Economics - Study Mode

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[#506] The basic nature of average fixed cost is that it

(A) increases as output increases

(B) remain same at all levels of output

(C) decreases with increase in output

(D) All of the above

Correct Answer

[#507] Which of the following statement is incorrect?

Correct Answer

(D) Arc elasticity measures the average elasticity at a point on the arc of the demand curve
(H) The commodity is backbone of the United States money supply
(J) If supply increases and demand decreases, equilibrium price will fall
(O) Itis always beneficial for a firm in a perfectly competitive market to discriminate prices

[#508] Which of the following is not the main objective of "Fiscal Policy of India"?

(A) To increase liquidity in economy

(B) To promote price stability

(C) To minimize the in-equality in income and wealth

(D) To promote employment opportunities

Correct Answer

(A) To increase liquidity in economy

[#509] A group of firms that gets together to make price and output decisions is called

(A) a non-collusive oligopoly

(B) price leadership

(C) a cartel

(D) a concentrated industry

Correct Answer

[#510] Which of the following is not the feature of monopolistic competition?

(A) Fairly large number of firms

(B) Co-existence of efficient and inefficient firms

(C) Product homogenity

(D) Independent price output policy