Classical

December 2013 - Paper3

16:  
A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as
A.

Cross Elasticity of Demand

B.
Substiturion Elasticity of Demand
C.
Complementary Elasticity of  Demand
D.

Price Elasricity of Demand

 
 

Option: D

Explanation :


17:  
If the total cost is  Rs 260 and the total variable cost is Rs 60, what will be total fixed cost if output is

(a) 100 units and

(b) 200 units ?
A.

Rs 200 and Rs 200

B.

Rs100 and Rs 200

C.

Rs 260 and Rs 100

D.

Rs160 and Rs100

 
 

Option: B

Explanation :


18:  
Optimal input combination to minimize the cost for a given output will be at the point where :
A.

Isocost is tangent to Isoquant

B.

MRTS between inputs is equal

C.
Any movement from optimum point will lead to low ievel of output
D.
All the above conditions are fulfilled.
 
 

Option: D

Explanation :


19:  
What kinds of actions can be taken to put the rivals at a disadvantageous position under oligopoly market ?
A.

Commitments

B.

Threats

C.

Promises

D.

All the above

 
 

Option: C

Explanation :


20:  
There is no exceptions to the law of demand in the case of
A.

Giffen goods

B.

Normal goods

C.
Articles of conspicuous consumption
D.

Ignorance of the buyer

 
 

Option: B

Explanation :




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