithmetic method of elasticity of demand, if the percentage change in quantity demanded is less than the percentage change in price, the elasticity is said to be ___________


96) According to percentage method or arithmetic method of elasticity of demand, if the percentage change in quantity demanded and price is same, the elasticity is said to be _____________


97) Total expnditure method was formulated by ___________


98) According to total expenditure method of elasticity of demand, if it is found that total expenditure remains the same, elasticity of demand is said to be _______


99) According to total expenditure method of elasticity of demand, if total expenditure increases due to increase in price the , elasticity of demand is said to be _______


100) According to total expenditure method of elasticity of demand, if total expenditure diminished with the decrease in price , elasticity of demand is said to be _______


101) According _____________, elasticity of demand is measured on different points on a straight line demand curve.


102) According to graphic or point method of elasticity of demand, at mid-point on a straight line demand curve, elasticity will be equal to


103) According to graphic method or point method of elasticity of demand, at higher points on a straight line demand curve, but to the left ot mid point elasticity will be equal to ________


104) According to graphic method or point method of elasticity of demand, at lower points on a straight line demand curve, but to the right to mid point elasticity will be equal to ________


105) According to graphic or point method of elasticity of demand the price elasticity of demand at a point on straight line is equal to ________ of the demand curve


106) Price elasticicty of demand is dependent upon __________


107) Price elasticicty of demand is dependent upon __________


108) The demand is _________ for moderate priced goods


109) The demand for very costly and very cheap goods is ____________


110) If a good has a close substitutes, the price elasticity of demand for a commodity will be ________ as some other commodities can be used for it


111) Which of the following has inelastic demand?


112) Elasticity of demand for a good is not dependent upon the proportion of a consumer's budget spent on it.


113) If individuals are habituated of some commodities the demand for such commodities will be usually _______


114) The demand for necessities is ________


115) The demand for comforts and luxuries is _________


116) A commdity which has several uses will have an ________ demand such as milk, wood etc.


117) A commodity having only one use will have _______ demand


118) Usually the deamnd for commodities, the consumption of which can be postponed has ________ demand as the price rise and is expected to fall again.


119) The Change in demand of a goods X in response to a change in the price of Goods Y is called ___________


120) Cross price elasticity is __________ if the change in the price of goods Y causes a change in quantity demanded of goods X in same direction


121) Cross price elasticity is __________ if the change in the price of goods Y causes a change in quantity demanded of goods X in opposite direction


122) Cross price elasticity is __________, if a change in price of Goods Y does not affect the quantity demanded Goods X


123) in case of ______ cross elasticity is infinite


124) In case of ______, cross elasticity is positive


125) in case of ________ cross elasticity is negative


126) A positive cross elasticity of demand coefficient indicates that _________


127) ________ is a degree of responsiveness of quantity demanded of goods to a change in income of consumers


128) ________ have a positive income elasticity of demand so as consumers income rises demand also increases


129) _______ have a negative income elastcity of demand falls when income rises


130) ______ have an income elasticity of demand Ed > 1


131) The supply is said to be ________ when a very insignificant changein price leads to an infinite change in quantity supplied


132) The supply is said to be ________, when a change in price producees no change in quantity supplied of a commodity


133) The supply is _______ when a small change in price causes a greater change in quantity supplied


134) The supply is ______ when a greater change in price leads to smaller change in quantity supplied


135) Perfectly elastic supply means _______


136) Perfectly inelastic supply means ________


137) Relatively elastic supply means: ________


138) Relatively inelastic supply means: ________


139) Unitary elastic supply means: ______


140) The price of goods X increases by 22% and quantity of goods X demanded falls by 25% this indicates that demand for goods X is


141) Suppose the price of commodity rises from Rs. 120 to Rs. 200, it is observed that the rise in price causes quantity demanded to fall from 300 to 200. What is the price elasticity of demand for commodity.


142) If the price of a commodity is reduced from Rs. 300 to Rs. 200 and the quantity demanded increases from 3000 to 5000. what is the price elasticity of demand


143) A discount store has a special offer on CD's . It reduces their prices from Rs. 150 to Rs. 100 suppose the store manager observes that the quantity demanded increases from 700 CD's to 1300 CD's.What is the price elasticity of demand for CD's


144) Suppose the consumer income increases from Rs. 30 000 to Rs. 36 000. As a result the consumer increases her purchase of CD's From25 to 30. what is the consumers income elasticity of demand for CD's


145) the price of commodity decreases from rs. 6 to Rs. 4 and his demand for goods increases from 10 units to 15 units find the co-efficent of price elasticity of demand:


146) a consumer buys 50 units of commodity @ Rs. 4 per unit. When its price falls by 25 % it demand rises to 100 units find out price elasticity of demand


147) When the price of the commodity X is Rs. 20 per unit it's quantity demanded is 50 units, and when the price goes upto Rs. 40 per unit its quantity demanded falls to 25 units. Find the price elasticy coefficeint and give its interpretration


148) A consumer spends Rs. 80 on a commodity when its price is Re. 1 per unit and spend Rs. 96 when the price is Rs. 2 per unit. Calculate the price elasticity coefficient of demand for commodity.


149) Consumer X buys 100 units of commodity at Rs. 8 per unit. When its price falls by 50 %, the demand rises to 200 units. Find out the price elasticity of demand for this product.


150) When the income of the consumer is Rs.40, his demand for a particular commodity is 8 units. When his income goes up to Rs. 50 his demand for that commodity becomes 10 units calculate his income elasticity of demand for the commodity.


151) If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross price elasticity of demand between beef and chicken


152) Calculate cross elasticity of demand when demand for X increase from 10 units to 15 units and price of Y increase from Rs. 3 to Rs. 6 per unit


153) If the price elasticity of demand for a goods is 0.70, the demand for the goods can be described as : _______


154) Price elasticicty of demand is dependent upon __________


155) Cross price elasticity is _________ if the slighest change in the price of Goods Y causes a substantial change in the quantity demanded of Goods X.


156) __________ defines market as, "not any particular market place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such free intercourse with each other that the prices of the same goods tend to equality easily and quickly".


157) According to_____, " Market means the general field within which, the force determining the price of particular product operate".


158) _______ explain the term market as " any organization whereby buyers and sellers of a good are kept in close touch with each other".


159) Which of the following is/ are basic components of market?


160) ________ refers to a market structure in which a large number of firms produce identical goods and sell them at a uniform price, where firms have the freedom of entry and exit and all the buyers and sellers have full knowledge of the market conditions.


161) Which of the following is feature of ' Perfect Competition' ?


162) Which of the following is feature of ' Perfect Competition' ?


163) Which of the following is feature of ' Perfect Competition' ?


164) Which of the following is feature of ' Perfect Competition' ?


165) Which of the following is not a feature of ' Perfect Competition'?


166) Which of the following is not a condition of perfect competition?


167) Under which of the following forms of market structure does a firm have no control over the price of its product?


168) In a perfect competition, product supplied by one firm is a perfect substitute of that supplied by another.


169) In a perfect competition, every firm in the industry is a price maker.


170) In a perfect competition, the demand for product of the firm is _______.


171) In a perfect competition, single buyer or seller may have influence on the price.


172) In a perfect competition, every buyer and seller may not have knowledge of the market.


173) In a perfect competition, seller has to incur selling expenses because his product has to be differentiated from the products supplied by other sellers.


174) Agricultural goods markets depict characteristics close to ______.


175) Since a perfectly competitive firm is a price taker, it is faced with a straight line demand curve i.e. AR is _______.


176) What is the shape of the demand curve faced by a firm under perfect competition?


177) In a perfect competition, the firm will be in equilibrium when _____.


178) The short run average cost curve (SAC) is ____.


179) In a perfect competition, the firms have _____.


180) On account of law of ______, the average variable cost curve is U-shaped.


181) In a perfect competition operating under long run, no firm is able to earn an abnormal profit.


182) These short run cost curves (SACs) are also called as _______.


183) In a perfect competition in long run firm gets equilibrium where it is operating under ____.


184) For the price-taking firm: ________


185) In perfect competition in the long run there will be no ______.


186) If under perfect completion, the price line lies below the average cost curve, the firm would ______.


187) In a perfect competition which curve among following will be a straight line?


188) The term monopoly means a ______.


189) The monopolist is _______.


190) A monopoly firm faces a ______ for his product.


191) Which of the following is feature of 'Monopoly firm'?


192) Which of the following is not a feature of ' Monopoly firm'?


193) Which of the following is not a feature of ' Monopoly firm'?


194) All of the following are characteristics of a monopoly except: _______.


195) In a monopoly, the monopolist can ______.


196) According to "total revenue & total cost" approach, a monopoly firm attains equilibrium when the difference between its total revenue and total cost is the ______.


197) According to "marginal revenue marginal cost approach" approach, a monopoly firm attains equilibrium when _______.


198) During short run monopolist may ________.


199) The art of selling the same commodity produced under a single control to different buyers at different prices is called _______.


200) Essential condition(s) for price discrimination is/are _______.


201) Essential condition(s) for price discrimination is/are _______.


202) _______ is the basic objective before a discriminating monopolist.


203) Under price discrimination, the seller charges ______ in market having the less elastic demand.


204) Under price discrimination, the seller charges ______ in market having the elastic demand.


205) A non-discriminating monopolist will find that marginal revenue is _______.


206) A monopolistic competition is defined as that market struture each seller produces a _____.


207) The concept of product differentiation means that _______.


208) Which of the following method is adopted for product differentiation?


209) Which of the following is/are feature of monopolistic competition?


210) Which of the following is/are feature of monopolistic competition?


211) Which of the following is not feature of monopolistic competition?


212) Which of the following is not feature of monopolistic competition?


213) Monopolistic competition differs from perfect competition primarily because ______.


214) In short run a firm operating under monopolistic competition may ________.


215) In monopolistic competition, firms earn only ______.


216) A monopolist will maximize profit ______.


217) Free entry and exit condition exist in _____.


218) Single firm in industry is feature of _____.


219) Large number of buyer exists in ______.


220) Uniform price is a feature of ______.


221) Firm in industry is 'price taker'. This is feature of ______.


222) Firm in industry is 'price maker'. This is feature of ______.


223) Price elasticity of demand for individual firm is perfectly elastic. This is a feature of ____.


224) Product differentiation is a feature of ______.


225) No selling costs exist. This is a feature of _____.


226) Tooth paste industry is example of _______.


227) Price discrimination take place in ______.


228) Under which market situation demand curve is linear and parallel to X-axis?


229) AR=MR=P , is a feature of ______.


230) Under ______ market condition, firms in industry make normal profit in the long run.


231) The meaning of the word ’Economic’ is most closely connected with the word


232) Human wants are -


233) “Ends” refer to -


234) “Means” refer to -


235) “Resources “ refers to


236) The means of satisfying wants are


237) Which of the following is an economic activity ?


238) Which of the following is not an economic activity ?


239) Which of the following is an economic activity ?


240) Which of the following is an economic activity ?


241) Which is the following is not correct ?Economic is viewed as


242) Adam Smith considered Economics as -


243) Which of these Economists did not consider Economic as science of wealth ?


244) 14. Alfred Marshal considered Economics as -


245) A.C. Pigou considered Economics as -


246) Economics=study of wealth +study of Man. this definition of economics is attributed to -


247) Lionel Robbins considered economics as


248) Which of the following Economics considered Economics as science of choice making ?


249) Find the correct match -


250) Who expressed the view that “ Economics is neutral between ends ?


251) ……..viewed Economics as a science of dynamic growth and development


252) The law of Scarcity


253) Which of the following is the best general definition of the study of economics ?


254) What implication (s) does resource scarcity have for the satisfaction of wants


255) Rational decision making requires that


256) What is the “ Fundamental Premise” of Economics ?


257) Consider the following and decide which ,economy if any is without scarcity


258) Economics is the study of -


259) Scarcity in Economics is an


260) Resources are scare in relation to


261) In a capitalist economy the allocation of resources is performed by


262) Which of the following statements is incorrect?


263) Inequalities of income do not perpetuate in


264) Which of the following are the features of a fixed economy?


265) Normative Economics is based on


266) Dual system of pricing exist in


267) In Inductive method, logic proceeds from


268) In a capitalist economy, allocation of resources is done by


269) A Capitalist Economy follows the policy of


270) Economics is the science of choice making it implies


271) Which of the following is a part of the subject matter of macro economics?


272) The usual shape of PPC is _____ towards the origin.


273) What will be the shape of PPC when marginal opportunity cost is constant?


274) A capitalist economy is by and large _____


275) Deductive and Inductive methods are complimentary to each other. It is


276) A free market economy’s driving force is


277) "Economics is neutral between ends". This statement is given by


278) A system of economy in which all the means of production are owned and controlled by the private individuals for the purpose of profit, is called


279) Which of these is an example of micro economics ?


280) Macro-Economics is the study of behavior of


281) Micro-Economics is the study of behavior of :


282) Micro-Economics is also called


283) Macro- Economics is also called


284) In Micro-Economics we study about


285) The difference between Micro-Economics


286) Which of the following is not a variable of Macro-Economics ?


287) Which of the following is not a variable of Micro-Economics ?


288) Price theory is the other name of


289) Income theory is the other name of -


290) Micro-Economics is also known as --


291) Price theory is an important constituent of ……..Economics


292) Which of the following is not a v Micro-Economic subject matter ?


293) Which of the following is covered in Macro Economics?


294) Which of the following is covered in Macro Economics ?


295) Which of the following is covered in Micro Economics ?


296) Which of the following is covered in Micro Economics ?


297) The branch of economic theory that deals with the problem of allocation of resources is


298) State which of the following represents macro from the national point of view


299) Which of the following falls under Micro Economics ?


300) Which of the following does not fall under Macro Economics ?


301) Which of the following statement is correct ?


302) ……….deals with the problem of allocation of resources .


303) Economics is -


304) Every science has -


305) Science studies ……and ………between two or more variables


306) Scientific Data /Relationships are -


307) Science has


308) In Economics as a Science ,Cause and between related factors


309) In Economics ,predication about behavior of variables in future -


310) Economics is


311) In Economics, generalization of theories is not possible due to the fact that


312) Economics is


313) Science is theoretical while art is


314) Music is an example of -


315) Art refers -


316) Which of the following is not a feature of Art?


317) Economics is both a Science and an art .This statement is


318) Economics is not a social Science .This statement is


319) Economics as a ………. science only explains “ What is “


320) Economics as a ………. science only explains “ ought to be”


321) A ……….science is descriptive in nature .


322) A ……….science is prescriptive in nature .


323) A ……….science is also called Pure Science .


324) A ……….science involves making value judgments i.e. what is good and what is bad .


325) Which of the following statement is not true ?


326) ………Economics explains economic phenomena according to their causes and effects


327) Which of the following statement is not true about Positive and Normative Science ?


328) Which of the following is a Normative Statement ?


329) Which of the following statements would you consider to be a Normative one ?


330) An example of ‘Positive ‘ economic analysis would be


331) 52. Ram may con harvest this year is poor
Lakshman : don’t worry .price increases will compensate for the fail in quantity supplied
Krishana : climate affects crop yields some years are bad ,others are good
Balram : The government ought to gurantee that our income will not fall
In this conversation ,the normative statement is made by


332) Which of the following statement is normative ?


333) Economics as a positive science should be neutral between ends .This statement is


334) Which of these is false ,if economics is considered as a positive Science ?


335) Which of these is true ,if economics is considered as a positive Science ?


336) Which of these is false, if Economics is considered as a Normative Science ?


337) Which of these is true ,if economics is considered as a Normative Science ?


338) Which of these Economics were of the view that economics is a Normative Science


339) Which of these Economics were of the view that economics is a positive Science ?


340) When we specify that economists should not concerned with whether the society should use its resources towards producing medicines or machine guns, we consider Economics as -


341) When we specify that economists should not be concerned with whether an individual should use his income towards purchasing cigarettes or rice , we consider Economics as -


342) Economics is concerned only with study of economic decision of individuals ,and not with the moral or ethical aspects thereof .This statement consider Economics as -


343) Economics has -


344) While laying down theories (like law of demand law of supply ) ,the ……aspect of Economics is projected and bought out


345) While dealing with issues like how the National Income should be distributed ,what should be the wage rate etc the ……..aspect of Economics is projected and bought out


346) Economic Laws are essentially ……..and ………


347) Economic laws are -


348) Economic laws are merely statements of economic tendencies .This statement is


349) Which of the following is true about economic Laws ?


350) Which of the following statement is true about Economic Laws ?


351) Economic laws are


352) Economic Laws are –


353) Economic Laws are statements which explain-


354) Which of these is law of Economics ?


355) Which of these is a not a law of Economics ?


356) Economic Laws are -


357) Economic Laws are -


358) The methods to derive economic laws are -


359) In Deductive Method ,the logic proceeds from


360) In Deductive Method ,first ………and then ………


361) In_______ Method certain assumptions are made first before analyzing the data


362) ____Method is based on abstract reasoning and subsequent verification with facts


363) ____Method is also called A period Method .


364) The other means for Deductive Method are


365) Demand Theory ,supply Theory, etc have been derived based on


366) Which of the following steps relates only to Deductive Method in Economics ?


367) In deduction Method ,the logic proceeds from -


368) In Inductive Method ,first ………and then ………


369) Inductive Method is ……. Based on the observation of particular facts .


370) 91. Researches in Micro-Economics e.g. principle of acceleration describing the relationship between income and consumption ,have been derived based on --


371) ____Method is based on initial analysis of facts and subsequent reasoning there form


372) For deriving economic laws ,Deductive and Inductive Methods are --


373) Human behavior cannot always be observed experimented and collected as data .This principle is recognized by


374) Facts observed in a certain situation cannot be generalized and universally applied .This principle is recognized by -


375) ……..Method uses statistical techniques extensively to analyze data


376) 'Economics is the study of mankind in the ordinary business of life’ was given by


377) The branch of economics theory that deals with the problem of allocation of resources is


378) A study of how increase in the corporate income tax rate will affect the natural unemployment rate is an example of


379) If a point falls inside the production possibility curve, what does it indicate?


380) The word 'Economics' originates from the word —


381) The word 'Economics' originates from the _____ world 'Oikonomikos'


382) It is assumed in economic theory that


383) 'Oikos', which means —


384) 'Nomos', which means —


385) The task of economic science is to —


386) The meaning of Greek word 'oikonomikus' is —


387) As per the old economists, economics means _____


388) The _____ of the discipline of economics is to study the working of an economy and the issues by it.


389) The nature of economic problems and their solutions is closely linked with the _____ of the economic system.


390) Economics is _____
A. Science
B. An Art
Select the correct answer from the options given below —


391) Economics is a _____
I. Physical science
II. Pure science
III. Social science
IV. Statistical science
Select the correct answer from the options given below —


392) What is the " fundamental premise of economics" ?


393) The central problem in economics is that of —


394) Which of the following is not one of the central questions that the study of economics is supposed to answer?


395) Economics may be defined as the science that explains —


396) Economic choices can be summarized in five big questions. They are —


397) Study of an economy includes: Alternative forms of an economy like _____ economy.


398) Human wants may be classified into: _____


399) Wants can be satisfied by the consumption of ………., are economic wants.


400) In a free market economy the allocation of resources is determined by —


401) A capitalist economy uses _____ as the principal means of allocating resources.


402) In a free market economy, when consumers increase their purchase of a good and the level of _____ exceeds _____ then prices tend to rise.


403) Which of the following can be treated as characteristic of economic wants?
1. Even if satisfied, the wants have a tendency to re-emerge.
2. With the passage of time, the wants tend to increase in number and in variety.
Select the correct answer from the options given below —


404) Which of the following would be considered a disadvantage of allocating resources using a market system?


405) Wants are —


406) The "means" available for satisfaction of wants are _____


407) In a mixed economy, ..........


408) "If economists were laid end to end, they would not reach a conclusion." This is said by —


409) Arrange the following in proper from: Stages as Economics developed as a subject:
I. Material Welfare Definition
II. Wealth Definition
III. Development and Growth Definition
IV. Scarcity and Choice Definition
Select the correct answer from the options given below—


410) Which of the following is the best general definition of the study of Economics?


411) Who is considered to be the founding father of economics?


412) During the eighteenth and the early part of nineteenth century, Adam Smith, considered to be the founding father of modem economics, along with economist(s) like —
X. Alfred Marshall
Y. J. B. Say
Z. Walker
Select the correct answer from the options given below —


413) Who systematized the concept in the form the book which was entitled as, "An Enquiry into the Nature and Cause of the Wealth of Nations"?


414) Adam Smith systematized the concept in the form the book which was entitled as —


415) Adam Smith systematized the concept in the form the book which was entitled as, "An Enquiry into the Nature and Cause of the Wealth of Nations" published in —


416) Who of the following referred economics as the "science of wealth"?
(X) J. B. Say
(Y) Walker
(Z) Adam Smith
Select the correct answer from the options given below —


417) Who of the following referred 'economics' as the science of wealth?


418) Who of the following referred 'economics' as the science of wealth?


419) _____ assumed that, the wealthier a nation, the happier its citizens are.


420) The central point in Adam Smith's definition is —


421) Who defined Economics in terms of "The Science of Wealth"?


422) Which of the following is merit of 'Wealth Definition'?


423) Which of the following is demerit of 'Wealth Definition'?


424) Which of the following is demerit of 'Wealth Definition'?


425) Which of the following is demerit of 'Wealth Definition'?


426) "The produce of the earth all that is derived from its surface by the united application of labour, machinery and capital is divided among three classes of the community, namely, the proprietor of the land, the owner of the stock of capital necessary for its cultivation, and the labourers by whose industry it is cultivated." Thus, "to determine the laws which regulate this distribution is the principal problem in Political Economy". This is said by —


427) Welfare definitions of economics were propounded by —


428) Welfare definitions of economics was propounded by Alfred Marshall and supported by economists like —
(I) A.C. Pigou
(II) J.N. Keynes
(III) Lionel Robbins
Select the correct answer from the options given below —


429) As per _____, "Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man".


430) Alfred Marshall published his book, "_____"


431) Alfred Marshall published his book, "Principles of Economics" in —


432) According to Marshall, "End is the _____".


433) Who was the pioneer of welfare thought?


434) "The range of our inquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money". This definition is given
by-


435) A. C. Pigou published his book "_____"


436) Pigou's definition of economics, was restricted only to economic systems:


437) Welfare definitions of economic are more relevant, comprehensive and scientific than wealth definitions.


438) As per _____, Economics is being regarded as "an engine of social betterment".


439) Who first recognized the significance of human welfare?


440) The important feature(s) of Marshall's definition: ……….


441) Some of the more important criticism against the welfare definitions is/are —


442) Who offered most scientific definition of economics?


443) Lionel Robbins has offered most scientific definition in his famous book, titled ".........."


444) Consider the following and decide which, if any, economy is without scarcity:


445) As per _____, "Economics is the science, which studies human behaviours as a relationship between ends and scarce means which have alternative uses."


446) "Economics is the science, which studies human behaviours as a relationship between _____ which have alternative uses."


447) Scarcity is a situation in which _____


448) As per Robbins definition; Economics is a —


449) As per Robbins definition; Ends refer to the —


450) As per Robbins definition; Human wants are —


451) What implication(s) does resource scarcity have for the satisfaction of wants?


452) Economic goods are considered scarce resources because they —


453) According to _____, economists should concentrate upon the study of the manner in which an economy tries to solve its problem of scarcity of means of satisfaction as compared with its needs.


454) Robbins' definition is superior to the earlier definition because of —


455) Which of the following can be treated as demerit of Robbins' definition?


456) On which of the following themes of economics Samuelson has emphasized?


457) Rational decision making requires that -


458) As per _____, "Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons or groups in society. It analyses costs and benefits of improving patterns of resource allocation".


459) Paul A Samuelson has propounded what has come to be known as the _____ oriented definition of economics.


460) Paul A Samuelson written a book titled —


461) The law of scarcity: ……….


462) Who expressed the view that "Economics is neutral between end"?


463) A subject is considered science if —
X. It is systematized body of knowledge which traces the relationship between cause and effect.
Y. It is capable of measurement.
Z. It has its own methodological apparatus.
Select the correct answer from the options given below —


464) Who said that "An art is a system of rules for the achievement of a given end."?


465) Economics is _____


466) _____ analyses cause and effect relationship between variables but it does not pass value judgment.


467) A positive science states - "………."


468) Who of the following treated Economics as positive science?


469) Who of the following treated Economics as normative science?


470) In a ………. we study a phenomenon as it exists.


471) Which of the following remains strictly neutral as regards ends?


472) Which of the following deals with things as they ought to be?


473) Positive science is _____


474) An example of 'positive' economic analysis would be: ……….


475) Which of the following is positive statement?


476) Which of the following statements would you consider to be a normative one?


477) Positive economic analysis _____


478) Which of the following is normative statement?


479) Which of the following is an example of a normative statement?


480) Which of the following is a normative statement?


481) Which of the following is defined as branch of economic analysis that studies the economic behaviour of the individual unit, a particular household, or a particular firm?


482) A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of —


483) _____ may be defined as that branch of economic analysis which studies behaviour of not one particular unit, but of all the units combined together.


484) Macro economics is the study of —


485) Which of the following does not suggest a macro approach for India?


486) _____ is a study of one particular unit rather than all the units combined together.


487) From the national point of view which of the following indicates micro approach?


488) _____ is a study in aggregates.


489) Micro and Macro Economics were coined by _____ during the twenties, and since then they are frequently used by economists for economic analysis.


490) The branch of economic theory that deals with the problem of allocation of resources is -


491) The publication of _____ General Theory, in 1936, gave a strong impetus to the growth and development of modern macro economics.


492) We mainly study the following in Micro-Economics —
(1) Product pricing
(2) Consumer behaviour
(3) Factor pricing
Select the correct answer from the options given below —


493) We mainly study the following in Micro-Economics —


494) We mainly study the following in Macro-Economics —
I. National income and output
II. General price level
III. Balance of trade and payments
Select the correct answer from the options given below —


495) We mainly study the following in Macro-Economics: ……….


496) We mainly study the following in Micro-Economics: ……….


497) The study of microeconomics includes the study of _____


498) We mainly study the following in Macro-Economics: _____


499) Micro-economics deals with —


500) Micro and macro are not two independent approaches to economic analysis but they are complementary to each other.


501) Which of the following is not a micro economic subject matter?


502) Central problems of an economy is/ are:


503) Central problems of an economy is/ are: …..


504) In economics the central problem is:


505) Who used the concept of the production possibility curve to explain the economic problem of a society?


506) A _____ is the locus of all such combinations of two commodities which can be produced in a country with its given resources and technology.


507) Production possibility curve is _____ to origin.


508) Due to limited availability of natural resources, the country cannot choose any such combination like ‘_____’.


509) If the country chooses the combination point M, i.e., if it produces OX0 of paddy and OY0 of natural rubber then it would indicate —


510) If the country chooses any combination of N and T on the production possibility curve, it implies —


511) If new resources are available or if the level of technology is improved (e.g., application of high-yielding varieties of seeds, better methods of cultivation, better irrigational facilities, etc.) then the whole production possibility curve will shift ..........


512) _____ is the value of alternative foregone in order to have something else.


513) Which of the following are assumptions underlying the PPC?


514) Which of the following bundles of goods could not be produced with the resources the economy currently has?


515) An economy achieves "productive efficiency" when:


516) Which point on the PPF shows a "productively efficient" level of output?


517) Which of the following clearly represents a movement toward greater productive efficiency?


518) Which of the following illustrates a decrease in unemployment using the PPF?


519) If the PPF is linear, i.e., a straight line, which of the following is true?


520) Periods of less than full employment correspond to _____


521) Which of the following would not result in right- ward shift of the PPF?


522) During presidential election campaigns, candidates often promise both more "gun" and more "butter" if they are elected. Assuming unemployment is not a problem, what possible assumption are they making but not revealing to their audience?


523) Which of the following represents the concept of trade-offs?


524) Which of the following would not move the PPF for this economy closer to point W?


525) Moving from point A to point D, what happens to the opportunity cost of producing each additional unit of consumer goods?


526) What is the opportunity cost of moving from point A to point B?


527) Unemployment or under-employment of one or more resources is illustrated by production at point: ……….


528) Which of the following is a reason for the curvature or bowed-out shape of the PPF?


529) Which of the following is a reason for the negative slope of the PPF?


530) If the marginal (additional) opportunity cost is a constant then the PPC would be —


531) Which of the following is likely to cause an inward shift in a country's PPC?


532) The various combinations of goods that can be produced in any economy when it uses its available sources and technology efficiently are depicted by —


533) Production Possibilities curve is also known as —


534) A _____ is one which is characterized by free markets and the absence of government intervention in the economy.


535) _____ is an organization of the society in which the material means of production are owned by the whole commodity and operated by organs, representative of and responsible to, all members of community according to a general plan, all members of community being entitled to get benefits from the results of such socialist planned production on the basis of equal rights.


536) A _____ has been defined as a system in which the public sector and the private sector are allotted their respective roles simultaneously in promoting the economic welfare of the community.


537) Capital intensive technique would get chosen in a _____


538) Which of the following is feature of capitalist economic system?


539) Features of capitalist economic system is/are: _____


540) Labour intensive technique would get chosen in a _____


541) Which of the following is characterized by the policy of laissez-faire on the part of the State Authorities?


542) In capitalism, all economic activities are guided by-


543) Freedom of choice is the advantage of —


544) Consumer sovereignty is a feature of —


545) In an economy people have the freedom to buy or not to buy the goods offered in the market place, and this freedom to choose what they buy dictates what producers will ultimately produce. The key term defining this condition is


546) Which of the following country have features of capitalistic economic system?


547) Socialist economy is a —


548) In which economic system all the means of production are owned and controlled by private individuals for profit.


549) In the words of _____, "Socialism is an organization of the society in which the material means of production are owned by the whole commodity and operated by organs, representative of and responsible to, all members of community according to a general plan, all members of community being entitled to get benefits from the results of such socialist planned production on the basis of equal rights."


550) According to _____, "The fundamental character of socialism consists in its abolition of class relations which form the basis of Capitalist production through expropriation of the propertied class and the socialization of land and capital."


551) The erstwhile _____ is an example of socialist economy.


552) Features of socialist economic system is/are: _____


553) Centralized economic planning is a feature of—


554) Co-existence of public & private sector is a feature of —


555) The term _____ refers to economy-wide fluctuations in production or economic activity such as income employment, savings and investment over several months or years.


556) _____ occurs when national output is rising strongly at a rate faster than the trend rate of growth or long-term growth rate of about 2.5% per year.


557) Characteristic(s) of an economic boom is/are: —


558) Characteristic(s) of an economic boom is/are: _____


559) _____ occurs when the rate of growth decelerates - But national output is still rising.


560) _____ means a fall in the level of real national output i.e. a period when the rate of economic growth is negative.


561) _____ occurs when real national output picks up from the trough reached at the low point of the recession.


562) What is one of the future consequences of an increase in the current level of consumption in the India?


563) ‘Economics is the study of mankind in the ordinary business of life’ was given by:


564) The branch of economics theory that deals with the problem of allocation of resources is:


565) Which one is the feature of Marshall’s definition?


566) A study of how increase in the corporate income tax rate will affect the natural unemployment rate is an example of:


567) If a point falls inside the production possibility curve, what does it indicate?


568) In which types of economy do consumers and producers make their choices bases on the market forces of demand and supply?


569) Under a free economy, prices are:


570) Which of the following falls under micro economics?


571) In a free market economy, when consumers increase their purchase of a goods and the level of ________exceeds ________ then prices tend to rise:


572) Under Inductive method, the logic proceeds from:


573) According to Robbins, ‘means’ are:


574) Which of these would cause a rightward shift of the PPC curve?


575) If the opportunity cost is constant, then PPC would be:


576) Economics is the study of :


577) Mixed economy means:


578) Who defines economics in terms of Dynamic Growth and Development?


579) Which of the following is likely to cause an inward shift in a country's PPC?


580) When we are studying how a producer fixes the price of his products we are studying.


581) Macro-economics doesn't include one example from the following:


582) In Economics, the central economic problem means:


583) All points on PPC show that goods and services are produced at:


584) Which of the following is a cause of an economic problem?


585) Scarcity definition of economics is given by


586) The definition "Economies is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses" was given by:


587) Economics is _________ .


588) Economics is a Science which deals with wealth was referred by:


589) In Micro Economics we study the Economic behavior of:


590) Which of the following statements is correct?


591) Economic goods are goods which:


592) Which of the following mean an Economics activity?


593) Which economy is now a myth only, as no country in the world is having that type of economy?


594) Which of the following is considered production in Economics?


595) Which of the following economies accrue the entire firm in an industry?


596) Which of the following is not concerned with the problem of choice?


597) Which of the following is not included in business economics?


598) Welfare economics is concerned with


599) The problem of 'what to produce' relates to


600) Macro economics does not cover?


601) Positive economics remains strictly neutral towards ends. This means that


602) Normative economics is ________ in nature?


603) Which of the following statement is incorrect?


604) 'Economics is the study of mankind' was referred by:


605) What kind of economics explains the phenomenon of cause and effect relationship?


606) Which of the following steps relates only to deductive method in Economics?


607) Economics is __________ in its methodology and __________ in its application:


608) A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of ___________:


609) The study of economics is not supposed to answer?


610) According to __________ economics is the "the study of how in a civilized society one obtains the share of what other people have produced and of how the total product or society changes and is determined".


611) Robbins neglect problem of:


612) Who describe economics as neutral between ends i.e. pure science:


613) Freedom of choice is the advantage of:


614) Production Possibility Curve (PPC) is also known as:


615) Who said 'Macro-economics examines forest and not the trees' who states this:


616) Business Economics contains:


617) The study of National Income is called


618) Who said economics is the study of choice making decisions


619) The economy is said to be __________ , when aggregate economic activity is declining.


620) Opportunity costs are a result of _________ .


621) Who said trade cycles are a purely monetary phenomenon?


622) At which phase of Business cycle cost of living increases?


623) Which of this is not covered under the scope of Business Economics?


624) ______ is the want satisfying power of the product.


625) _______ refer to the quantity of goods or services, that Consumers are willing and able to purchase/buy in a given market, at various prices, in a given period of time.


626) Demand refers to the quantity of goods or services that are willing and able to purchase/buy in a given market, at various prices, in a given period of time.


627) ___________ Demand refers to the quantity of goods or services that are willing and able to purchase/buy in a given market, at various prices, in a given period of time.


628) On which of the following the Effective Demand for a thing depends?


629) For want to become an Effective, Demand, it must be backed by the


630) Which of the following is an important aspect in Demand?


631) In the Context of Demand, the availability of money with the Consumer, in order to purchase the Commodity is Called


632) Purchasing Power refers to


633) Purchasing Power refers to


634) Unless Demand is backed by purchasing power or ability to pay, it does not constitute Demand. This statement is


635) In the context of Effective Demand, Willingness to spend means


636) For Demand to be effective, the Commodity should be available


637) Demand arises in respect of


638) Demand arises in respect of


639) Demand arises in respect of


640) Demand arises in respect of


641) Demand for final Consumption arises in


642) Demand for enter ideate consumption arises in


643) Demand for recourses and factors of production is


644) _________ individual demand is also called


645) __________ household demand is also called


646) Individual demand shows the quantities of demand for a commodity at various prices by


647) Industry demand is also called


648) Market demand is also called


649) Market demand shows the quantities of demand of a commodity at various prices by-


650) Market demand is the sum total of


651) _________ is the sum total demand of all invidual in the market.


652) If A = household demand and B = market demand, then


653) If household demand and market demand are equal in a situation it means that


654) The total demand for the product of an individual firm at various prices is known as


655) If market demand and firms demand are equal in a situation, it means that


656) If individual demand = market demand = firms demand, it means that


657) Which of the following most the price level in the very short - run period?


658) Which of the following is not a dettreminent of demand?


659) All of the following are determinants of demand except


660) Which of the following is a detriment of individual demand?


661) When a consumer prefers a commodity due to presets attached to it, it is known as


662) When a consumer wants a product by seeing another person use that product it is called


663) Demonstration effect is generally found in respect of


664) Goods covered by demonstration effect can be best described as


665) In which of the following will the demonstration effect be high?


666) ________ are goods which are consumed together or simultaneously.


667) Complementary goods are goods which are consumed


668) The demand for two-wheelers is likely to decrease with an increase in petrol prices because two-wheelers and petrol are


669) Which of these is not a complementary good for pen?


670) If an increase in the price of blue jeans leads to an increase in demand for tennis shoes, then blue jeans and tennis shoes are


671) If two goods are compliments, it means that a rise in the price of one commodity will lead to


672) In case of complimentary goods, increase in price of a product will


673) In case of Complementary Goods, decrease in price of a product will


674) If X and Y are Complementary Goods, the price of X and the Demand of Y are


675) If X and Y are Complementary Goods, if there is an increase in Price of X, then


676) If X and Y are Complementary Goods, if there is an decrease in Price of X, then


677) __________ are goods which are consumed in place of one another.


678) Subsititute Goods are goods which can be used


679) Which of the following pairs of goods is an example of Substitutes?


680) Which of the following is an example of Substitutes?


681) Which of the following pairs of goods in an example of substitutes?


682) In case of Substitute Goods, increase in price of a product will


683) If X and Y are Substitute Goods, the price of X and the Demand of Y are


684) When the Price of a Substitute of X Commodity falls, the Demand for X


685) If the Price of Product A increases relative to the Price of Substitute B & C, the demand for


686) If the Price of Pepsi decrease relative to the Price of Coke and 7- Up, the demand for


687) If Tea and Coffee are Substitutes, a fall in the Prices of Tea leads to: (i) Rise in the demand for Tea. (ii) Fall in the supply of Coffee. (iii) Fall demand of X and Y will increase. (iv) Rise in the supply of Tea.


688) If X and Y are Substitute Goods, if there is an increase in Price of X, then


689) If X and Y are Substitute Goods, if there is an decrease in Price of X, then


690) In which phase of the business cycle to Producers try to sell out their inventories?


691) Which of the following Statements is not true about Individual Demand?


692) What effect does an increase in the price of a product have on the Purchasing Power of the Consumer?


693) The Demand for a commodity depends only upon the money income of the household. This statement is


694) If demand decrease with an increase in money income of Consumers, such goods are called


695) Giffen Goods are


696) Inferior Goods are also called


697) The Giffen Effect in respect of Inferior Goods was observed in the case of


698) As income levels increase, the demand for goods satisfying Necessities of life, will be _________ to the increase in income.


699) If Income Levels increase, and the demand for goods increase by less than proportionate extent, such goods will be


700) If Income Levels increase, and the demand for goods increase by more than proportionate extent, such goods will be


701) As Income Levels increase beyond a certain extent, such goods will be


702) Generally, larger size of population of a country or a region implies _______ for all commodities as such.


703) In case of unequal distribution of income in the country, the propensity to consume will be ________ and demand for Consumer Goods will be ___________.


704) If the Consumers expect an increase in prices of the product in the future, its current demand will be


705) If the Consumers expect a decrease in prices of the product in the future, its current demand will be


706) Demand is affected by weather conditions and seasonal aspects also. This statement is


707) Demand for Air Conditioners, Water Coolers, Refrigerators show an increase during


708) ______ shows various combinations of two production that give same amount of satisfaction.


709) Total utility is maximum when:


710) An indifference curve is always:


711) Marginal utility curve of a consumer is also his


712) At equilibrium, the slope of the indifference curve is:


713) The law of equi marginal utility considers price of money as:


714) Marginal utility approach was given by:


715) Indifference curves between income and leisure for an individual are generally:


716) In case of a right angled indifference curve the goods are:


717) Indifference curves never intersect each other due to


718) A budget constraints line is a result of:


719) The difference between what a consumer is ready to pay and what he actually pays is


720) Total utility derived from the consumption of a commodity is equal to Rs. 5. Marginal utility is equal to 1 and consumer has bought 3 units. What will be his consumer surplus?


721) A consumer buys two commodities X and Y, he would be in eualibrium when:


722) _________ refers to how much quantity of a product or service is desired by buyers.


723) The ________ is the amount of a product people are willing to buy at a certain price.


724) The law of demand is __________.


725) Which of the following thing(s) is/are essential to become effective demand?
X. Desire for a commodity.
Y. Willingness to pay.
Z. Ability to pay for the commodity.
Select the correct answer from the options given below:


726) As per _____, "A fall in the price of a commodity causes a household to buy more of that commodity and less of the other commodities which compete with it, while rise in price causes the household to buy less of this commodity and more competing commodities."


727) According to law of demand, _____, if the price of a commodity falls, the quantity demanded of it will rise and if the price of a commodity rises, its quantity demanded will decline.


728) The Law of Demand, assuming other things to remain constant, establishes the relationship between: ___________


729) As per law of demand, other things being equal, if the price of a


730) According to law of demand, other things being equal, if the price of a commodity rises, its quantity demanded will


731) Demand is the _____


732) The law of demand assumes that _____ remain the same in a given period.


733) The good which cannot be consumed more than once is known as ______________.


734) The law of demand assumes that _____ remain the same in a given period.


735) A relative price is _____


736) As per law of demand, there is _____ between price and quantity demanded, other things being same.


737) Ceteris Paribus means _______


738) Demand for goods by an individual or the market as a whole is conventionally expressed in the form of -
I. Demand schedule.
II. Demand function.
III. Demand curve.
Select the correct answer from the options given below?


739) A _____ of an individual buyer is an algebraic form of expressing his demand behaviour.


740) A _____ is a tabular form of describing the relationship between quantities demanded of a good in response to its price per unit, while all non-price determining variables remain unchanged.


741) The quantity demanded of a goods or service is the amount that __________


742) Which of the following is a graphic representation of the demand schedule?


743) A demand curve


744) All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?


745) If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be: ____________


746) In economics, _____ of a good is its expected capacity to satisfy a human want.


747) Which of the following statement is correct in relation to 'utility'?
(I) Utility of a good is same from consumer to consumer.
(II) The utility of a good keeps constant even for the different consumer on account of changes in the intensity of the want to be satisfied by its use.
(III) The utility of a good is not to be equated with its usefulness.
Select the correct answer from the options given below?


748) In economic theory, utility can be measured by:
1. Cardinal Approach.
2. Ordinal Approach.
Select the correct answer from the options given below?


749) Which of the following approach assumes that utility can be measured in terms of number like 1, 2, 3, 4 & 5?


750) _____ an _____ Economist, severely criticized the concept of cardinal utility.


751) Who introduced the approach of ordinal utility?


752) According to the _____, a consumer has a given scale of preference for different combinations of two goods. It is assumed that consumer can rank the goods like 1st, 2nd, 3rd, 4th.


753) Statement I: Utility of a good to the consumer should be measured in units of money which the consumer is willing to pay.
Statement II: Utility and usefulness are one and same thing.
Select the correct answer from the options given below?


754) _____ is the summation of utilities derived from all the 'n' units.


755) If total utility is divided by number of units it is known as


756) The additional satisfaction a consumer gains from consuming one more unit of a goods or service is


757) Symbolically total utility is shown


758) Symbolically average utility is shown


759) Symbolically marginal utility is shown


760) At the time of consumption of _____ Total utility, Average utility, Marginal utility are same.


761) Average utility at 2nd unit?


762) Total utility at 3rd unit?


763) Average utility at 3rd unit?


764) Average utility at 5th unit?


765) Total utility at 6th unit?


766) Total utility at 7th unit?


767) Total utility at 8th unit?


768) Average utility at 9th unit?


769) If marginal utility is zero


770) When economists speak of the utility of a certain good, they are referring to ______________.


771) _____ states that as the stock of a commodity increases with the consumer, its marginal utility to the consumer decreases.


772) The law of diminishing marginal utility states that as the stock of a commodity increases with the consumer, its _____ to the consumer decreases.


773) The law of diminishing marginal utility states that as the stock of a commodity _____ with the consumer, its marginal utility to the consumer _____.


774) _____ says that "the additional benefit which a person derives from a given increase in his stock of a thing diminishes with every increase in the stock that he already has."


775) Which of the following assumption is applicable for law of diminishing marginal utility?


776) Which of the following assumption is applicable for law of diminishing marginal utility?


777) Which of the following assumption is not applicable for law of diminishing marginal utility?
(i) All the units of the given commodity are heterogeneous.
(ii) The units of consumption are of unreasonable size.
(iii) The consumer is rational human being and he aim at minimization of satisfaction.
Select the correct answer from the options given below:


778) Which of the following is exception to the law of diminishing marginal utility?


779) The concept of marginal utility plays a central role in


780) Which of the following is limitation of law of diminishing marginal utility?


781) _____ states that consumer distributes his expenditure between different goods in such a way that the marginal utility derived from the last rupee spent on each good is the same.


782) The law of equi-marginal utility can be presented symbolically: _____


783) As per law of equi-marginal utility the consumer's equilibrium will change if there is a change in:
1. His total expenditure.
2. Marginal utility schedule of any good.
3. Price of any good.
Select the correct answer from the options given below:


784) The law of equi-marginal utility was stated by


785) _____ is the situation when a consumer secures maximum satisfaction out of his expenditure.


786) Consumer attains the equilibrium position at a point when he maximizes his total utility given his income and price of commodities he consumes.


787) As per _____ a consumer with a single commodity attains equilibrium at a point where: MU = Price.


788) Which of the following can be treated as limitation of the law of equi-marginal utility


789) Demand is a __________.


790) Which one of the following formula will be used for the computing the price elasticity of demand?


791) Normal goods have:


792) If the goods are complementary like car and petrol, their cross elasticity is:


793) If demand for a good is elastic, an increase in its price will cause total expenditure of the consumers of the goods to:


794) Types of change in demand are


795) Slope of demand curve has __________ relation with price elasticity of demand.


796) In case of a Giffin good, the demand curve will be:


797) In the case of a Giffin good, the demand curve will be


798) In case of an inferior good the income elasticity of demand is:


799) When quantity demanded change by larger percentage than does price, elasticity is termed as:


800) Of the following commodities, which has the lowest elasticity of demand?


801) The graphic presentation of demand schedule in called


802) Income-elasticity for the household when the income of a household rises by 5% and the demand for bajra falls by 2%.


803) If as a result of 10% increase in price, the quantity supplied does not change at all, it implies that the elasticity of Supply is:


804) The demand curve is also known as:


805) Supply of a good and its price have


806) An expansion in the supply of a good is caused by a:


807) Which of the following has the lowest price elasticity of supply?


808) Two goods for which an increase in the price of one leads to an increase in the demand for the other called


809) Inferior goods is a goods for which, other things equal an increase in ___________ lends decrease in demand.


810) If the proportion of income spent on a goods decreases as income rises then income elasticity is:


811) If two goods are totally unrelated, then cross elasticity between them is:


812) Which factor does not influence elasticity of demand will be


813) Supply of a Commodity is a:


814) Generally supply curve of industrial products is


815) The fall in the price of one commodity leads to fall in demand for other commodity & vice versa for


816) When the demand of a commodity also depends upon prices of the substitutes & complementaries or relative prices then it is called


817) When a commodity with many uses is demanded then it is called


818) The fall in the price of one commodity leads to increase in demand for other commodity is called


819) When a no. of goods are required collectively for one purpose, it is called


820) The collective demand of all persons in the market is referred as


821) Decrease or fall in the price of commodity leads to increase in demand because of


822) Who has given four major exceptions to the law of demand?


823) When quantity demanded changes only due to change in price then it is called


824) When quantity demanded changes due to factors other than price, it is called


825) In case of contraction or extension in demand, the movement is along a demand curve whereas in case of increase or decrease, the demand curve will move


826) Proportionate Method of measurement of elasticity of demand is also known as


827) The law of variable proportions is


828) In case of Giffen goods, price effect is


829) In case of inferior goods, price effect is


830) Positive income effect is greater than negative substitution effect in case of


831) If demand curve is horizontal, then ep is equal to


832) If demand curve is vertical, then e is equal to


833) If demand curve is rectangular hyperbola, ep is equal to


834) If as a result of increase in price, total outlay on the commodity remains same, then the ep is equal to


835) In case of Giffen goods, demand curve will slope


836) In case of Veblen goods, demand curve will slope


837) Relationship between the income level and the quantity of commodity purchased by the consumer is represented by which curve?


838) Certain goods for which quantity demanded decrease when income increases are called __________.


839) In case of an inferior good, the income elasticity of demand is:


840) For what types of good dies demand fall with a rise in income levels of households?


841) In case of Inferior goods like bajra, a fall in its price tends to:


842) Movement along the same demand curve shows:


843) The price of hot-dogs increases by 22% and the quantity demanded for hot dogs is:


844) The quantity demanded does not respond to price change and so the elasticity is:


845) What is an Engels of curve?


846) Which factor generally keeps the price-elasticity of demand for a good low:


847) In case pf straight line demand curve meeting the two axes, the price elasticity of demand at the mid-point of the line would be:


848) An increase in demand can result from:


849) Compute income elasticity if demand increase by 5% and income by 1%


850) For a commodity with a unitary elastic demand curve if the price of the commodity rises, then the consumer's total expenditure on this commodity would:


851) What is the value of elasticity of demand if the demand for the good is perfectly elastic?


852) What is the original price of a commodity when price elasticity is 0.71 and demand changes from 20 units to 15 units and the new price is Rs. 10?


853) If the price of any complement goods rises:


854) Croses elasticity of demand in Monopoly market is:


855) What is income elasticity of demand. When income changes by 20% and demand changes by 40%?


856) If the demand is parallel to x axis, what will be the nature of elasticity?


857) Giffen Paradox is an exception of


858) Law of Demand is


859) The demand of which type of goods do not decrease with increase in its price


860) Increase in Price from Rs. 4 to Rs. 6 then decrease in demand from 15 units to 10 units. What is the price elasticity. (points elasticity)


861) Expansion & contraction of Demand curve occurs due to


862) Elasticity between two points


863) Demand of a commodity depends upon


864) In case of substitute goods, cross elasticity is ________.


865) Suppose the price of movies seen at a theatre rises from Rs.120 per person to Rs. 200 per person. The theatre manager observed that the rise in prices has lead to a fall in attendance at a given movies from 300 persons to 200 persons. What is the price elasticity to demand for the movie?


866) The prices of a commodity were increased from Rs. 4 and Rs. 6. As a result demand decreased from 15 units to 10 units. What is the price elasticity? (Point elasticity)


867) Other things remaining constant, if the price of the inferior goods decreases then what will be the effect?


868) When price falls from Rs. 6 to Rs. 4, the demand rises from 10 to 15 units. Calculate price elasticity of demand.


869) Crose elasticity of perfect substitutes is:


870) What is Engel's Curve?


871) A consumer spends Rs. 80 on purchasing a commodity when its price is Rs. 1 per unit and spends Rs. 96 when the price is Rs. 2 per unit. Calculate the price is Rs. 2 per unit. Calculate the price elasticity of demand.


872) When the price of cylinder rises form Rs. 120 to Rs. 200, the demand falls from 300 to 200. Calculate price elasticity of demand.


873) If the price a decreased from Rs. 10 to Rs. 8 of a commodity but the quantity demanded remains the same price elasticity is ______________.


874) Demand for a electricity power is elastic because ____________.


875) If income of person increases by 10% and his demand for goods increases by 30% income income elasticity will be _______.


876) In case of luxury goods, the income elasticity of demand will be ______


877) In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets y-axis would be __________.


878) Calculate income elasticity for the household when the income of the household increase by 10% and the demand for cars rises by 20%


879) The commodity whose demand is associated with the name of Sir Robert Giffen?


880) In expansion and contraction of demand ______.


881) When price falls by 5% and demand increase by 6%, then elasticity of demand is _________.


882) Cross elasticity of complementary goods is:


883) Demand of i-pod increase from Rs. 950 to Rs. 980 and income increase from Rs. 9,000 to Rs. 9,800. What is income elasticity?


884) Supply can be referred as


885) The supply of a product refers to


886) Supply of commodity is a


887) __________ refers to the quantity of goods or services that producers are willing and able to offer to the market at various prices during a period of time.


888) Supply refers to the quantity of goods or services, that _________ are willing and able to offer to the market oat various prices during a period of time.


889) Supply quantity is the same as Sales Quantity. This statement is


890) Supply refers to what firms offer for sale, and not necessarily to what they succeed in selling. This statement is


891) To constitute Supply, the producing firms must have


892) Supply refers to the ___________ by producing firms.


893) Period in which supply cannot be increased is called


894) ____________ is the total volume of the commodity which can be brought into the market for sale at a short notice.


895) ________ refers to the quantity which is actually brought in the market.


896) Supply is different from stock. This statement is


897) Stock is potential supply.


898) Stock refers to quantity __________ into the market, whereas Supply refers to quantity ___________ into the market.


899) Which of the following factors is not a determinant of Supply?


900) Which of the following factors is not a determinats of supply?


901) Generally, higher the prices of products, higher the ___________.


902) Producing firms are guided by


903) Other things being equal, if the price of the commodity is higher, __________ quantities thereof will be supplied to the market.


904) Prices of related commodities are not a determinant of supply of a particular commodity. This statement is


905) Generally, supply of a product X will be ___________ if the prices of goods other than x increase.


906) Generally, supply of a product x will be __________ if the prices of goods other than x decrease.


907) Supply of product decreases when the prices of other related goods increase. This is because.


908) If there is an increase in the prices of factors of production, cost of production of that product will


909) If there is an decrease in the prices of factors, of production, cost of production of that product will


910) Other things being equal, if the cost of production of a commodity is higher, ________ quantities thereof will be supplied to the market.


911) Other things being equal, if the cost of production of a commodity is lower, ____________ quantities thereof will be supplied to the market.


912) Inventions and innovations lead to


913) Other things being equal, if the state of technology in relation to a commodity increases, __________ quantities thereof will be supplied to the market.


914) Inventions and innovations lead to


915) Other things being equal the supply quantity of a product is _____________ related to its price.


916) Other things being equal, the supply quantity of a product is _________ related goods.


917) Other things being equal, the supply quantity of a product is ___________ related to the cost of production of that product


918) Generally, if there is an increase in commodity Taxes (Excise duty, Custom duty, VAT, etc) leading to increase in their cost of production, the supply quantity will


919) Generally, if there are incentives like subsides which reduce the cost of production, the supply quantity will


920) In case of failure of rains, floods, fires, etc. the supply of agricultural commodities will


921) In case of better rainfall, improvement in imgation, improved seeds, etc. the supply of agricultural commodities will


922) Which of the following is the only determinant that the Law of Supply takes into account?


923) As per Law of Supply, other things being equal, if the price of a commodity increases, its supply quantity will


924) As per Law of Supply, other things being equal, if the price of a commodity decrease, its supply quantity will


925) The assumption 'Ceteris Paribus' in the Law of Supply stands for


926) As per Law of Supply, other things being equal, there is a __________ between price and quantity supplied.


927) ________ shows the quantity of products a producer or seller wishes to sell at a given price level.


928) Generally, the Supply Curve


929) Generally, the Supply Curve


930) Typically, the Supply Curve


931) The Supply Curve


932) The market supply curve is a lateral summation (totaling)of Individual Supply Curves of all producing firms. This statement is


933) What would be the shape of the supply curve of the toys, if a seller offers to sell any number of toys as Rs. 100?


934) Increase or decrease in the quantity supplied occurs due to


935) While recognizing increase or decrease in the quantity supplied, we assume __________ remain constant.


936) When there is a movement on the supply curve, we are referring to


937) Change in quantity supplied causes


938) When there is a change in quantity supplied


939) In case of increase/decrease in quantity supplied, the position of the supply curve remains the same. This statement is


940) Increase in quantity supplied, due to changes in price, may also be called


941) When more units of the product are supplied at a higher price, it is called


942) Contraction of supply is the result of


943) Increase or decrease in supply occurs due to


944) When there is a movement of the supply curve, we are referring to


945) Change in supply means


946) When there is a change in supply


947) When higher quantities are supplied, due to changes in factors other than price, it is called


948) When lower quantities are supplied, due to changes in factors other than price, it is called


949) Which of the following factors will not result in the shifting of supply curve for software packages?


950) An increase in the supply of a product is caused by


951) An increase in the supply of a product is caused by


952) An increase in the supply of a product is caused by


953) A decrease in the supply of a product is caused by


954) Increase or decrease in supply means


955) If supply curve is perfectly inelastic, the supply curve is:


956) When supply price increase in the short run, the profit of the producer _______:


957) A change in the supply of a commodity along with same supply curve may occur due to:


958) What is the elasticity of supply when price changes from Rs. 15 to Rs. 12 and supply change from 6 units to 5 units?


959) A perfectly inelastic supply curve will be


960) If the supply of a commodity is perfectly elastic, an increase in demand will result in:


961) When change in the quantity supplied is proportionate to the change in the price, the producer is said to have _______________:


962) Expansion in supply refers to a situation when the producers are willing to supply a:


963) When supply is perfectly inelastic, elasticity of supply is equal to:


964) If there is an improvement in technology _______:


965) If the price of apples rises from Rs. 30 per kg to Rs. 40 per kg and the supply increase from 240 kg to 300 kg. Elasticity of supply is:


966) A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:


967) Supply refers to quantity supplied at a particular price for a particular period of time:


968) When price remains constant and quantity demanded changes, then the elasticity of demand will be:


969) Increase or decrease in supply menas:


970) Supply refers to _________.


971) Supply is a __________.


972) Supply refers to the quantity which a firm is


973) Law of supply explain the relationship between


974) As per law of supply, price and quantity supplied exhibits relationship.


975) According to law of supply:


976) The quantity that an individual supplier is prepared to supply over a period of time is a function of


977) Normally supply curve is


978) Law of supply operates under


979) Under law of supply ceteris paribus conditions includes


980) The minimum price that a supplier expects to make available a specific quantity for sale is called


981) The maximum quantity that a supplier is prepared to supply in the market at a given price is called


982) Which of the following is not a factor in market supply of a product?


983) If the supply of a product remain same with the increase in price, the possible reasons can be


984) Quantity supplied is a function


985) __________ is not a determinant of aggregate supply.


986) _________ is not a factor of quantity supplied.


987) ________ is not a factor in market supply of product.


988) Shift in supply curve is caused by


989) Change in cost of production of the concerned goods causes


990) The ___________ refers to the amount of a certain good producers are willing to supply when receiving a certain price.


991) The supply of a good refers to: _________


992) According to __________ , supply always means a schedule of possible prices and amounts that would be sold at each price.


993) _____________ states: "Other things being equal, the quantity of any commodity that firms will produce and offer for sale is positively related to commodity's own price, rising when price rises and falling when price falls."


994) The law of supply states that a firm will produce and offer to sell greater quantity of a product or service as the price of that product or services rises, other things being equal.


995) There is ________ between price and quantity supplied.


996) The quantity supplied of a goods or service is the amount that ____________.


997) Supply for goods by an individual or the market as a whole is conventionally expressed in the form of ?
1. Supply schedule.
2. Supply function.
3. Supply curve.
Select the correct answer from the options given below:


998) A ____________ of an individual supplier is an algebraic form of expressing his behaviour with regard to what he offers in market at the prevailing prices.


999) In the book market, the supply of books will decrease if any of the following occurs except


1000) A _________ is a tabular statement that shows different quantity or service that are offered by the firm or producer in the market for sale at different prices at a given time.


1001) The individual _________ is a graphical representation of the information given in individual supply schedule.


1002) _________ relates to the supply of a goods or service by one firm at different prices, other things remains constant or equal.


1003) ___________, is the sum of the amount of food supplied for sale by all the firms or producers in the market at different prices during a given time.


1004) The supply curve slopes


1005) Law of supply states that there exist ____________ between the price of a product and its quantity supplied, ceteris paribus.


1006) If the supply changes due to change in price, it is called


1007) If the supply changes due to change in other things (determinants), it is called as


1008) Which of the following is the determinant in the Law of Supply?


1009) While recognizing increase or decrease in the supply we assume ____________ remain constant.


1010) If supply shift to Point b or Point c from Point a, it is known as


1011) If supply shift to Point b or Point c from Point a, it is known as


1012) When a consumer moves from one point to another on the same supply curve it is called as


1013) When the entire supply curve shifts its position it is called as ___________.


1014) If due to increase in 'price', quantity supplied goes upward it is known as __________.


1015) If due to decrease in 'price', quantity supplied goes downward it is known as ___________.


1016) If due to change in 'other things' (determinants), quantity supplied goes upward it is known as ___________.


1017) If due to change in 'other things' (determinants), quantity supplied goes downward it is known as _________.


1018) Demand Schedule shows the relation between


1019) In a typical Demand Schedule, quantity demanded


1020) ___________ Indicates the charges in Consumer's purchasing habits, depending on the price variation of a particular product.


1021) A demand Curve shows


1022) A Demand Curve deal with ___________.


1023) While drawing the demand curve, the change in place in which the following factors?


1024) Generally, the Demand Curve slopes


1025) Demand Curve in most cases slopes


1026) Demand Curve in most cases has a


1027) Demand Curve ____________


1028) All but one of the following are assumed to remain the same while drawing an individual's demand curve for a product. Which one is it?


1029) If regardless of changes in it price, the quantity demanded of a product is unchanged, then, demand curve for that product will be


1030) If any quantity at the same price, then, the demand curve for that product will be


1031) What is the other name given to the demand curve?


1032) What is the other name given to the revenue curve?


1033) Why is the demand curve otherwise known as the average revenue curve?


1034) The total area under the demand curve of a product measures


1035) If marginal utility of a product remains constant, the demand curve will be


1036) In a demand curve, the horizontal axis will be


1037) In a demand curve, the vertical axis will be


1038) Which of the following is not depicted in a typical demanded curve?


1039) A typical demand curve cannot be:


1040) When price decreases, quantity demanded increase it is known as


1041) Which of the following is not the exception to the law of demand?


1042) When price elasticity is found between two points is known as:


1043) Luxury goods are price _________ while necessities are price ________.


1044) The elasticity of substitution between two perfect substitutes is ___________.


1045) Slope of a demand curve is determined by


1046) Demand for car decreases due to increase in price. It implies that car and petrol are _________.


1047) Effect of change in the price of a product on the consumer's purchasing power is __________.


1048) __________ goods are those goods which are consumed together simultaneously.


1049) Larger the size of the population of a country or region __________ is the demand for commodities.


1050) Demand can be defined as:


1051) Movement along the demand curve is due to the following reason:


1052) If two goods are perfect substitute for each other cross elasticity is ____________.


1053) Budget line is also known as:


1054) Demand remains constant, decrease in supply means __________ in equilibrium price.


1055) A vertical supply curve parallel to the Y-axis implies that the elasticity of supply is:


1056) Total expenditure method of measuring elasticity was formulated by


1057) For luxuries, the elasticity is _________


1058) Cardinal utility approach can be measured in


1059) A monopolist charging high price operates on


1060) Product differentiation is a common feature in


1061) For a competitive Firm, its demand curve is


1062) The short run equilibrium condition of a competitive Firm is


1063) For a good, TR is always constant. Then elasticity of demand is


1064) Existence of large no. of buyers and sellers means


1065) The products sold in the competitive market are


1066) Even if it makes loses in the short run, a competitive Firm will operate if it


1067) Normal profits mean


1068) Competitive Firms in the long run earn


1069) Which of the following describes price discrimination in a monopoly?


1070) To maximize its profits during the short run a Firm should produce the output that will


1071) A Perfectly Competitive Firm will always expand output as long as


1072) In a monopoly with downward sloping demand, Marginal Revenue is greater than price when


1073) When the price of products of a Firm in a perfectly competitive market is less than its average total cost then the Firm


1074) In a monopoly market we have


1075) If Firms are earning supernormal profits under perfect competition in the short run then in the long run


1076) If profits are greater than zero, it means


1077) The long run equilibrium in a competitive market is


1078) The product sold by a monopolist has


1079) A competitive Finn in the short run incurs losses. The Firm continues production if


1080) In conditions of pure competition, in which the demand for a Firm's product is infinitely elastic, the Firm's average revenue curve will be


1081) If the demand curve confronting an individual Firm is perfectly elastic, then


1082) For a monopolist


1083) If the demand curve of a monopolist is downward sloping, the MR curve is


1084) Given the slope of AR for a monopolist, the slope of MR will be


1085) A monopolist can


1086) If a monopolist varies p instead of q to maximize profit, the equilibrium condition is and MC must be rising


1087) A monopolist will never operate on the


1088) In the short run the monopolist can earn


1089) Which of the following factors or principle is/are responsible for the operation of the law of demand, or for the downward slope of demand curves?
(X) The law of diminishing marginal utility.
(Y) The law of equi-marginal utility.
(Z) Increased real income.
Select the correct answer from the options given below:


1090) Which of the following factors or principle is/are responsible for the operation of the law of demand, or for the downward slope of demand curves?


1091) If the demand changes due to change in price, it is called


1092) If the demand changes due to change in other things, it is called as


1093) When a consumer moves from one point to another on the same demand curve it is called as


1094) When the entire demand curve shifts its position it is called as


1095) If due to increase in 'price', quantity demanded goes downward it is known as


1096) If due to decrease in 'price', quantity demanded goes upward it is known as _______


1097) If due to change in 'other things', quantity demanded goes upward it is known as


1098) If due to change in 'other things', quantity demanded goes downward it is known as


1099) Contraction of demand is the result of


1100) A movement along the demand curve for soft drinks is best described as _________


1101) There is no exception to law of demand?


1102) Which of the following is/are exception to the law of demand?
I. Conspicuous necessities.
II. Giffen goods.
III. Change in fashion.
IV. Conspicuous consumption.
Select the correct answer from the options given below:


1103) If, as people's income increases, the quantity demanded of a good decreases, the good is called _________.


1104) In the case of a Giffen good, the demand curve will be: ______________.


1105) The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are ____________.


1106) Conspicuous goods are also known as ___________.


1107) Goods which are consumed by weaker section of society are known as __________.


1108) With an increase in the price of diamond, its demand also increases. This is because it is a: __________.


1109) Goods which are used by rich people to show their status are known as __________.


1110) Some special varieties of inferior goods are termed as


1111) Which of the following is Giffen good(s)?


1112) Which of the following is not Giffen good(s)?


1113) The concept of Elasticity of Demand was developed by


1114) Two important factors which make difference in the Elasticity of Demand for commodities are


1115) Elasticity of Demand refers to


1116) Elasticity of Demand is attributed to


1117) Elasticity of Demand is attributed to


1118) Which of the following statements regarding Elasticity of Demand is true?


1119) Which of the following statements is true with regard to the elasticity of demand?


1120) Price Elasticity of Demand is defined as


1121) Price Elasticity of Demand is defined as the responsiveness of


1122) Price Elasticity of Demand for a product is


1123) Price Elasticity of Demand is given by


1124) Usually, the demand for Necessities is


1125) Demand for which of the following products is/are relatively inelastic?


1126) Which of the following products has highly inelastic demand?


1127) Amongst the following which item has highest Price Elasticity?


1128) In the context of Elasticity of Demand, the paradox of plenty relates more to items in the


1129) Goods which have more close or perfect substitutes are


1130) Goods which have fewer substitutes are


1131) Goods having higher proportion of the consumer's spending are


1132) Goods having lower share in the consumer's budget are


1133) Luxury Goods are considered _____________ than Necessity Goods


1134) Necessary Goods are considered ___________ than Luxury Goods.


1135) Salt is ____________ to price changes than Motor Car.


1136) Cell phone is ________ to price changes than bread.


1137) Goods which can be put to multiple uses are


1138) Goods which have a specified and particular use are


1139) Demand for electricity is elastic because


1140) Goods in respect of which the Consumers have more time to adjust or modify their consumption pattern are


1141) Goods in respect of which the consumers do not have time to adjust their consumption pattern are -


1142) Goods in respect of which the use or consumption can be postponed are


1143) Goods which are required for immediate or urgent consumption are


1144) Medicine have less elastic demand since


1145) Goods which are subject to Consumer Habits, e.g. Cigarette, Liquor, etc are


1146) What would be the value of elastic of demand, if the demand for thee good is perfectly inelastic?


1147) If the demand for the goods is perfectly inelastic the demand curve will be


1148) Vertically demand curve will show that the price elastically of demand is


1149) For goods with perfectly inelastic demand


1150) If the demand for the good is perfectly inelastic, which of the following is correct?


1151) If the demand for the good is perfectly inelastic, and E is the measure of Elasticity, which of the following is true?


1152) For goods with perfectly inelastic demand


1153) Indentify the factor which generally keeps the price


1154) Indefinite the coefficient of price elastic of demand when the percentage increase in the quantity demanded of a product is similar than the percentage falls in at price


1155) Price elastic of demand for addictive product would be


1156) If electricity demanded and electric rates increase, which of the following is lightly to occur?


1157) For goods with less elastic demand


1158) If the demand for the goods less elastic which of the following is true?


1159) If the demand for the goods is less elastic, the demand curve will be


1160) If a product has less elastic demand, and there is a change in its price, which of the following is correct?


1161) If the demand for a good is unit elastic, the value of the elastic of demand would be


1162) If the price of 'x' rises by 10 % and the quantity demanded falls by 10%, 'x' has


1163) For goods with unites tic demand


1164) If the demand for the good is unit elastic, and E is the measure of Elasticity, which of the following to true?


1165) If the demand for the good is unit elastic, the demand Curve will be


1166) If the demand for the good is unit elastic, the demand Curve will be


1167) Rectangular Hyperbola is also called


1168) If the demand for the good is unit elastic Demand Curve will be


1169) If a product has unit elastic demand, and there is a change in its price, which of the following is correct?


1170) Indefinite the coefficient of price elastic of demand when the percentage increases in the quantity demanded of a product is more than the percentage fall in a its price.


1171) When quantity demanded changes by larger percentage than price, elastic is demand as


1172) Suppose the demand for meals at a medium restaurant is elastic. If the management restaurant is considered raising prices.


1173) For goods with more elastic demand


1174) If the demand for the e of good is more elastic, and E is the measure of Elastic, which of the following is true?


1175) If the demand for the good is more elastic, the Demand Curve will be


1176) If a product has been elastic demand, and there is a change in its price, which of the following is correct?


1177) What would be the value of Elastic of Demand, if the demand for the good is perfectly elastic?


1178) If the demand for the good is perfectly elastic, the Demand Curve will be


1179) Horizontal Demand Curve will show that the price elasticity of demand is


1180) For goods with perfectly elastic demand


1181) If the demand for the good is perfectly elastic, and E is the measure of Elastic, which of the following is true?


1182) Price Elasticity of Demand would be higher for those products which have


1183) Demand for a good will tend to be more elastic if it exhibits which of the following features?


1184) If the Elasticity of Demand for a commodity is perfectly inelastic, then which of the following is incorrect?


1185) Demand for a product will tend to be more inelastic if it exhibits which of the following characteristics?


1186) The Elasticity of Substitution between two perfect Substitutes is


1187) If the demand for a product reduces by 5% as result of an increase in the price by 25%. What is the price Elasticity of Demand


1188) If price of Coffee decreases from Rs. 5 to Rs. 4.50, and as a result the Consumer's Demand for Coffee increase from 60 grams to 75 grams, the absolute Price Elasticity of Demand of Coffee is


1189) If the demand for a product reduces by 2% as a result of an increase in the price by 10%. What is the Price Elasticity of Demand for the product?


1190) If the demand for Cricket Balls increases from 50 to 55 because of fall in price from Rs. 25 to Rs. 24, what is the Price Elasticity of Demand for Cricket Balls?


1191) What is the Price Elasticity of Demand for a product, if an increase in the price of the good by 2% leads to fall in demand by 3%?


1192) Price of Mangoes increases by 22% and the quantity of mangoes demanded falls by 25%. This indicates that demand for mangoes is


1193) Suppose the price of movies seen at a Theatre rises from Rs. 120 to Rs. 200 per person. The Theatre Manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons. What is the Price Elasticity of Demand for Movies?


1194) Suppose a department Store has a sale on its silverware. If the Price of a plat-setting is reduced from Rs. 300 to 200 and the quantity demanded increases from 3000 plate settings to 5,000 plate-settings, what is the Price Elasticity of Demand for that item?


1195) A Store has a special offer on CDs. It reduces the price from Rs. 150 to Rs. 100. The Store Manager observes that the quantity demanded increases from 700 CDs. to 1,400 CDs. What is the Price Elasticity of Demand for CDs.?


1196) If a shop raises the price of a product from Rs. 60 to Rs. 100 and quantity demanded falls from 400 units to 300 units, the Price Elasticity of Demand is


1197) A book seller estimates that if the price of a book is increased from Rs. 60 to Rs. 67, the quantity of books demanded will decrease from 2,035 to 1,946. The book's price elasticity of Demand is approximately


1198) What is the new quantity demanded when Price Elasticity is 1 and price changes from Rs. 15 to 10 and the original quantity demanded was 10 units?


1199) The Elasticity at a given point on a Demand Curve is known as


1200) Point Elasticity of Demand is calculated as


1201) Point Elasticity is useful for which of the following situations


1202) Which of the following statements regarding Elasticity of Demand is true?


1203) If a point on a Demand Curve of any Product lies on x Axis then Price Elasticity of Demand of that commodity at that point will be


1204) if a point on a Demand Curve of any Product lies on Y Axis, then Elasticity of Demand of that commodity at that point will be


1205) In the case of a Straight Line Demand Curve meeting the two axes, the Price-Elasticity of Demand at the mid - point of the line would be


1206) If a point bisects the Demand Curve in two equal parts, then elasticity at R equals


1207) Point Elasticity at the mid- point on the Straight Line Demand Curve is


1208) At a price of Rs. 300 per month, there are 30,000 subscribers to Cable TV in a Small Town. If the Cable Company raises its price to Rs. 400 per month, the number of subscribers will fall to 20,000 using the mid-point method for calculating the elasticity, what is the Price Elasticity of Demand for Cable TV?


1209) What is the Price Elasticity of Demand when, price changes from Rs.10 to Rs.12 and as a result, demand fails from 6 unit to 4 units?


1210) If the quantity of blankets demanded increases from 4,600 to 5,700 in response to a decrease in their price from Rs. 220 to Rs. 190, the Price Elasticity of Demand for blankets using Arc Method is


1211) What is the Original Price of a Product when Price Elasticity is (0.71) and Demand changes from 20 units to 15 units and the new price is Rs. 10? (use Arc Method for computation)


1212) Under total outlay Method, if as a result of the decrease in price of a product, the total expenditure on the product rises, we say that Price Elasticity of Demand is


1213) Under Total Outlay Method, if Price and Consumer's Total Expenditure on the product move in opposite directions, then, Price Elasticity of Demand is


1214) If the demand for a product is elastic, an increase in its price will cause the Total Expenditure of the Consumers to


1215) If the demand for a product is elastic, an decrease in its price will cause the Total Expenditure of the Consumers to


1216) Under Total Outlay Method if as a result of the decrease in price of a product decreases, we say that Price Elasticity of Demand is


1217) f the demand for a commodity is __________, entire burden of indirectly tax will fall on the consumer.


1218) Under Total Outlay Method, if Price and consumer's Total Expenditure on the product move in the same direction, then, Price Elasticity of Demand is


1219) If the demand for a product is inelastic, an increase in its price will cause the Total Expenditure of the Consumer to


1220) If the demand for a product is inelastic, an decrease in its price will cause the price will cause the Total Expenditure of the Consumers to


1221) Total Expenditure of a Consumer increases if:
i. Demand is elastic and price rises.
ii. Demand is elastic and price falls.
iii. Demand is inelastic and price rises.
iv. Demand is inelastic and price falls.


1222) Given the following four possibilities, which one results in an increase in Total Consumer Expenditure?


1223) Due to change in price of the commodity, the Total Expenditure remains the same as before, then Elasticity under Total Outlay Method is


1224) When Increase in price is exactly balanced by a proportionate reduction in the purchase quantity, then Elasticity under Total Outlay Method is


1225) An increase in price will result in an increase in Total Revenue if


1226) Which of the following statements regarding Elasticity of demand is true?


1227) A decrease in price will result in an increase in Total Revenue if


1228) If a good has price elasticity greater than one then


1229) Ceteris parties, what would be the impact on foreign exchange earnings for a given falling export prices, if the demand for the country's exports is inelastic?


1230) If the Railways are making losses on passenger traffic, they should lower their fares. The suggested remedy would only work if the demand for Rail Travel had a price elasticity of


1231) If Cinema Halls are making losses they should lower the ticket fares. This suggestion would only work if the demand for watching movies in cinema halls had a Price Elasticity of


1232) Price Elasticity of demand for a product is zero. If the Firm increases the price of the product by 10% Total Revenue of the Firm will


1233) Income Elasticity of demand is defined as the responsiveness of


1234) Income Elasticity of demand is given by


1235) Positive income Elasticity impels that as income rises, demand for the commodity


1236) If income Elasticity is greater than zero, then the product is


1237) ________ have a positive Income Elasticity of Demand.


1238) For what type of goods does demand fall with rise in income levels of households?


1239) Negative Income Elasticity impels that as income rises, demand it's the commodity


1240) What type of goods does a consumer eventually stop buying, when his income rises?


1241) Goods having negative Income Elasticity are known as


1242) In case of Interior Goods, income Elasticity is


1243) In demand supply Analysis, if the income of the Consumer increases the Demand Curve for an interior good


1244) _________ have a negative Income Elasticity of Demand.


1245) If quantity demanded does not change as Income changes then Income Elasticity of Demand is


1246) Goods having Zero Income Elasticity are


1247) If an increase in Consume Incomes leads it's a increase in the demand its Product Y, then Product X is


1248) For __________ goods increase in income leads to increase in demand.


1249) If Income Elasticity > 1, it means that proportion of Income spent on goods as income of the Consumers increases.


1250) For a product to be called income elastic its income Elasticity has to be


1251) Service like Air Travel and Movies have an income elasticity of


1252) What would be the value of Income Elasticity of demand for the meals in a costly restaurant?


1253) If a good is a Luxury, its Income Elasticity of demand is


1254) Goods having Income Elasticity > 1 are considered as


1255) The income of a Household rises by 20%, the demand for Computer rises by 25% this means Computer (in Economics) is a/an


1256) If Income Elasticity for the household for product A is 2 then A is


1257) If the Income Elasticity is greater then one, the commodity is


1258) If Income Elasticity = 1, it means that proportion of Income spent on goods as income of the Consumers increases


1259) If Consumers always spend 15% of their income on food, then the Income Elasticity of Demand for Food is


1260) If Income Elasticity < 1, it means that proportion of Income spent on goods as income of the Consumers increases.


1261) Which of the following is not an income-elastic product/service?


1262) A Necessity is defined as a good having


1263) Goods having Income Elasticity < 1 are considered as


1264) Which of the following is not a determinant of the Advertising Elasticity of Demand?


1265) Suppose a Consumer's income increases from Rs. 30,000 to Rs. 36,000. As a result, the consumer increases her purchases of compact discs (CDs) form 25 CDs to 30 CDs. What is the Income Elasticity of Demand for CDs here?


1266) If the quantity of CD demanded increases from 260 to 290 in response to an increase in income from Rs. 9,000 to Rs. 9,800, the Income Elasticity of Demand is approximately


1267) Consumed about the poor state of the economy, a Car Dealer estimates that if income decreases by 4% Car Sales will fall from 352 to 335. Consequently, the Income Elasticity of Demand for cars is approximately


1268) If an increase in Consumer Incomes leads to a decrease in the demand for Product X, then Product X is


1269) Income of a household increases by 10% and the demand for Wheat rises by 5%. This means that Wheat is an example of


1270) Income of a household increases by 10% and the demand for TV rises by 20%. This means that TV is an example of


1271) Income of a household increases by 5% and the demand for Bajra falls by 2%. In this case, Bajra is an example of


1272) In order to assess the effect of a change in price of one product on the demand for other products, which type of elasticity, is often used?


1273) Cross Elasticity measures the responsiveness of quantity demanded of a commodity to


1274) In measuring Cross Elasticity, _________ is / are considered.


1275) Which of the following statements regarding Cross Elasticity is true?


1276) If Goods X and Y are complementary, their Cross Elasticity is


1277) Complementary Goods like tea and sugar have a ____________ Cross Elasticity.


1278) What will be the Stope of Demand Curve when it shows the Cross Elasticity between two Complementary Goods?


1279) Cross Elasticity between Tea and Sugar is


1280) Goods having negative Cross Elasticity are


1281) Negative Cross Elasticity always implies that the goods are complementary in nature. This statement is


1282) Goods having zero Cross Elasticity are


1283) Cross Elastcity of Demand between Tea and Coffee is


1284) If the Co-efficient of Cross Elasticity of Demand of X for Y is 3, it means that X and Y are


1285) When Cola Companies Coke and Pepsi, introduced Colas in mini bottles at a low prices, the demand for Tea and Coffee is small tea stalls declined drastically. The Cross Elasticity between the Colas and Tea / Coffee is


1286) If two products are good substitute, the value of Cross Elasticity will be


1287) Goods having positive Cross Elasticity are


1288) Positive Cross Elasticity always implles that the goods are substitute goods. This statement is


1289) If Cross Elasticity of Demand is Infinity, it means that the goods are


1290) If Cross Elasticity of Demand = zero, it means that the goods are


1291) If Cross Elasticity of Demand between A and B is zero, it means that between A and B


1292) If the quantity demanded of Tea increases by 5% when the price of Coffee increases by 20% the Cross Elasticity of demand between Tea and Coffee is


1293) The Cross Elasticity of monthly demand for ink pen, when the price of gel pen increases by 25% and demand for ink pen increases by 50% is equal to


1294) Cross Elasticity of demand for gel pen when the price of refills increases by 20% and demand for gel pens falls by 30% is equal to


1295) If the quantity demanded of product x increases from 8 to 12 units in response to an increase in the price of product Y from Rs. 23 to Rs. 27, the cross elasticity of demand for X with respect to price of Y is approximately


1296) Which of the following is incorrect?


1297) The price elasticity of demand when fresh milk’s price increases from Rs. 20 per liter to Rs. 30 per liter is equal to


1298) What can be said about the price elasticity of demand for fresh milk?


1299) The cross elasticity of demand for cereals when the price of fresh milk increases from Rs. 20 to Rs. 30 is equal to


1300) What can be said about fresh milk & cereals?


1301) The cross elasticity of demand for powdered milk when the price of fresh milk increases from Rs. 20 to Rs. 30 per liter is equal to


1302) What can be said about fresh milk and powdered milk?


1303) If income of the consumers increases by 50% and the quantity of fresh milk demanded increases by 30%. What is income elasticity of demand for fresh milk?


1304) We can say that fresh milk in economics sense is an example of


1305) Price elasticity of demand when gel pen’s price increases from Rs. 10 to 15 per pen is


1306) What can be said about the price elasticity of demand for gel pens?


1307) The cross elasticity of demand for refills when the price of gel pen increases from Rs. 10 to Rs. 15 is


1308) What can be said about gel pen and refills?


1309) Cross elasticity of demand for Ink Pen when the price of Gel pen increases from Rs. 10 to Rs. 15 is equal to


1310) What can be said about Gel pen and Ink pens?


1311) If income of the residents of locally increases by 50% and the quantity of Gel pens demanded increases by 20%. What is income elasticity of demand for Gel pen?


1312) We can say that Gel pen in economics sense is an example of


1313) ______ is defined as the responsiveness of the quantity demanded of a good to changes in one of the variables on which demand depends or we can say that it is the percentage change in quantity demanded divided by the percentage in one of the variables on which demand depends.


1314) ___________ of demand is the degree of responsiveness of the demand for a commodity to a change in its price.


1315) Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?


1316) The formula for calculating price elasticity is


1317) Identify the factor which generally keeps the price-elasticity of demand for a good low


1318) Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?


1319) When a very insignificant change in price leads to an infinite change in quantity demanded, it is called as


1320) Quantity demanded does not change with change in price at all, it is called as


1321) When a small change in price causes a greater change in quantity demanded, it is called as


1322) Where a greater change in price leads to smaller change in quantity demanded, it is called as


1323) When a change in price results in exactly the same percentage change in the quantity demanded of a commodity, it is called as


1324) If electricity demand is inelastic, and electric rates increase, which of the following is likely to occur?


1325) Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively


1326) Perfectly elastic demand means _________


1327) Perfectly inelastic demand means ________


1328) Relatively elastic demand means __________


1329) Relatively inelastic demand means ________


1330) Unitary elastic demand means _________


1331) In the case of a straight line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be ___________.


1332) Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price ___________.


1333) Price elasticity of demand can be measured through ____________


1334) According to percentage method or arithmetic method of elasticity of demand, If the percentage change in quantity demanded is greater that the percentage change in price, the elasticity will be


1335) According to percentage method or arithmetic method of elasticity of demand, If percentage change in quantity demanded is less than percentage change in price, the elasticity is said to be


1336) According to percentage method or arithmetic method of elasticity of demand, If percentage change of both quantity demanded and price is same, elasticity of demand is said to be


1337) Total expenditure method of elasticity of demand was formulated by


1338) According to total expenditure method of elasticity of demand, if it is found that total expenditure remains the same, elasticity of demand is said to be


1339) According to total expenditure method of elasticity of demand, if the total expenditure increases due to increase in price the elasticity of demand is said to be


1340) According to total expenditure method of elasticity of demand, If the total expenditure diminished with the decrease in price, the elasticity of demand is said to be


1341) Given the following four possibilities, which one results in an increase in total consumer expenditures?


1342) According _____, elasticity of demand is measured on different points on a straight line demand curve.


1343) According to graphic or point method of elasticity of demand, at mid point on a straight-line demand curve, elasticity will be equal to


1344) According to graphic or point method of elasticity of demand, at higher points on a straight-line demand curve, but to the left of the mid-point, elasticity will be


1345) According to graphic or point method of elasticity of demand, at lower points on a straight-line demand curve, but to the right of the mid point, elasticity will be


1346) According to graphic or point method of elasticity of demand, the price elasticity of demand at a point on a straight line is equal to _____ of the demand curve.


1347) A vertical supply curve parallel to Y axis implies that the elasticity of supply is ___________.


1348) Elasticity of supply is greater than one when ____________.


1349) Price elasticity of demand is dependent upon ____________.


1350) Price elasticity of demand is dependent upon ____________.
(I) Availability of substitutes.
(II) Share in total expenditure of household's income.
(III) Possibility of postponing the consumption.
Select the correct answer from the options given below:


1351) The demand is _____ for moderate priced goods.


1352) If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to __________.


1353) The demand for very costly and very cheap goods is


1354) If a good has close substitutes, the price elasticity of demand for a commodity will be _____ as some other commodities can be used for it.


1355) Which of the following has inelastic demand?


1356) Elasticity of demand for a good is not dependent upon the proportion of a consumer's budget spent on it.


1357) If individuals are habituated of some commodities the demand for such commodities will be usually


1358) The demand for necessities is ________.


1359) The demand for comforts and luxuries is __________.


1360) A commodity which has several uses will have an _____ demand such as milk, wood etc.


1361) A commodity having only one use will have _____ demand.


1362) Usually the demand for commodities, the consumption of which can be postponed has _____ demand as the prices rise and is expected to fall again.


1363) The price of hot dogs increases by 22% and the quantity of hot dogs demanded falls by 25 %. This indicates that demand for hot dogs is ___________.


1364) The price elasticity of demand for hamburger is ____________.


1365) The change in the demand of a Good X in response to a change in the price of Good Y is called


1366) Cross price elasticity is _________ if the slightest change in the price of Good Y causes a substantial change in the quantity demanded of Good X.


1367) Cross price elasticity is _____ if the change in the price of Good Y causes a change in the quantity demanded of good X in same direction.


1368) Cross price elasticity is _____ if the change in the price of Good Y causes a change in the quantity demanded of Good X in opposite direction.


1369) Cross price elasticity is _____, if a change in the price of Good Y does not affect the quantity demanded Good X.


1370) In case of _____, cross elasticity is infinite.


1371) In case of _____, cross elasticity is positive.


1372) In case of _____, cross elasticity is negative.


1373) A positive cross elasticity of demand coefficient indicates that _________.


1374) If the price of Pepsi decreases relative to the price of Coke and 7-UP, the demand for _____________.


1375) _____ is the degree of responsiveness of quantity demanded of goods to a change in the income of consumers.


1376) The formula for calculating income elasticity is _____________.


1377) __________ have a positive income elasticity of demand so as consumers' income rises, demand also increases.


1378) __________ have a negative income elasticity of demand as demand falls when income rises.


1379) __________ have an income elasticity of demand, Ed > 1


1380) In the case of an inferior good, the income elasticity of demand is ___________.


1381) The quantity purchased will remain constant irrespective of the change in income. This is known as ___________.


1382) As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall. This means ______________.


1383) When income increases the money spent on necessaries of life may not increase in the same proportion, This means ____________.


1384) The luxury goods like jewellery and fancy articles will have ______________.


1385) The formula for calculating price elasticity of supply is:


1386) The supply is said to be_____, when a very insignificant change in price leads to an infinite change in quantity supplied.


1387) The supply is said to be _____, when a change in price produces no change in the quantity supplied of a commodity.


1388) The supply is _____, when a small change in price causes a greater change in quantity supplied.


1389) The supply is _____, when a greater change in price leads to smaller change in quantity supplied.


1390) Perfectly elastic supply means _________.


1391) Perfectly inelastic supply means _________.


1392) Relatively elastic supply means __________.


1393) Relatively in inelastic supply means _________.


1394) Unitary elastic supply means __________.


1395) If the price of a video rental is below the equilibrium price, the quantity supplied is __________ than the quantity demanded. If the price of video rentals is above the equilibrium price, the quantity supplied is __________ than the quantity demanded.


1396) Which of the following approach can be used for determining consumer behaviour?


1397) Who gave a significant contribution in the study of consumer behaviour?


1398) Which of the following assumption is applicable under the Marshallian approach of consumer behaviour?


1399) Which of the following assumption is applicable under the Marshallian approach of consumer behaviour?


1400) _____ is a curve which represents all those combinations of goods which give same level of satisfaction to the consumer.


1401) An indifference curve which was introduced by _____


1402) An indifference curve is a curve which represents all those combinations of goods which give _____ level of satisfaction to the consumer.


1403) On which of the following assumption an indifference approach is based?


1404) An Indifference curve _____


1405) Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its.


1406) Which of the following has the lowest price elasticity?


1407) In which of the following type of product, is the elasticity of supply lowest?


1408) Given the market demand, the burden of specific, tax that will be Bome by the consumer (buyer) depends


1409) Elasticity of supply is given by the formula


1410) Elasticity of supply can be measured using


1411) Which of the following method is not used for measuring elasticity of supply?


1412) If quantity supplied increases by 60% for a 50% increase in Price, elasticity of supply


1413) If price is Rs. 15, quantity supplied is 150 units. If price is Rs. 25 quantity supplied is 300 units. Compute price elasticity of supply using arc method.


1414) If as a result of a change in price, the quantity supplied of a product remains unchanged we conclude that


1415) A vertical supply curve parceled to Y axis impels that the elasticity of supply is


1416) If the elasticity of supply is zero, then supply curve will be


1417) When the supply is perfectly elastic, elasticity of the sloping is equal to


1418) If the elasticity of supply is infinity, then supply curve will be


1419) When change in supplied is propotional to the change in the price, the product is said to have


1420) If the elastic of supply is infinity, then supply curve will be


1421) If q = change in quantity supplied, p = change in price, when supply is perfectly inelastic, it means


1422) If q = change in quantity supplied, p = change in price, when supply is perfectly elastic, it means


1423) If q = change in quantity supplied, p = change in price, when supply is relatively elastic, it means


1424) If q = change in quantity supplied, p = change in price, when supply is relatively inelastic, it means


1425) If q = change in quantity supplied, p = change in price, when supply is relatively elastic, it means


1426) Market forces refers to


1427) Which of these refers to market force?


1428) Demand & supply interacts in determining


1429) Generally, the demand curve


1430) Generally, the demand curve


1431) Generally, the supply curve


1432) Generally, the supply curve


1433) Other things being equal, as Demand increase, Equilibrium price


1434) Other things being equal, as demand increases, quantity at the equilibrium price level


1435) Other things being equal, as demand increases


1436) Other things being equal, as demand decreases, equilibrium price


1437) Other things being equal, as demand decreases, quantity at the equilibrium price level


1438) Other things being equal, as demand decreases


1439) With a given supply curve, a decrease in demand causes


1440) Other things being equal, as supply increases, equilibrium price


1441) Other things being equal, as supply increases quantity at the equilibrium price level


1442) Other things being equal, as supply increases


1443) Other things being equal, as supply decreases equilibrium price


1444) Other things being equal, as supply decrease quantity at the equilibrium price level


1445) Other things being equal, as supply decreases equilibrium price and quantity both increase


1446) If increase in demand is greater than the increase supply, then the equilibrium price


1447) If increase in demand is greater than the increase in supply, then quantity at the equilibrium price level


1448) If increase in demand is greater than the increase in supply, then


1449) If decrease in demand is greater than the decrease in supply, then the equilibrium price


1450) If decreases in demand is greater than decrease in supply, then the quantity at the equilibrium price level


1451) If decrease in demand is greater than the decrease in supply, then


1452) If increase in demand is equal to the increase in supply, then the equilibrium price


1453) If increase in demand is equal to the increase in supply, then the quantity at the equilibrium price level


1454) If increase in demand is equal to the increase in supply, then


1455) If decrease in demand is equal to the decrease in supply, then the equilibrium price


1456) If decrease in demand is equal to the decrease in supply, then the quantity at the equilibrium price level


1457) If decrease in demand is equal to the decrease in supply, then


1458) If increase in demand is less than the increase in supply, then the equilibrium price


1459) If increase in demand is less than the increase in supply, then the quantity at the equilibrium price level


1460) If increase in demand is less than the increase in supply, then


1461) If decrease in demand is less than the decrease in demand is less than the decrease in supply, then the equilibrium price


1462) If decrease in demand is less than the decrease in supply, then the quantity at the equilibrium price level


1463) If decrease in demand is less than the decrease in supply, then


1464) Which of the following situation does not lead to an increase in equilibrium price?


1465) If the supply of a commodity is perfectly elastic, an increase in demand will result in


1466) If the supply of commodity is perfectly elastic, a decrease in demand will result in


1467) If the supply of commodity is perfectly inelastic, an increase in demand will result in


1468) If the supply of a commodity is perfectly inelastic, a decrease in demand will result in


1469) If the demand of a commodity is perfectly elastic, an increase in supply will result in


1470) If the demand of a commodity is perfectly elastic, a decrease in supply will result in


1471) If the demand of a commodity is perfectly inelastic, an increase in supply will result in


1472) In Economics, a place where Buyers and Sellers meet and bargain over a commodity for a price is called


1473) Which of the following statements best describe a "Market"?


1474) Which of these is not a feature of Market?


1475) Which of these is a feature of Market?


1476) Which of the following is an element of Market Structure?


1477) Which of these is not a Market Structure in Economics?


1478) Which of these is a Market Structure in Economics?


1479) Which of the following types of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?


1480) Free Entry/Exit is a characteristic feature of


1481) Free Entry/Exit is not a characteristic feature of


1482) Free Entry/Exit is possible in


1483) The market for Food grains, Cereals, Vegetables, etc. closely resembles


1484) Railways is an example of


1485) Air Travel Service Industry is an example of


1486) Electricity Supply Service is an example of


1487) Bottled Cool Drinks Industry is an example of


1488) Agricultural Goods markets depict characteristics close to


1489) Which of the following is an Oligopoly?


1490) Toothpaste Manufacturing Industry is an example of


1491) Automobile (Cars) Manufacturing Industry is an example of


1492) Toilet Soap Industry is an example of


1493) Mobile Service Providers is an example of


1494) The structure of the Cold Drink Industry in India is best described as


1495) The conditions of Firm Equilibrium, i.e. MC = MR, and MC cuts MR from below, is applicable for


1496) In which of the following market conditions, does a Firm maximizes its profit when its Marginal Revenue is equal to Marginal Cost?


1497) What is the other name given for Average Revenue Curve?


1498) Which of the following is not a characteristic feature common to both Monopolistic Competition and Perfect Competition?


1499) As in Perfect Competition, the Firms operating in a monopolistically competitive industry can realize only Normal Profits in the long run because


1500) The relationship Firm= Industry is applicable for


1501) In which of the following market structures is the demand curve of the market us represented by the demand curve of the Firm?


1502) The AR Curve and Industry Demand Curve are same in the case of


1503) Why is the Demand Curve of the Market in Monopoly is represented by the Demand Curve of the Firm?


1504) The relationship Industry = Large Number of Firms, is applicable for


1505) The relationship Industry = Large Number of Firms, is applicable for


1506) Which among the following market structures has the highest product differentiation?


1507) Which among the following market structures has the highest price elasticity?


1508) Which of the following market forms will never suffer losses in the short run?


1509) Under which of the following market structures is the price lower and output larger?


1510) In which form of the market structure is the degree of control over the price of its product by a Firm very large


1511) Under which of the following forms of market structure does a Firm has no control over the price of its product


1512) A market structure in which many Firms sell products that are similar but not identical is known as


1513) Which of the following types of market structure is the exact opposite of Perfect Competition?


1514) Which of the following statements about Price and Marginal Cost (MC) in competitive and monopolized markets is true?


1515) In which of the following types of market structures can a Firm earn abnormal profits in the long run?


1516) In which of the following types of market structure, do Firms produce homogenous products?


1517) Which of the following statements is incorrect?


1518) Which of the following statements is not true with respect to the long run?


1519) P = MR = MC = AC = is the condition of


1520) Which of the following features is not seen in Imperfect Competition?


1521) Market __________ has a greater role in determination of a market price.


1522) Which of the following is not an essential condition of pure competition?


1523) Profits of the firm will be more at:


1524) What should firm do when Marginal revenue is gender than marginal cost?


1525) Under monopoly price discrimination depends upon:


1526) Firms in a monopolistic market are price ________.


1527) Market which have two firms are known as:


1528) Monopolist can determine


1529) MR of n th unit is given by:


1530) The market structure in which the number of sellers is small and there is inter dependence in decision making by the firms is known as:


1531) In perfect competition firm is a price taker, the _______ curve is a straight line.


1532) For maximum profit, the condition is:


1533) Equilibrium price may be determined through:


1534) If price is forced to stay below equilibrium price:


1535) An increase in supply with unchanged lead to


1536) In the long run:


1537) Condition for producer equilibrium is:


1538) An increase in supply with demand remaining the same, brings about.


1539) A competitive firm in the short run incure losses. The firm continues production, if:


1540) Under ____ market condition, firm make normal profits in the long run:


1541) A monopolist is able to maximize his profits when:


1542) Under monopolistic competition the cross elasticity of demand for the product of a single firm would be:


1543) When AR = Rs. 10 and AC = Rs. 8 the firm makes ___________:


1544) What are the conditions for the long run equilibrium of the competitive firm?


1545) Kinked demand curve hypothesis is given by:


1546) Supernormal profits occur, when:


1547) If the perfect competition, the price line lies below the average cost curve, the firm would:


1548) The MR curve cuts the horizontal line between Y axis and demand curve into


1549) Competitive firm in the long run earn:


1550) For a monopolist, the necessary condition for equilibrium is:


1551) A firm will shut down in the short run if:


1552) ________ is the price at which demand for a commodity is equal to its supply:


1553) ______ is a ideal Market.


1554) Under which Market situation demand curve is linear and parallel to X axis:


1555) Which market have characteristic of product differentiation?


1556) Which of these are characteristic of perfect Competition.


1557) MR Curve = AR = Demand Curve is a feature of which kind of Market?


1558) In the long-run monopolist can


1559) The demand curve of the firm and industry will be same in which form of market:


1560) Oligopoly haring identical products is:


1561) The demand curve of oligopoly is:


1562) Demand curve is equal to M.R curve in which market?


1563) Kinked demand hypothesis is designed to explain ________ in context to oligoploly.


1564) Price discrimination can take place only in _______.


1565) In oligopoly, the kind on the demand curve is more due to _________.


1566) Price Discrimination is possible only when.


1567) Which of the following is not the feature of an imperfect competition?


1568) Price taker firm a _____________ .


1569) Price rigidity is a situation found in which of the following market forms?


1570) When elasticity of demand is Equal to one in monopoly, marginal Revenue will be ________.


1571) Which one of the following statement is incorrect?


1572) Under which of the following market structure AR of the firm will be equal to MR?


1573) Tooth paste industry is an example of __________.


1574) OPEC is an example of :


1575) Monopolistic Competitive firms ________.


1576) The price discrimination under monopoly will be possible under which of the following conditions?


1577) Oligopoly having identical products is known as __________.


1578) Which of these is the best example of oligopoly?


1579) Monopolist can fix price of goods whose elasticity is _________.


1580) Kinked demand curve is observed in _________.


1581) Perfectly competitive firm faces:


1582) In perfect competition when the firm is a price taker, which curve among the following will be a straight line?


1583) "Price Discrimination" can be best exercise by the Seller in _________.


1584) In Oligopoly the kink in the demand curve is more due to _________.


1585) A firm Encounters "shut down" point when _____________.


1586) Under which market Condition firms make only normal profit in the long run?


1587) In Monopolistic competitive excess capacity in the firm ____________.


1588) Number of firms in a perfect competition:


1589) In which of the following market characteristics of product differentiation is observed?


1590) Which of the following curve represent monopolistic competition?


1591) If the long-run average cost curve is a downward sloping curve for a firm, it implies that the unit is subject to the law of __________ always.


1592) A firm would be in equilibrium at the level of output where its


1593) Which of the following commodities best represents a monopolistic competitive market?


1594) In which of the following market structures, a firm is not a price maker


1595) In which of the following market structures, a firm in long-run equilibrium earns abnormal profit


1596) For a firm in short-run equilibrium its AR < AC, i.e. it is incurring losses, it will


1597) A firm has to take decision about the nature and extent of product differentiation and hence the level of selling expenses in __________ market structure.


1598) Under monopolistic competition, loss making firms leave the group


1599) For a monopoly state of market, which one of the following is not true?


1600) As per Theory of Revenue, if price is denoted by (P) and quantity is denoted by (Q), then the total revenue (TR) will be:


1601) A firm encounters its shut down point when:


1602) If at least one factor is constant according to Diminishing return theory of production, at which stage total output starts diminishing.


1603) Which of the following is not an example of Product differentiation?


1604) The general term for market structures that fall somewhere in-between monopoly and perfect competition is:


1605) Which of the following type of commodities, normally, do not operate in an oligopoly market structure?


1606) Market for mobile phone-sets in India demonstrates the characteristics of a


1607) Given below is the short-run cost-sheet of a perfectly competitive firm, at equilibrium level of output: Average variable cost = Rs. 9 per unit. Average fixed cost = Rs. 2 per unit. The firm would be well advised to continue to produce if the per unit market price of the commodity is


1608) An Oligopoly is a market in which:


1609) Which of the following is the difference between perfect competition and monopolistic competition?


1610) A perfectly competitive firms short run shutdown point is the level of output at which:


1611) In a free market, which of the following will be caused by excess supply for a commodity?


1612) Which of the following is a characteristic of Monopoly?


1613) The perfectly competitive firm can sell its output at __________ prices.


1614) Supply of a product in __________ is relatively inelastic.


1615) Many sellers offering differentiated products to many buyers is characterized as:


1616) __________ refers to the selling of specific commodity or service to different buyer at two or more different prices.


1617) In perfect competition since firm is the price taker which curve is straight line?


1618) The actual factor which determines the size of the market in any country is:


1619) At every level of output AR = MR in case of


1620) The market that induces formation of cartels is ___________.


1621) Price discrimination involves charging different prices for a commodity


1622) Market __________ has a greater role in determination of a market price.


1623) Market supply is perfectly


1624) Competitive market is a market situation characterized by a large number of sellers and differentiated products.


1625) In The short run if a firm fails to recover its average __________ cost it will shut own.


1626) In the long run, the monopolist


1627) Product differentiation in Monopolistic competition is


1628) In India which of the following best describes a perfectly competition market?


1629) Which industry best fits the description of a perfectly competition market?


1630) Under pure competition, there are ________ Sellers.


1631) Under perfect competition, the product is


1632) The assumption of large number of sellers and product homogeneity in perfect competition, implies that all individual firms in Perfect competition are


1633) In Perfect Competition Market


1634) How are prices determined under Perfect Competition?


1635) Under Perfect Competition, each Firm's control over price is


1636) Under perfect competition, a Firm can earn ___________ in the long run.


1637) Under Monopoly, there is/are ____________ seller(s).


1638) Under Monopoly, The product is


1639) In Monopoly, entry of new firm


1640) Under Monopoly, each Firm is a ___________.


1641) A Monopoly will not be a perfect monopoly, if cross elasticity of demand of the related goods is


1642) By Imperfect monopoly, we mean


1643) Under Monopoly, each Firm's control over price is:


1644) Under Monopoly, the Firm's Demand curve is:


1645) In Monopoly, the relationship between Average and Marginal Revenue Curve is as follows:


1646) Under Monopoly, a Firm can earn __________ in the long-run.


1647) Under Monopolistic Competition, there are __________ Sellers.


1648) Under Monopolistic Competition, the product is


1649) Under Monopolistic Competition, each firm is a


1650) Under Monopolistic Competition, each firm's control over price is


1651) Under Monopolistic Competition, Price Elasticity of Demand is


1652) A fall in demand for the product under monopolistic competition will most likely result in


1653) In imperfect competition


1654) "Excess Capacity" is the essential characteristic of the firm in the market form of:


1655) The LAC curve


1656) Under Monopolistic Competition, in the long run, resource


1657) Under oligopoly, there are __________ sellers.


1658) Which one of the following is the best example of agreement between oligopolistic?


1659) One characteristic not typical of oligopolistic Industry is


1660) Under oligopoly, each Firm's control over price is


1661) Under oligopoly, Price Elasticity of Demand is


1662) Under Oligopoly, the firm's demand curve is


1663) Oligopoly, is the market form in which there are


1664) Which of the following most closely approximates the definition of an Oligopoly?


1665) Pure oligopoly is one where


1666) Oligopolistic Industries are characterized by


1667) Under Monopolistic Competition, the Firms Demand Curve is


1668) Product Differentiation in a Monopolistic Competition could lead to


1669) Under Monopolistic Competition, a Firm can earn ____ in the long-run.


1670) Under Monopolistic Competition, in the long-run, a Firm


1671) Under Monopolistic Competition, in the long-run, a Firm


1672) Which of these does not apply to Monopolistic Competition?


1673) Which of these does not apply to Monopolistic Competition?


1674) Which of the following is not a feature of Monopolistic Competition?


1675) Which of the following is not a characteristic feature of Monopolistic Competition?


1676) Which of the following is not a characteristic of Monopolistic Competition?


1677) Which of these applies to Monopolistic Competition?


1678) Under Monopolistic Competition, each Seller tries to develop Brand Loyalty for his product. This statement is


1679) The sale of branded articles is common in a situation of


1680) A Firm under Monopolistic Competition advertises


1681) Through more advertising a monopolistically competitive Firm has successfully created more demand for its product. It would have resulted in shifting of


1682) Under Monopolistic Competition, Price Discrimination is not possible at all. This statement is


1683) Which of these does not apply to Monopolistic Competition?


1684) Under Monopolistic Competition, in the short - run, the Firm can never make Losses. This statement is


1685) Under Monopolistic Competition, the Firm can earn _________ in the short-run.


1686) In short run, a Firm in Monopolistic Competition


1687) In long-run, all Firms in Monopolistic Competition


1688) In the short run equilibrium of a Firm in Monopolistic Competition, which Curve is U shaped?


1689) Under Monopolistic Competition, in the short - run, the condition AR = MR = MC = AC, means that the Firm is earning


1690) Under Monopolistic Competition, in the short-run, if AR > AC at the point when MC = MR, it means that the Firm


1691) Under Monopolistic Competition, in the Short-run, if AR < AC at the point when MC = MR, it means that the firm


1692) Under Monopolistic Competition, in the short-run, the firm will never shut-down. This statement is


1693) Under Monopolistic Competition, in the short-run, the condition for shut-down is


1694) In Monopolistic Competition, the long-run equilibrium price will be equal to


1695) Under Monopolistic Competition, in the long-run, if MC = MR and LAC = LAR, then the industry is said to be


1696) In the long-run, Indstry Equilibrium is achieved if MC = MR and LAC = LAR. This condition is applicable for


1697) In the long-run, Industry Equilibrium is achieved in Monopolistic Competition only if LAC = LMC. This statement is


1698) In the long-run, Industry Equilibrium is achieved in Monopolistic Competition only at the lowest point of LAC Curve. This statement is


1699) In Monopolistic Competition, a Firm is in long run equilibrium


1700) Under Monopolistic Competition, in the long-run, Output is produced at


1701) Under Monopolistic Competition, in the long-run resources


1702) Monopolistic Competition differs from Perfect Competition primarily because


1703) The long-run equilibrium outcomes in Monopolistic competition and Perfect Competition are similar, because in both market structures


1704) Product differentiation is the feature of __________.


1705) Under __________ there will be no difference between firm and industry.


1706) Monopolist is a __________.


1707) In the long run, monopolist firm earn __________.


1708) In long run, a monopolist can make profit because of:


1709) The term differentiated product denotes __________ product used by __________ set of people.


1710) In monopolistic competitive market, seller try to compete on the basis of:
(i) Price
(ii) Aggressive Advertising
(iii) Efficient after sale service
(iv) Product development


1711) If firms in the Toothpaste Industry have the following market shares, which market structure would beIn Monopoly, entry of new firms


1712) Under Oligopoly, the product is


1713) In which of the following, a kinked Demand Curve can be seen in a frim?


1714) Which of these does not apply to Oligopoly?


1715) Which of these applies to Oligopoly?


1716) Duopoly is a specific from where are


1717) The American Economist sweezy developed the


1718) When an Oligopolistic Firm Changes its price, its rival Firms


1719) A Price War in an Oligopoly refers to


1720) A Firm under _________ cannot have sure and definite Demand Curve


1721) Price Leadership is form of


1722) Under Oligopoly, if one firm reduces its prices, the other firms will generally


1723) As per Kinked Demand Curve Theory of Oligopoly, the Kink is formed at


1724) As per Kinked Demand Curve Theory of Oligopoly, the demand above the Kink is


1725) As per Kinked Demand Curve Theory of Oligopoly, the demand below the Kink is


1726) What does the Kinked Demand Curve explain?


1727) A Firm having a Kinked Demand Curve indicated that


1728) The Kinked Demand Hypothesis is designed to explain in the context of Oligopoly


1729) The Kinked Demand Curve model assumes that price elasticity of demand-


1730) The kinked Demand Curve model of Oligopoly assumes that


1731) In both the Chamberlin and Kinked Demand Curve models, the Oligopolists


1732) In Oligopoly, why it difficult to determine the equilibrium price and Output?


1733) If the Demand Curve confronting an individual firm is perfectly elastic then


1734) What is the shape of the demand curve faced by a firm under perfect competition?


1735) Which of the following is not a condition of perfect competition?


1736) Which is the other name that is given to the average revenue curve?


1737) In perfect competition in the long run there will be no_________.


1738) When the perfectly competitive firm and industry are in long run equilibrium then:


1739) Product differentiation is the feature of _____________.


1740) ________ defines market as, "not any particular market place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such free intercourse with each other that the prices of the same goods tend to equality easily and quickly".


1741) According to __________," Market means the general field within which, the force determining the price of particular product operate".


1742) _________ explain the term market as "any organization whereby buyers and sellers of a good are kept in close touch with each other".


1743) Which of the following is/are basic components of market


1744) __________ refers to a market structure in which a large number of firms produce identical goods and sell them at a uniform price, where firms have the freedom of entry and exit and all the buyers and sellers have full knowledge of the market conditions.


1745) Which of the following is feature of 'Perfect Competition'?


1746) Which of the following is not a characteristic of a perfectly competitive market?


1747) Which of the following is not a characteristic of a "price taker"?


1748) Which of the following is feature of 'Perfect Competition'?


1749) Which of the following is feature of 'Perfect Competition'?


1750) Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?


1751) Which of the following is feature of 'Perfect Competition'?


1752) Which of the following is not feature of 'Perfect Competition'?


1753) Under which of the following forms of market structure does a firm have no control over the price of its product?


1754) In a perfect competition, product supplied by one firm is a perfect substitute of that supplied by another


1755) In a perfect competition, every firm in the industry is thus, a price maker.


1756) In a perfect competition, the demand for product of the firm is


1757) In a perfect competition, single buyer or seller may have influence on the price.


1758) In a perfect competition, every buyer and seller may not have knowledge of the market.


1759) A purely competitive firm's supply schedule in the short run is determined by


1760) In a perfect competition, seller has to incur selling expenses because his product has to be differentiated from the products supplied by other sellers.


1761) Since a perfectly competitive firm is a price taker, it is faced with a straight line demand curve i.e. AR is -


1762) Which is the first order condition for the profit of a firm to be maximum?


1763) In a perfect competition, the firm will be in equilibrium when


1764) The short run average cost curve (SAC) is


1765) In a perfect competition, the firms have


1766) On account of the law of _____, the average variable cost curve is U-shaped.


1767) In a perfect competition, no firm is able to earn an abnormal profit.


1768) These short run cost curves (SACs) are also called as


1769) In a perfect competition in long run firm gets equilibrium if it is operating under _____


1770) For the price-taking firm


1771) In perfect competition in the long run there will be no


1772) If under perfect completion, the price line lies below the average cost curve, the firm would __________.


1773) In a perfect competition which curve among following will be a straight line?


1774) Price-taking firms, i.e., firms that operate in a perfectly competitive market, are said to be "small" relative to the market. Which of the following best describes this smallness?


1775) The firm in a perfectly competitive market is a price taker. This designation as a price taker is based on the assumption that


1776) Suppose that the demand curve for the XYZ Co. slopes downward and to the right. We can conclude that


1777) Which one of the following does NOT occur in perfect competition?


1778) In perfect competition, a firm's marginal revenue equals its


1779) A perfectly competitive firm's demand curve is


1780) In perfect competition, the marginal revenue of an individual firm


1781) In the case of a perfectly competitive firm, the _____.


1782) In perfect competition, the firm's marginal revenue curve


1783) The above figure illustrates a firm's total revenue and total cost curves. Which one of the following statements is FALSE?


1784) For a firm in perfect competition, a diagram shows quantity on the horizontal axis and both the firm's Marginal Cost (MC) and its Marginal Revenue (MR) on the vertical axis. The firm's profit-maximizing quantity occurs at the point where the


1785) The term monopoly means a


1786) A monopoly firm faces a __________ for his product.


1787) Which of the following is feature of 'Monopoly Firm'?


1788) Which of the following is not a feature of 'Monopoly Firm'?


1789) Which of the following is not a feature of 'Monopoly Firm'?


1790) All of the following are characteristics of a monopoly except ________.


1791) In a monopoly, the monopolist can


1792) According to "total revenue & total cost" approach, a monopoly firm attains equilibrium when the difference between its total revenue and total cost is the ________.


1793) According to "Marginal revenue marginal cost approach" approach, a monopoly firm attains equilibrium when


1794) During short run monopolist may


1795) The art of selling the same commodity produced under a single control to different buyers at different prices is called


1796) Essential condition(s) for price discrimination is/are


1797) Essential condition(s) for price discrimination is/are


1798) __________ is the basic objective before a discriminating monopolist.


1799) Under price discrimination, the seller charges _____ in market having the less elastic demand.


1800) Under price discrimination, the seller charges ___________ in a market having elastic demand.


1801) A non discriminating monopolist will find that marginal revenue ___________.


1802) A monopolist is able to maximise his profits when


1803) Discriminating monopoly implies that the monopolist charges different prices for his commodity


1804) Price discrimination will be profitable only if the elasticity of demand in different market in which the total market has been divided is


1805) A monopolistic competition is defined as that market structure in which each seller produces a _____________.


1806) The concept of product differentiation means that ______________.


1807) Which of the following method is adopted for product differentiation?


1808) Which of the following is/are feature of monopolistic competition?


1809) Which of the following is/ are feature of monopolistic competition?


1810) Which of the following is not feature of monopolistic competition?


1811) In short run a firm operating under monopolistic competition may


1812) In monopolistic competition, firms earn only _____ in the long run.


1813) A monopolist will maximize profit


1814) Which of the following is not a characteristic of a monopolistically competitive market?


1815) Free entry and exit condition exist in


1816) Single firm in industry is feature of


1817) Large number of buyer exists in


1818) Uniform price is a feature of


1819) Firm in industry is 'price taker'. This is feature of


1820) Firm in industry is 'price maker'. This is feature of


1821) Price elasticity of demand for individual firm is perfectly elastic. This is feature of


1822) Product differentiation is a feature of


1823) No selling costs exist. This is feature of


1824) Tooth paste industry is example of


1825) Price discrimination take place in


1826) Under which market situation demand curve is linear and parallel to X-Axis?


1827) AR = MR = P, is a feature of


1828) Under _____ market condition, firms in industry make normal profit in the long run.


1829) Which of the following is not a characteristic of a competitive market?


1830) Assume that when price is Rs. 20, quantity demanded is 9 units, and when price is Rs. 19, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units.


1831) Suppose a firm is producing a level of output such that MR > MC. What should be firm do to maximize its profits?


1832) Assume that when price is Rs. 20, quantity demanded is 15 units, and when price is Rs. 18, quantity demanded is 18 units. Based on this information, what is the marginal revenue resulting from an increase in output from 15 units to 18 units?


1833) Marginal Revenue is equal to


1834) Suppose that a sole proprietorship is earning total revenues of Rs. 1,00,000 and is incurring explicit costs of Rs. 75,000. If the owner could work for another company for Rs. 30,000 a year, we would conclude that ____________.


1835) Assume that consumers' incomes and the number of sellers in the market for a product both decrease. Based upon this information we can conclude, with certainty, that equilibrium


1836) Suppose that the supply of cameras increases due to an increase in foreign imports. Which of the following will most likely occur?


1837) Assume that in the market for product Z there is a simultaneous increase in demand and the quantity supplied. The result will be


1838) Suppose the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilisation of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?


1839) Oligopolistic industries are characterized by


1840) Firm encounters its "shutdown point" when


1841) Suppose that, at the profit-maximizing level of output, a firm finds that market price is less than average total cost, but greater than average variable cost. Which of the following statements is correct?


1842) When price is less than average variable cost at the profit-maximising level of output, a firm should


1843) The structure of the toothpaste industry in India is best described as


1844) When ___________, we know that the firms are earning just normal profits.


1845) When _____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.


1846) When _____, there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that the right goods are being sold to the right people at the right price.


1847) The competitive firm maximizes profit when it produces output up to the point where


1848) When an oligopolist individually chooses its level of production to maximize its profits, it charges a price that is


1849) In the long-run equilibrium of a competitive market, firms operate at


1850) Time element was conceived by


1851) When e > 1 then MR is


1852) When e = 1 then MR is


1853) In oligopoly, when the industry is dominated by one large firm which is considered as leader of the group. This is called


1854) When the product are sold through a centralized body oligopoly is known as


1855) Which three of the following characteristics apply to oligopoly?
I. Each firm faces a downward sloping demand curve.
II. A few large firms account for a high percentage of industry output.
III. Many small firms account for a high percentage of industry output.
IV. Each firm faces a horizontal demand curve.
V. The industry is often characterized by extensive non-price competition.
Select the correct answer from the options given below


1856) To achieve more market power, firms can


1857) Under which type of market structure is price rigidity (stickiness) often predicted?


1858) Which two of the following assumptions apply to 'kinked-demand' analysis in oligopoly markets?


1859) In the above figure, the firm is making an economic loss at


1860) In the above figure, the firm is break even points at


1861) In the above figure, when the firm produces output corresponding to point c, the firm's marginal cost -


1862) If the firm is not producing anything, it will have an operating loss equal to it __________.


1863) If new firm enters in the industry in long run in perfect competitive market, supply curve.