Test: Business Economics - 5

The average profit is the difference between

Consider the following and decide which, if any, economy is without scarcity

Which of the following is/are implicit cost(s) of production?

Marginal revenue will be negative if elasticity of demand is

Q. ​What is the total output when 2 hours of labour are employed?

Which of the following concepts of budget deficit has become practically redundant in India?

The law of variable proportions come into being when

After reaching saturation point, consumption of additional units of the commodity causes

Which of the following statements would you consider to be a normative one?

Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:

Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of guns

Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question:

Q. According to table, the opportunity cost of increasing gun`s production from 20 to 30 units is equal to

Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question:

Q. Point D is efficient while point H (30 guns and 45 loaves of bread) is inefficient. Why?

__________ pair of commodities is an example of substitutes.

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

The price elasticity of demand when fresh milk's price increases from Rs. 20 per litre to Rs. 30 per litre is equal to

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

The cross elasticity of monthly demand for powdered milk when the price of fresh milk increases from Rs. 20 to Rs. 30 per litre is equal to

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk was sold per month. After some time, the price was raised to Rs. 30 per litre.

Following the price rise:
Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

The cross elasticity of monthly demand for cereal when the price of fresh milk increases from Rs. 20 to Rs. 30 is equal to

The main objective of the World Trade Organisation is to secure among others

Money includes

If R point bisects the demand curve in two equal parts, then elasticity at R equals

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q. What is the total variable cost when 60 burgers are produced?

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q. Between 10 to 20 burgers, what is the marginal cost (per burger)?

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q. What is the average fixed cost when 20 burgers are produced?

Bozzo's burgers is a small restaurant and a price taker. The table below provides the data of Bozzo's output and costs in rupees.

Q.  If burgers sell for Rs. 14 each, what is Bozzo`s profit maximizing level of output

The vertical difference between TVC and TC is equal to

If the railways are making losses on passenger traffic they should lower their fares. The suggested remedy would only work if the demand for rail travel had a price elasticity of

The economic analysis expects the consumer to behave in a manner which is

Which of the following is not an objective of Fiscal policy?

In Econoville, there was one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk was sold per month. After some time, the price was raised to Rs. 30 per litre.

Following the price rise,

• Only 200 litres of milk was sold every month.
• The number of boxes of cereal customers bought went down from 280 to 240.
• The number of packets of powdered milk customers bought went up from 90 to 220 per month.

Suppose income of the residents of Econoville increases by 50% and the quantity of fresh milk demanded increases by 30%. What is the income elasticity of demand for fresh milk?

The AR curve and industry demand curve are the same

Which one of the following is the best example of agreement between oligopolists?

Birth rate and death rate are measured as per

Marginal utility approach to demand was given by

Excess capacity is not found under

___________ measure usually gives the lowest estimate of unemployment especially for poor economy.

Directions: Read the following paragraph and answer the question:

In the Monetary Policy announced for the year 2006-07 the following announcements have been made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressure seen during the last 4 months of 2005-06 have eased off considerably.

In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?

Suppose that a sole proprietorship is earning total revenues of Rs. 2,00,000 and is incurring explicit costs of Rs. 1,50,000. If the owner could work for another company for Rs. 60,000 a year, we would conclude that

Directions: Consider the given data and calculate the following.

​Q. What is the marginal product of the third hour of labour?

Consumer surplus is highest in the case of

__________ is not a direct tax.

Price taker firms

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

We can say that fresh milk in economics sense is a/an

Which of the following is not, by definition, equal to National Income?

___________ has been founded to act as permanent watchdog on the international trade.

Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre. At this price, 400 litres of milk was sold per month. After some time, the price was raised to Rs. 30 per litre.

This rise in price led to the following:
Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.

Q. What can be said about the price elasticity of demand for fresh milk?

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output, then this is a case of

When the price of a substitute of X commodity falls, the demand for X 

At the point of inflexion, the marginal product is