Economics GK

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16 The situation in which total revenue is equal to total cost, is known as

A
monopolistic competition
B
equilibrium level of output
C
break-even point
D
perfect competition

17 Subsidies mean

A
payment made by companies to shareholders
B
payment by government for purchase of goods and services
C
payment made by the government to business enterprises, without buying any goods and services
D
payment made by business enterprises to factors of production

18 A consumer is said to be in equilibrium, if

A
he is able to fulfil his need with a given level of income
B
he is able to live in full comforts with a given level of income
C
he is able to locate new sources of income
D
he can fulfil his needs without consumption of certain items

19 When there is one buyer and many sellers then that situation is called

A
Monopoly
B
Single buyer right
C
Down right
D
Double buyers right

20 Equilibrium is a condition that can

A
never change
B
change only if some outside factor changes
C
change only if some internal factor changes
D
change only if government policies change

21 The fixed cost on such factors of production which are neither hired nor bought by the firm is called

A
social cost
B
opportunity cost
C
economic cost
D
surcharged cost

22 The demand curve for a Giffen good is :

A
upward rising
B
downward falling
C
parallel to the quantity axis
D
parallel to the price axis

23 A refrigerator operating in a chemist’s shop is an example of :

A
free good
B
final good
C
producers good
D
consumer’s good

24 Surplus earned by a factor other than land in the short period of referred to as

A
economic rent
B
net rent
C
quasi-rent
D
super-normal rent

25 The ‘break-even’ point is where

A
marginal revenue equals marginal cost
B
average revenue equals average cost
C
total revenue equals total cost
D
None of the above

26 In the long-run equilibrium, a competitive firm earns

A
Super-normal profit
B
Profits equal to other firms
C
Normal profit
D
No profit

27 The term utility means

A
usefulness of a commodity
B
the satisfaction which a commodity yields
C
the service which a commodity is capable of rendering
D
None of these

13 What is land ceiling?

A
To fix a land area for irrigation purposes
B
To fix the quantum of land held by a family
C
To fix rural land holdings at the existing level
D
To fix urban land holdings at the existing level

29 Marginal cost is the

A
cost of producing a unit of output
B
cost of producing an extra unit of output
C
cost of producing the total output
D
cost of producing a given level of output

30 Under Perfect Competition :

A
Marginal Revenue is less than the Average Revenue
B
Average Revenue is less than the Marginal Revenue
C
Average Revenue is equal to the Marginal Revenue
D
Average Revenue is more than the Marginal Revenue