Eco3-1-20

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1.The demand curve for inferior goods will be negatively sloped if:
The substitution effect is stronger than the opposite income effect
The substitution effect is equal to the opposite income effect
The substitution effect is weaker than the opposite income effect
None of these

2.Expansion and contraction of demand mean:
Movement to a higher demand curve
Movement to a lower demand curve
Movement along the same demand curve
None of these

3.The horizontal demand curve for a commodity shows that its demand is:
Highly elastic
Perfectly inelastic
Perfectly elastic
Moderately elastic

4.The condition for long run equilibrium period for a firm operating under perfect market competition are:
MC=MR=AC=AR
AC=MR=MC
AR=MR=MC
AC=MC

5.Price discrimination is possible:
Only under monopoly situation
Under any market form
Only under perfect market
Only under perfect market

6.According to 'Kinked demand curve' in theory of oligopoly:
An oligopoly industry will always have a price leader
Firms will hesitate to follow a price decrease initiated by one firm in the industry
The elasticity of demand is higher for a price increase than a decrease
The marginal revenue curve is a continuous function

7.The theory of distribution deals with:
Personal distribution of income
Functional distribution of income
Sectoral distribution of income
None of these

8.“Interest is a reward for parting with liquidity” according to:
J.M. Keynes
Alfred Marshall
J.S. Mill
Habberler

9.If a monopolist wishes to reach his maximum profit position and if X is output and Y is an input used in production of X, the monopolistic( with respect to employment of input y) should equate the price of Y with:
MPP of Y * price of X
MPP of Y* MR of X
MPP of Y
Total product from Y * price of X

10.Which one of the following is not an assumption about indifference curves?
Slope downward to the right
Convex to the origin
Not crossing each other
Cardinal utility

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This set of Questions are contributed by:

Mr. Bikash Ku. Mallick, Assistant Professor in Economics, Delhi University & Ex-student of FMU.

Congratulations Bikash for your success in Indian Economics Service! 

Mr. Bikash Ku. Mallick has cracked Indian Economic Service 2015 with all India Rank 11.

and the page is developed by our student:

Mr SHIBA SANKAR ADAK, 4th semester, ICT

Thank you Bikash & SHIBA !!!