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- Question
A market situation when firms sell similar but not identical products is termed as
Options- A. perfect competition
- B. imperfect competition
- C. monopolistic competition
- D. oligopoly
- Correct Answer
- monopolistic competition
ExplanationMonopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
In other words, large sellers selling the products that are similar, but not identical and compete with each other on other factors besides price.
- 1. When some goods or productive factors are completely fixed in amount, regardless of price, the supply curve is
Options- A. horizontal
- B. downward sloping to the right
- C. vertical
- D. upward sloping to the right Discuss
- 2. When some goods or productive factors are completely fixed in amount, regardless of price, the supply curve is
Options- A. horizontal
- B. downward sloping to the right
- C. vertical
- D. upward sloping to the right Discuss
- 3. Consider the following statements about a joint-stock company: 1. It has a legal existence. 2. There is limited liability of shareholders. 3. It has a democratic management. 4. It has a collective ownership. Which of the statements given above are correct?
Options- A. 1 and 2 only
- B. 1, 2 and 3 only
- C. 3 and 4 only
- D. 1, 2, 3 and 4 Discuss
- 4. Consider the following statements about indifference curves: 1. Indifference curves are convex to the origin. 2. Higher indifference curve represents higher level of satisfaction. 3. Two indifference curves cut each other.Which of the statements given above is/are correct?
Options- A. 1 only
- B. 1 and 2
- C. 2 and 3
- D. 3 only Discuss
- 5. Which one of the following statements is not correct?
Options- A. When total utility is maximum, marginal utility is zero
- B. When total utility is decreasing, marginal utility is negative
- C. When total utility is increasing, marginal utility is positive
- D. When total utility is maximum,marginal and average utility are equal to each other. Discuss
- 6. Which one of the following hypotheses postulates that individual's consumption in any time period depends upon resources available to the individual, rate of return on his capital and age of the individual?
Options- A. Absolute Income Hypothesis
- B. Relative Income Hypothesis
- C. Life Cycle Hypothesis
- D. Permanent Income Hypothesis Discuss
- 7. National Income of India is compiled by
Options- A. Finance Commission
- B. Indian Statistical Institute
- C. National Development Council
- D. Central Statistical Organization Discuss
- 8. Backward bending supply curve belongs to which market?
Options- A. Capital
- B. Labour
- C. Money
- D. Inventories Discuss
- 9. If a budget is defeated in the legislature of a state then
Options- A. The Finance Minister alone has to resign
- B. The Finance Minister concerned has to be suspended
- C. The council of Ministers along with the Chief Minister has to resign
- D. Reelection have to be ordered Discuss
- 10. In terms of economics, if it is possible to make someone betteroff without making someone worseoff, then the situation is
Options- A. Inefficient
- B. Efficient
- C. Optimal
- D. Paretosuperior Discuss
Indian Economy problems
Search Results
Correct Answer: upward sloping to the right
Explanation:
Although demand curves are typically downward sloping to reflect that consumers? utility for a good diminishes with increased consumption, firm supply curves are generally upward sloping.The upward sloping character reflects that firms will be willing to increase production in response to a higher market price because the higher price may make additional production profitable.
Correct Answer: upward sloping to the right
Explanation:
Although demand curves are typically downward sloping to reflect that consumers? utility for a good diminishes with increased consumption, firm supply curves are generally upward sloping.The upward sloping character reflects that firms will be willing to increase production in response to a higher market price because the higher price may make additional production profitable.
Correct Answer: 1, 2, 3 and 4
Explanation:
Joint stock company is a voluntary association of individuals for profit, having a capital divided into transferable shares, the ownership of which is the condition of membership.
The definition of a joint stock company highlights the following features of a company.
Separate legal entity:From the day of its incorporation, a company acquires an identity, distinct from its members. Its assets and liabilities are separate from those of its owners. The law does not recognise the business and owners to be one and the same.
The management and control of the affairs of the company is undertaken by the Board of Directors, which appoints the top management officials for running the business. The directors hold a position of immense significance as they are directly accountable to the shareholders for the working of the company. The shareholders, however, do not have the right to be involved in the day-to-day running of the business. The liability of the members is limited to the extent of the capital contributed by them in a company
The risk of losses in a company is borne by all the shareholders. This is unlike the case of sole proprietorship or partnership firm where one or few persons respectively bear the losses.
Correct Answer: 1 and 2
Explanation:
The indifference curves cannot intersect each other.
Higher indifference curve represents a higher level of satisfaction because higher IC means a bundle consisting more of both the goods or same quantity of one good n more quantity of the other good .Hence statement 2 is correct and 3 is incorrect.
Indifference curves is convex to the point of origin because of diminishing Marginal Rate of Substitution.
Correct Answer: When total utility is maximum,marginal and average utility are equal to each other.
Explanation:
Total utility -It is total psychological satisfaction which a consumer derives from the consumption of a commodity is known as total utility
Marginal utility -It is anaddition made in total utility by consuming and additional unit of a commodity is known as marginal utility.
?When marginal utility is positive,total utility increases
?When marginal utility is zero,total utility is at maximum
?When marginal utility is negative,total utility decreases
Correct Answer: Life Cycle Hypothesis
Explanation:
The life-cycle theory of consumption, popularly known as life-cycle hypothesis,' was developed by Ando and Modigliani" in the early 1960s.
The life-cycle hypothesis postulates that individual consumption in any time period depends on
(i) resources available to the individual,
(ii) the rate of return on his capital, and
(iii) the age of the individual.
The resources available to an individual consist of his existing net wealth and the present value of all his current and future labour incomes. According to the life-cycle hypothesis, a rational consumer plans consumption on the basis of all his resources and allocates his income to consumption over time so that he maximizes his total utility over his life time.
Correct Answer: Central Statistical Organization
Correct Answer: Money
Correct Answer: The council of Ministers along with the Chief Minister has to resign
Correct Answer: Paretosuperior
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