NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 106 of 122)
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- Disposable income is
- National Income
- National Income less direct taxes
- national Income less direct taxes less undistributed profits
- National Income less direct taxes less undistributed profits plus transfer payments.
- Net National Income at market prices is equal to
- Gross national product at market prices minus depreciation
- Net Domestic Product at market prices plus or minus earnings from abroad
- Gross Domestic product minus indirect taxes and subsidies
- Gross National Product plus or minus depreciation.
- Assume that in a country՚s national accounts, the corporate sector՚s savings equal its investment. Also, the government՚s budget is exactly balanced. An excess of household savings over its own investment will be reported as
- government sector՚s excess of investment over savings
- excess of imports over exports in the external account.
- excess of exports over imports in the external account
- no change in the external account.
- In the case of a Cobb-Douglas production function, output elasticity of an input is
- a constant
- unity
- a function of all the inputs
- indeterminate
- A consumer will generally obtain the greatest total utility from expenditure of a given income when.
- the marginal utility of each commodity purchased is unity
- the marginal utility of each commodity purchased is in the same ratio to its price.
- the marginal utility of each commodity purchased is in the same ratio to its cost of production.
- the prices of the commodities purchased are equal to one another.
- If the price consumption curve is negative, it is because of one or more of the following reason.
- Negative Income effect is stronger than the substitution effect.
- Substitution effect is negative.
- The commodity is Giffengood
- Of the reason given above
- 1 alone is correct
- 1 and 2 are correct
- 2 and 3 are correct
- I and 3 are correct
- Which one of the following assumptions is not necessary for the cardinal utility theory?
- Rationality of the consumer
- Constant marginal utility of money
- Perfectly competitive market
- Additively of utility
- If two goods are complements then a rise in the price of one commodity will induce.
- an upward shift in the demand for the other commodity
- a rise in the price of the other commodity
- a downward shift in the demand for the other commodity
- no shift in the demand of the other commodity
- the relation between average revenue (AR) marginal revenue (MR) and price elasticity of demand (Ep) is such that
- the sum of AR and MR equals the Ep
- the difference between AR and MR depends inversely on Ep.
- the difference between AR and Ep depends on the value of MR.
- when AR = MR. Ep = 0
- Which one of the following statements is correct?
- Diminishing and independent marginal utilities imply convexity of the indifference curves.
- Independent utilities and convex indifference curves imply diminishing marginal utility of each good.
- Diminishing marginal utilities and convex indifference curves imply that the marginal utility of each commodity is independent of the quantity of the other.
- Thee is no relation between utility and indifference curve
- if sales tax on a commodity is raised, but the revenue earned through its sale decreases sharply, which one of the following statements about the nature of this commodity would be correct?
- Price elasticity of demand for it is low
- It must be an essential good
- Price elasticity of demand for it is high
- Price elasticity of demand for it is unity
- If the price elasticity of demand for a commodity is less than unity, a decrease in price would result in:
- a less than proportionate change in the quantity purchased
- a more than proportionate change in the quantity purchased
- an increase in the total expenditure on the product
- a shift in the demand curve
- Income elasticity of demand equals
- Proportionate change in income of the consumer Proportionate change in quantity demanded of a commodity
- Proportionate change in quantity demanded of a commodity Proportionate change in income of the consumer
- Proportionate change in price of the commodity Proportionate change in income of the consumer
- Proportionate change in income of the consumer
- Proportionate change in price of the commodity
- Dumping involves
- selling at lower prices in the market
- price discrimination between the two markets.
- surplus production at lower cost
- price discrimination between the home market and foreign market.
- Which one of the following views about profit could be associated with the name of frank Knight?
- Profit is an implicit return to owned factors
- profit is a reward for innovation.
- profit is closely tied with risk and uncertainty.
- profit is merely the earnings of monopoly