| 51 |
In the short run, a competitive firm's shutdown point occurs where price equals: |
Economics/Business Economics
Profit maximisation |
Easy |
| 52 |
The break-even point of a competitive firm is where price equals: |
Economics/Business Economics
Profit maximisation |
Easy |
| 53 |
A competitive firm sells 100 units at ₹12 each, and its average cost at this output is ₹10. What is its super… |
Economics/Business Economics
Profit maximisation |
Medium |
| 54 |
In the short run, market price is ₹8, minimum AVC is ₹6 and minimum AC is ₹10. The firm should: |
Economics/Business Economics
Profit maximisation |
Medium |
| 55 |
At P = ₹20 a competitive firm's best output (P = MC) is 50 units, where AC = ₹24 and AVC = ₹18. What should i… |
Economics/Business Economics
Profit maximisation |
Hard |
| 56 |
An improvement in production technology will: |
Economics/Business Economics
Supply |
Easy |
| 57 |
The government imposes a unit tax on a good. Its supply curve will: |
Economics/Business Economics
Supply |
Easy |
| 58 |
When price rises from ₹10 to ₹12, quantity supplied rises from 100 to 130 units. What is the price elasticity… |
Economics/Business Economics
Supply |
Medium |
| 59 |
A straight-line supply curve passing through the origin has price elasticity of supply equal to: |
Economics/Business Economics
Supply |
Medium |
| 60 |
Firm 1 supplies q = p − 5 for p ≥ 5 (zero otherwise) and firm 2 supplies q = p − 10 for p ≥ 10 (zero otherwis… |
Economics/Business Economics
Supply |
Hard |
| 61 |
At a price above the equilibrium price there is: |
Economics/Business Economics
Market equilibrium |
Easy |
| 62 |
If demand for a good increases while supply is unchanged, the equilibrium: |
Economics/Business Economics
Market equilibrium |
Easy |
| 63 |
Market demand is qd = 200 − p and market supply is qs = 120 + p. Find the equilibrium price and quantity. |
Economics/Business Economics
Market equilibrium |
Medium |
| 64 |
Demand and supply of a good both increase by the same amount. The equilibrium: |
Economics/Business Economics
Market equilibrium |
Medium |
| 65 |
In a perfectly competitive industry with free entry and exit, identical firms have minimum AC of ₹10. If mark… |
Economics/Business Economics
Market equilibrium |
Hard |
| 66 |
A price ceiling is: |
Economics/Business Economics
Price ceiling and price floor |
Easy |
| 67 |
The minimum support price announced for wheat is an example of: |
Economics/Business Economics
Price ceiling and price floor |
Easy |
| 68 |
Demand is qd = 100 − 2p and supply is qs = 20 + 2p. If the government fixes a ceiling price of ₹15, what is t… |
Economics/Business Economics
Price ceiling and price floor |
Medium |
| 69 |
A likely result of a binding price ceiling on an essential good is: |
Economics/Business Economics
Price ceiling and price floor |
Medium |
| 70 |
The government fixes a minimum wage above the equilibrium wage in a competitive labour market. The direct res… |
Economics/Business Economics
Price ceiling and price floor |
Hard |
| 71 |
Which of the following is a stock variable? |
Economics/Business Economics
Basic concepts of macroeconomics |
Easy |
| 72 |
Wheat bought by a flour mill to grind into flour is best classified as: |
Economics/Business Economics
Basic concepts of macroeconomics |
Easy |
| 73 |
Gross investment in an economy is ₹500 crore and depreciation is ₹80 crore. What is net investment? |
Economics/Business Economics
Basic concepts of macroeconomics |
Medium |
| 74 |
Why is a machine bought by a textile firm treated as a final good and not as an intermediate good? |
Economics/Business Economics
Basic concepts of macroeconomics |
Medium |
| 75 |
An economy's capital stock was ₹1,000 crore at the start of a year. During the year, gross investment was ₹15… |
Economics/Business Economics
Basic concepts of macroeconomics |
Hard |
| 76 |
In the two-sector circular flow, which flow moves from households to firms? |
Economics/Business Economics
Circular flow of income |
Easy |
| 77 |
Which of the following is an injection into the circular flow of income? |
Economics/Business Economics
Circular flow of income |
Easy |
| 78 |
In the circular flow, the money flow and the real flow: |
Economics/Business Economics
Circular flow of income |
Medium |
| 79 |
Why are production, income and expenditure equal in a simple two-sector economy with no saving? |
Economics/Business Economics
Circular flow of income |
Medium |
| 80 |
In a two-sector economy, households save part of their income but planned investment by firms is less than th… |
Economics/Business Economics
Circular flow of income |
Hard |
| 81 |
Which of the following is included when estimating national income? |
Economics/Business Economics
Methods of calculating national income |
Easy |
| 82 |
The problem of double counting is avoided by: |
Economics/Business Economics
Methods of calculating national income |
Easy |
| 83 |
A farmer grows wheat worth ₹100 using no purchased inputs and sells it to a miller. The miller sells flour fo… |
Economics/Business Economics
Methods of calculating national income |
Medium |
| 84 |
In the same chain of farmer, miller and baker, what is the contribution of these three producers to GDP? |
Economics/Business Economics
Methods of calculating national income |
Medium |
| 85 |
A used car dealer buys a second-hand car for ₹3 lakh and sells it for ₹3.2 lakh in the same year. How much do… |
Economics/Business Economics
Methods of calculating national income |
Hard |
| 86 |
National income in India refers to: |
Economics/Business Economics
National income aggregates |
Easy |
| 87 |
Net indirect taxes are equal to: |
Economics/Business Economics
National income aggregates |
Easy |
| 88 |
GDP at market price is ₹1,000 crore, depreciation is ₹100 crore, net factor income from abroad is −₹20 crore … |
Economics/Business Economics
National income aggregates |
Medium |
| 89 |
Nominal GDP of a year is ₹2,400 crore and the GDP deflator is 120. What is real GDP? |
Economics/Business Economics
National income aggregates |
Medium |
| 90 |
For a country, GNP is less than GDP. What can be concluded? |
Economics/Business Economics
National income aggregates |
Hard |
| 91 |
Pollution caused by a factory that harms nearby residents, without any compensation, is an example of: |
Economics/Business Economics
GDP and welfare |
Easy |
| 92 |
Why does GDP underestimate economic activity in an economy where many households grow food for themselves and… |
Economics/Business Economics
GDP and welfare |
Easy |
| 93 |
Real GDP of a country rose by 6%, but almost all the extra income went to the richest 1% of people. Which lim… |
Economics/Business Economics
GDP and welfare |
Medium |
| 94 |
Which situation would raise GDP but may well reduce welfare? |
Economics/Business Economics
GDP and welfare |
Medium |
| 95 |
Country X has a higher GDP than country Y but a much larger population. Which measure would be a better first… |
Economics/Business Economics
GDP and welfare |
Hard |
| 96 |
The main difficulty of barter that money removes is the need for: |
Economics/Business Economics
Money |
Easy |
| 97 |
A shop lists the price of a shirt as ₹600 and of a pair of shoes as ₹1,200. Which function of money is shown … |
Economics/Business Economics
Money |
Easy |
| 98 |
Why is a cheque NOT considered legal tender? |
Economics/Business Economics
Money |
Medium |
| 99 |
A family keeps part of its savings as cash at home to use for a wedding next year. This mainly uses money as … |
Economics/Business Economics
Money |
Medium |
| 100 |
Which statement best explains why modern paper currency is accepted even though the paper itself is nearly wo… |
Economics/Business Economics
Money |
Hard |