Easy Indian Economics GK Questions and Answers
Under perfect competition, the industry has no excess capacity because each firm produces at its minimum point.
(A) Long run marginal cost curve
(B) Long run average cost curve
(C) Long run average variable cost curve
(D) Long run average income curve
Correct Answer : B
Explanation :
Excess capacity in simple terms is when a firm is producing below it's full production potential. So under perfect competition, all firms produce at minimum point where the long-run average cost curve, marginal revenue, average revenue and horizontal demand curve are tangent.
The horizontal demand curve is :
(A) relatively elastic
(B) perfectly inelastic
(C) perfectly elastic
(D) unit elastic
Correct Answer : D
The measure of the degree of monopoly power of a firm is
(A) in the form of normal profits.
(B) as super ordinary profit
(C) as both normal and supernormal profits
(D) as the selling price of
Correct Answer : B
The supply curve under increasing returns is:
(A) positive slope from left to right
(B) negative slope from left to right
(C) parallel to the volume axis
(D) parallel to the price axis
Correct Answer : A
Production function establishes the relation:
(A) with the cost of production
(B) with investment of cost
(C) with output of input
(D) with the benefit of wage level
Correct Answer : C
Marginal revenue of a monopolist is :
(A) more than the price
(B) equal to the price
(C) less than the price
(D) less than marginal cost
Correct Answer : C
'Consumer dominance' means:
(A) Consumers are free to spend their income as they wish
(B) Consumers have the power to manage the economy
(C) Consumers' expenditure influences the allocation of resources
(D) Consumer goods are free from government control
Correct Answer : A
There is a general law of demand – quantity demanded increases ________
(A) with a fall in price
(B) as the price increases
(C) with fixed price
(D) as utility increases
Correct Answer : D
The cost of advertising is called
(A) implicit cost
(B) surplus cost
(C) fixed cost
(D) selling cost
Correct Answer : D
Explanation :
The cost incurred in advertising is called selling cost.
Does not include the cost of sales
(A) Oligopoly
(B) monopoly
(C) perfect competition
(D) monopolistic competition
Correct Answer : C
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Rajesh Bhatia
A Writer, Teacher and GK Expert. I am an M.A. & M.Ed. in English Literature and Political Science. I am highly keen and passionate about reading Indian History. Also, I like to mentor students about how to prepare for a competitive examination. Share your concerns with me by comment box. Also, you can ask anything at linkedin.com/in/rajesh-bhatia-7395a015b/.
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