Economics GK Questions Practice Question and Answer

Q:

If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is

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  • 1
    perfectly inelastic
    Correct
    Wrong
  • 2
    elastic
    Correct
    Wrong
  • 3
    perfectly elastic
    Correct
    Wrong
  • 4
    inelastic
    Correct
    Wrong
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Answer : 3. "perfectly elastic "

Q:

The four factors of production are

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  • 1
    land, labour, capital, organisation
    Correct
    Wrong
  • 2
    land, electricity, water, labour
    Correct
    Wrong
  • 3
    labour, capital, land, rainfall
    Correct
    Wrong
  • 4
    labour, climate, land, tools
    Correct
    Wrong
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Answer : 1. "land, labour, capital, organisation"

Q:

The demand for which of the following commodity will not rise in spite of a fall in its price?

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  • 1
    Television
    Correct
    Wrong
  • 2
    Refrigerator
    Correct
    Wrong
  • 3
    Salt
    Correct
    Wrong
  • 4
    Meat
    Correct
    Wrong
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Answer : 3. "Salt "

Q:

“Interest is a reward for parting with liquidity” is according to

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  • 1
    Keynes
    Correct
    Wrong
  • 2
    Marshall
    Correct
    Wrong
  • 3
    Haberler
    Correct
    Wrong
  • 4
    Ohlin
    Correct
    Wrong
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Answer : 1. "Keynes "

Q:

Production function expresses

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  • 1
    technological relationship between physical inputs and output
    Correct
    Wrong
  • 2
    financial relationship between physical inputs and output
    Correct
    Wrong
  • 3
    relationship between finance and technology
    Correct
    Wrong
  • 4
    relationship between factors of production
    Correct
    Wrong
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Answer : 1. "technological relationship between physical inputs and output"

Q:

In the law of demand, the statement “Other things remain constant” means

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  • 1
    income of consumer should not change
    Correct
    Wrong
  • 2
    price of other goods should not change
    Correct
    Wrong
  • 3
    taste of consumer should not change
    Correct
    Wrong
  • 4
    All of the above
    Correct
    Wrong
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Answer : 4. "All of the above"

Q:

One of the essential conditions of Monopolistic competition is

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  • 1
    Many buyers but one seller
    Correct
    Wrong
  • 2
    Price discrimination
    Correct
    Wrong
  • 3
    Product differentiation
    Correct
    Wrong
  • 4
    Homogeneous product
    Correct
    Wrong
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Answer : 3. "Product differentiation "

Q:

The ‘break-even point’ is where

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  • 1
    marginal revenue equals marginal cost
    Correct
    Wrong
  • 2
    average revenue equals average cost
    Correct
    Wrong
  • 3
    total revenue equals total cost
    Correct
    Wrong
  • 4
    None of these
    Correct
    Wrong
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Answer : 2. "average revenue equals average cost"

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