NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 74 of 122)
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- Consider the following statements regarding Pareto-optimality in consumption (two commodities & two individuals case) :
- Each point in the Edgeworth Box, in this case, specifies six variables.
- Each point on the contract curve represents a Pareto-optimal distribution.
- Each point on the contract curve depicts a situation of general equilibrium in consumption.
- Which of the statements given above are correct?
- 1,2 and 3
- 1 and 2, only
- 2 and 3, only
- 1 and 3, only
- What does the Coase՚s theorem deal with?
- Internalisation of externalities
- Pricing of public goods
- Solution to the problem of externalities of terms of well-defined and exchangeable property rights
- None of the above
- Which one of the following is the correct statement? Consumer surplus is largest in
- discriminating monopoly
- monopolistic competition
- single-price monopoly
- perfect competition
- Consider the following statements relating to consumer surplus:
- Boulding renamed consumer surplus as buyer surplus.
- Hicks explained consumer surplus through indifference curves.
- There is direct relationship between price and consumer surplus.
- Consumer surplus is nothing but the difference between the price that ‘one is willing to pay’ and the price ‘one actually pays for a particular product’
- Which of the statements given above are correct?
- 1,2 and 4
- 2,3 and 4
- 1,3 and 4
- 1,2 and 4
- Which one of the following is not included in Net National Product (NNP) at factor cost?
- Undistributed profits
- Rent
- Consumption of fixed capital
- Interest
- If utensils worth ₹ 1000/-are produced with copper worth ₹ 500/-, wages paid are ₹ 100/-, other material purchased is worth ₹ 100/-and depreciation of machinery is zero, then what is the value added in the process?
- ₹ 1000/-
- ₹ 500/-
- ₹ 400/-
- ₹ 300/-
- Consider the following statements:
- GDP at current prices and GDP at constant prices are identical in the base year.
- GDP at current prices is the economy՚s final output valued at the base year՚s prices.
- GDP at constant prices is the economy՚s final output valued at the base year՚s prices.
- GDP at current prices and GDP at constant prices are identical at the current year.
- Which of the statements given above are correct?
- 1 and 3
- 1 and 2
- 3 and 4
- 2 and 4
- Based on the above graph, match List-I (Variable) with List-II (Identified in the Graph) and select the correct answer using the code given below the Lists:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 74 of 122) List-I List-II - Aggregate Demand
- Aggregate Supply
- Consumption at zero level of income
- Level of Investment
- C + I
- C + S
- ab
- n
- m
- A
- B
- C
- D
- 1
- 5
- 4
- 3
- 3
- 2
- 5
- 1
- 1
- 2
- 5
- 3
- 3
- 5
- 4
- 1
- Suppose in two economies A and B, both of which are closed, Y = C + G (Y = real income, C = real consumption and G = real govt. Expenditure) . Assume that both economies have identical consumption function C = 200 + 0 − 25 Y. Further, assume G = 200 units. Finally in economy A, G is spent on building roads and bridges while in economy B, G is spent on running cars and air-conditioners for public servants. What will be the equilibrium level of Y in economies A and B?
- A: 400; B: 400
- A: 800; B: 600
- A: 1600; B: 800
- A: 1600; B: 1600
- Consider the following: There will be a change in the level of national income with the following changes:
- Government spending and taxes increased by amount x.
- Government spending & taxes decreased by amount x.
- Only Government spending increased by amount x.
- Only Government spending decreased by amount x.
- What is the correct sequence of the changes in level of national income in descending order?
- 2 − 4 − 3 − 1
- 3 − 1 − 2 − 4
- 2 − 1 − 3 − 4
- 3 − 4 − 1 − 2
- Which one of the following statements is correct? Investment increases with
- an increase of output and a decrease in capital stock
- a decrease of output and an increase in capital stock
- an increase in both output and capital stock
- a decrease in both output and capital stock
- Compared with monopolist charging single price, a monopolist adopting discriminatory practices would not end up with which one of the following?
- Larger revenue and larger profit
- Larger output and larger revenue
- Larger profit and larger output
- Shorter output but larger profit
- Which one of the following is the correct statement? Price of a commodity does not go down when
- only supply curve move rightward
- only supply curve moves leftward
- only demand curve moves leftward
- supply curve moves rightward and demand curve moves leftward
- Which one of the following statements is correct? A monopolist charging different prices in two different markets will charge a higher price in the market in which the price elasticity of
- demand is greater
- supply is greater
- demand is smaller
- supply is smaller
- Which one of the following statements is correct? A firm under perfect competition will be in stable equilibrium in the long run if the price is equal to
- marginal revenue
- marginal cost
- average fixed cost
- average variable cost