NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 116 of 122)
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- If the demand and cost function of a firm are given as q = 20 − P and C = Q2 + 8Q + 2, then the profit maximizing level of output (in units) will be
- 10
- 8
- 3
- 0
- A profit maximizing firm will stop production in the short run if price is
- less than average cost
- below the marginal cost
- less than average variable cost.
- equal to average cost.
- The burden of a tax on monopoly profit will be
- entirely on the producer
- entirely on the consumer
- equally distributed among the producer and the consumer
- more on the consumer than on the producer.
- An individual՚s supply curve of labour will bend backward when.
- the income effect of a higher wage on the demand for leisure is greater than the substitution effect.
- the substitution effect of a higher was is greater than the income effect.
- the income and substitution effects of a higher wage reinforce each other.
- leisure is a Giffen good
- The necessary condition for a paretooptimal allocation of any tow factors of production, say K and L, are equality of
- marginal productivity of the two factors, K and L is all uses firms.
- MRTS between the two factors in all uses⟋firms
- MRTS with the ratio of their market prices
- the market prices of the tow factors
- Match List with List II and select the correct answer:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 116 of 122) List-I List-II - Value added
- Nominal income
- Real income
- transfer earnings
- Constant prices Input-Output matrix
- Pension
- Current prices
- A
- B
- C
- D
- 4
- 2
- 3
- 1
- 2
- 4
- 1
- 3
- 4
- 2
- 1
- 3
- 2
- 4
- 3
- 1
- Value added means value added
- output at market prices
- goods and services less depreciation
- goods and services less cost of intermediate goods and services
- output at factor cost
- Gross national product includes depreciation
- Gross national product includes depreciation
- value added includes transfer payments
- personal income includes undistributed profits
- disposable income includes personal taxes
- The GNP at market price for 1983 − 84 was ₹ 192866 crores and the GNP at factor cost was ₹ 171201 crores. The government paid at ₹ 5107 crores as subsides crores as subsidies during the year. The amount of indirect taxes in crores for the year should work out to
- ₹ 31879
- ₹ 26772
- ₹ 21665
- ₹ 16558
- GNP exceeds NNP by
- the amount of total taxes
- government expenditure
- transfer payments
- the difference between gross investment and net investment
- If MPC = APC for all levels of income (Y) , then the corresponding consumption function will be
- C = a + bY
- C = bY
- C = bY2
- C = a + b Y2
- The accelerator theory of investment relates the current rate of investment to the
- long-term rate of interest
- short-term rate of interest
- current level of output
- change in the level of output
- If the consumption function undergoes a parallel shift.
- rise
- fall
- remain constant
- be double
- Match List with List II and select the correct answer:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 116 of 122) List-I List-II - J M Keynes
- J Duesenberry
- M Friedman
- F Modigliani
- Permanent income hypothesis
- Life cycle hypothesis
- Relative income hypothesis
- Absolute income hypothesis
- A
- B
- C
- D
- 4
- 3
- 2
- 1
- 3
- 4
- 1
- 2
- 3
- 4
- 2
- 1
- 4
- 3
- 1
- 2
- If MPS rises, then the equilibrium level of output will
- rise
- fall
- remain constant
- be indeterminate