Given:
Private income Rs. 30,000
Tax on Corporate Profit Rs. 5,000
Undistributed Profit of Corporate Rs. 4,000
The personal income will be
A. | Rs. 30,000 |
B. | Rs. 21,000 |
C. | Rs. 35,000 |
D. | Rs. 39,000 |
Option: B Explanation : Click on Discuss to view users comments. |
The capital turnover is computed by
A. | Invested Capital/Standard cost |
B. | Capital/Cash x 100 |
C. | Invested Capital/Cash x 100 |
D. | Standard cost/100 |
Option: A Explanation : Click on Discuss to view users comments. |
When all the productive services are increased in a given proportion, the product is increased in the same proportion. This situation is called
A. | Variable cost |
B. | Situation of Constant Returns |
C. | Fixed cost |
D. | Law of Increasing Returns |
Option: B Explanation : Click on Discuss to view users comments. |
If indifference curve has a positive slope, it means
A. | Consumer preferences are unpredictable |
B. | Consumer preferences are irrational |
C. | X-is a discommodity |
D. | Y-is a discommodity |
Option: C Explanation : Click on Discuss to view users comments. |
The price of a commodity is Rs. 20 and the quantity demanded at this price is 200 units. If the price falls to Rs. 16 and the quantity demanded increases to 280 units, calculate the price elasticity
A. | 1.6 |
B. | 2 |
C. | 1.9 |
D. | 1.3 |
Option: B Explanation : Price Elasticity of Demand = (ΔQ/ ΔP) * P/Q where Q is original price and P is original Quantity , ΔQ is change in price and ΔP is change in quantity here Q= 200 ΔQ= 280-200=80 P = 20 ΔP=20-16=4 Putting values in formula (ΔQ/ ΔP) * P/Q we get (80/4) *( 20/200 ) = 2
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