Classical

Managerial Economics - Managerial Economics Questions

41:  

A demand curve which takes the form of a horizontal line parallel to the quantity axis illustrates elasticity which is

A.

< 1

B.

Infinite

C.

> 1

D.

Zero

 
 

Option: B

Explanation :


42:  

Match the following :

List-I (Economist)

(A) Samuelson

(B) Benham

(C) Marshall

(D) Robinson

List-II (Statement)

1. A full account of the demand, or perhaps we can say the state of demands, for any good in given market at a given time should state what the volume of sales would be at each of a series of prices. Such an account taking the form of a tabulary statement, is known as a demand schedule.

2. Relationship between price and quantity bought is called the demand schedule.

3. The greater the amount to be sold, the smaller must be the price at which it is offered in order that it may find purchasers, or in other words, the demand increases with a fall in price and diminishes with a rise in price.

4. The elasticity of demand at any price or at any output is the proportional change of amount purchased in response to a small change in price divided by the proportional change in price.

5. Economics is the science which treats wealth.

A.

(A) (B) (C) (D)

1    3    4    2

B.

(A) (B) (C) (D)

2    1    3    4

C.

(A) (B) (C) (D)

3    1    4    2

D.

(A) (B) (C) (D)

1    2    3    4

 
 

Option: B

Explanation :


43:  

Which statement is/are true?

A.

If demand is elastic, a price increase will lower total revenue, and a decrease in price will raise total revenue

B.

If demand is elastic, the relative change in quantity is larger than that of price, so a given percentage increase in price causes quantity to decrease by a larger percentage, decreasing total revenue

C.

If demand is inelastic, a price increase will produce a less than proportionate decline in the quantity demanded

D.

All of the above

 
 

Option: D

Explanation :


44:  

Match the following :

List-I (GNP)

(A) GNP at factor cost

(B) GNP at market prices

(C) GNP as per Expenditure method

(D) GNP as per Income method

List-II (Formula)

1. GNP at market prices - Indirect taxes + subsidies

2. GDP at market prices + Net Income from Abroad

3. Private consumption + Gross Domestic Private investment + Net foreign Investment + Government Expenditure on goods and services

4. Wages and salaries + Rents + Interests + Dividends + Undistributed corporate profits + Mixed Incomes + Direct taxes + Indirect Taxes + Depreciation + Net Income from Abroad

5. Per capita income/Dividend

A.

(A) (B) (C) (D)

1    2    3    4

B.

(A) (B) (C) (D)

4    1    3    2

C.

(A) (B) (C) (D)

3    1    2    4

D.

(A) (B) (C) (D)

3    4    2    1

 
 

Option: A

Explanation :


45:  

The short-run supply curve of market always

A.

Slope upward from left to right

B.

Slope downward from left to right

C.

Slope horizontally

D.

None of the above

 
 

Option: A

Explanation :




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