Competitive Exams: Economics MCQs (Practice-Test 39 of 122)

  1. Which of the following conditions relating to the marginal revenue product of a factor tend to diminish as input of the factor increases?

    1. Technical impact of diminishing marginal returns

    2. Diminishing rate of substitutability of a factor

    3. Diminishing marginal utility of a factor

    4. Tendency of the marginal revenue of the product to fall

    Select the correct answer using the codes given below:

    Codes:

    1. 1 and 3

    2. 1 and 2

    3. 2, 3 and 4

    4. 1, 2, 3 and 4

  2. Match List I with List II and select the correct answer using the codes given below the lists:

    List-I List-II
    1. Increasing returns

    2. Income distribution

    3. Unlimited labour supply

    4. Diminishing returns

    1. Nicholas Kaldor

    2. Allyn young

    3. David Ricardo

    4. Arthur Lewis

    • A
    • B
    • C
    • D
      • 1
      • 4
      • 1
      • 3
      • 2
      • 1
      • 4
      • 3
      • 3
      • 4
      • 2
      • 1
      • 3
      • 1
      • 4
      • 2
  3. Considering the Cobb-Douglas production function. Y = ALa Kβ a, β > 0 (symbols have the usual meaning), Match List with list II and select the correct answer using the codes given below the list.

    List-I List-II
    1. Increasing returns to scale

    2. Decreasing returns to scale

    3. Constant returns to scale

    4. Diminishing returns to factors

    1. a + β = 1

    2. a + β > 1

    3. a + β < 1

    4. a, β < 1

    • A
    • B
    • C
    • D
      • 2
      • 3
      • 1
      • 4
      • 2
      • 3
      • 4
      • 1
      • 3
      • 2
      • 4
      • 1
      • 3
      • 2
      • 1
      • 4
  4. For commodity X, the market demand given by Qx = 25 − 2P and its market supply by Qx = 3 P. The equilibrium price (P) and quantity (Q) ill be respectively

    1. 5 and 15

    2. 5 and 19

    3. 3 and 15

    4. 3 and 19

  5. Which of the following conditions denote the equilibrium of a firm under monopsony in factor market and perfect competition in the product market?

    1. marginal factor cost is equal to average factor cost.

    2. marginal factor cost is greater than average factor cost.

    3. marginal factor cost is equal to marginal revenue product.

    Select the correct answer using the codes given below:

    Codes:

    1. 1 and 3

    2. 2 and 3

    3. 2 and 4

    4. 1 and 4

  6. Which one of the following figures shows the correct relationship between AR and MR (x axis-quantity, y axis-AR and MR)?

  7. Which one of the following is an example of join supply?

    1. Wool and mutton

    2. Diesel and bus

    3. Ink and fountain pen

    4. Sugar and tea.

  8. The degree of monopoly power as defined by Rothschild is based on

    1. price elasticity of demand

    2. price cross-elasticity of dream

    3. slope of the demand curve of a firm and of industry

    4. super-normal profit

  9. Which one of the following DOES NOT represent the Lerner's measure of the degree of monopoly power (symbols have the usual meaning)?

    1. 1- (MR/P)

    2. (P-MC)/P

    3. 1/e

    4. 1- (1 − e)/e

  10. Match List I with List II and select the correct answer using the codes given below the lists:

    List-I List-II
    1. Sales revenue maximmisation

    2. Entry-prevention princing

    3. Managerial discretion

    1. Cyert and March

    2. Baumol

    3. Bain

    4. Williamson

    • A
    • B
    • C
      • 2
      • 3
      • 4
      • 2
      • 1
      • 3
      • 3
      • 4
      • 2
      • 4
      • 1
      • 3
  11. On comparing the equilibrium position of a monopsonist with a producer in a perfectly competitive market, one would find that under prefect competition, the price is

    1. higher and the output is smaller for a monopsonist than for the producer

    2. lower and the output is larger for the monpsonist than for the producer

    3. lower and the output is also smaller for the monopsonist than for the producer

    4. higher and the output is also larger for the monopsonist than for the producer.

  12. Full-cost princing is applicable to

    1. multi-product, single-process, singlemarket case

    2. single-product, single-process, singlemarket case

    3. multi-product, multi-process, singlemarket case

    4. Single-product, multi-process, multimarket case

  13. Modem theory of rent as expounded by Joan Robinson states that rent is the difference between the actual payment for the use of land and its

    1. monopoly earnings

    2. transfer earnings

    3. marginal earnings

    4. average earnings

  14. Which one of the following is M. Kalecky theory of macro-distribution?

    1. Ful-cost factor princing theory

    2. Theory of labour share in the nation income

    3. Theory to measure the degree of monopoly in factor pricing

    4. Theory of capitalist's shae in the total turnover

  15. In his adding up theorem Euler assuns that elasticity of substitution

    1. equal to zero

    2. greater than zero but less than one

    3. equal to one

    4. greater than one