Classical

Advanced Questions - Section 8

26:  

The consumer is in equilibrium at a point where the budget line

A.

Is below an indifference curve

B.

Is above an indifference curve

C.

Is tangent to an indifference curve

D.

Cuts an indifference curve

 
 

Option: C

Explanation :

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27:  

Which of the following is the best general definition of the study of economics?

A.

Inflation and unemployment in a growing economy.

B.

The best way to invest in the stock market.

C.

Business decision making under foreign competition.

D.

Individual and social choice in the face of scarcity.

 
 

Option: D

Explanation :

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28:  

Risk in an investment can be defined as

A.

Potential variability in future cash flows.

B.

Dispersion of returns around the mean or expected return measured by standard deviation.

C.

Returns not adequate to compensate for inflation.

D.

#1 and #2.

 
 

Option: D

Explanation :

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29:  

If net profit is Rs. 25,000/- after writing off preliminary expenses of Rs. 5000/- then the funds from operation will be

A.

Rs. 25,000/-

B.

Rs. 30,000/-

C.

Rs. 20,000/-

D.

Rs. 10,000/-

 
 

Option: B

Explanation :

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30:  

360 degree method relates to

A.

Performance appraisal

B.

Organisation climate

C.

Employees morale

D.

Retrenchment method

 
 

Option: A

Explanation :

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