Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?
- A. induce greater demand for beef
- B. induce greater demand for fish
- C. induce lower demand for fish
- D. equate demands for beef and fish
In drawing an individual’s demand curve for a commodity, which of the following is not kept constant? The
- A. individual's money income
- B. price of subtitutes
- C. price of complementary goods
- D. price of the commodity under consideration
Which of the following statements describes a mixed economy?
- A. The government and the private sector interact in solving the basic economic problems
- B. The invisible hand solves the basic economic problems
- C. The government produces and distributes all goods and services
- D. Society answers the 'what', 'how', and 'for whom' questions only through the market system
What fundamentally determines how much a consumer spends in a producer’s shop?
- A. Individual's propensity to consume
- B. level of his taxation
- C. level of his income
- D. Individual's taste or fashion
Population density refers to?
- A. densely populated urban centres
- B. the total area divided by the total population
- C. densely populated rural areas
- D. the total population divided by the total area
A country has a population distribution as shown below:
\(\begin{array}{c|c}
\text{Age Group years} & \text{ Corresponding percentage} \\
\text{Above 60} & 22 \\
15 – 60 & 60 \\
0 – 14 & 15 \\
\end{array}\)
The dependency ratio is?
- A. 3:2
- B. 1:3
- C. 2:3
- D. 1:5
Mobility of labour is NOT affected by
- A. optimum size of population
- B. marriage and family
- C. regulation of trade unions
- D. period of training
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
- A. rent
- B. profit
- C. interest
- D. surtax income
A firm achieves least cost in production by substituting factors until
- A. their factor prices are equal
- B. their marginal-physical products are each equal to their factor prices
- C. their marginal-physical products are each zero
- D. the ratio of their marginal-physical products equals the ratio of their prices
Production in Economics can be defined as the
- A. totality of producing, buying and consuming
- B. transformation of raw materials and services in order to provide ultimate utility
- C. transformation of raw materials and services in order to make maximum profit
- D. production of goods and services for consumption
The degree of specialization is limited by the
- A. avalibility of specialized skills and machinery
- B. marginal cost exceeding marginal revenue
- C. extent of the market
- D. disadvantage of standardization
A firm is at its optimum size when?
- A. it produce the greatest output at a minimum cost
- B. it has a motive to increase output
- C. marginal cost equals marginal revenue
- D. marginal cost is less than marginal revenue
Under normal circumstances, the concept of consumers sovereignty implies that
- A. the consumer and not the producer owns the means of production
- B. the producer and not the consumer determines what is to be produced
- C. the consumer and not the producer determines what is to be produced
- D. both the consumer and the producer determines what should be produced
Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
- A. Variable cost
- B. opportunity cost
- C. Total cost
- D. Prime cost
Choice in economic life is necessitated by?
- A. the need to construct scale of preference
- B. the opportunity cost of consumption
- C. unlimited wants
- D. scarcity of economic resources
When total revenue is at a maximum, marginal revenue is?
- A. constant
- B. negative
- C. zero
- D. positive
- E. maximum
The unemployment associated with a recession is called?
- A. voluntary
- B. frictonal
- C. cyclical
- D. structural
- E. maximum
Disguised unemployment
- A. exist when manpower is not being utilized efficiently
- B. calls for the implementation of five plans
- C. can be eliminated if the press is free
- D. can be eliminated if the capital output ratio is increased
- E. is a statistical artifact with no economic meaning
The act of combining factor inputs in order to obtain specific output is known as
- A. factor procurement
- B. manufacturing
- C. investment
- D. industrialization
- E. production
Which of the following is NOT a part of the fixed costs of a limited liability company?
- A. Interest on loans
- B. Rent on buildings
- C. Depreciation reserves
- D. Management expenditure
- E. Wages
Under normal circumstances a producer will bear the entire burden of taxation on his output if the?
- A. demand for his product is completely elastic
- B. supply of his goods is more elastic than the demand
- C. demand for his product is more elastic than the supply
- D. production of his commodities is subject to diminishing returns
- E. production of his commodities is subject to increase returns to scale