Economics GK

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46 The demand curve shows that price and quantity demanded are

A
directly related only
B
directly proportional and also directly related
C
inversely proportional and aslo inversely related
D
inversely related only

47 Which of the following could assist economic growth in developing countries?

A
An increase in the level of education
B
Decrease in the terms of trade
C
An increase in the rate of taxation
D
Decrease in foreign investment

48 Which of the following are non-bulk items of import?

A
increase in wages
B
reduction in taxes
C
decrease in money supply
D
decrease in taxes

49 When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will

A
decrease
B
increase
C
remain the same
D
contract

50 In equilibrium, a perfectly competitive firm will equate

A
marginal social cost with marginal social benefit
B
market supply with market demand
C
marginal profit with marginal cost
D
marginal revenue with marginal cost

51 Operating Surplus arises in the

A
Government Sector
B
Production for self-consumption
C
Subsistence farming
D
Enterprise Sector

52 Which is the most essential function of an entrepreneur ?

A
Supervision
B
Management
C
Marketing
D
Risk bearing

53 Extension or contraction of quantity demanded of a commodity is a result of a change in the

A
unit price of the commodity
B
income of the consumer
C
tastes of the consumer
D
climate of the region

54 Which from the following is not true when the interest rate in the economy goes up ?

A
Saving increases
B
Lending decreases
C
Cost of production increases
D
Return on capital increases

55 When the price of a commodity falls, we can expect

A
the supply of it to increase
B
the demand for it to fall
C
the demand for it to stay constant
D
the demand for it to increase

56 Why is rent earned by land even in the long run ?

A
Land has original and indestructible power
B
Land is a man made factor
C
Its supply is inelastic in the short run
D
Its supply is inelastic in the long run

57 Which of the following are not fixed costs?

A
Rent on land
B
Municipal taxes
C
Wages paid to workers
D
Insurance charges

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

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

59 A fall in demand or rise in supply of a commodity:

A
Increases the price of that commodity
B
decreases the price of that commodity
C
neutralises the changes in the price
D
determines the price elasticity

60 It is prudent to determine the size of the output when the industry is operating in the stage of :

A
increasing returns
B
constant returns
C
diminishing returns
D
negative returns