Economics - Study Mode

[#711] What implication does resource scarcity have for the satisfaction of wants?
Correct Answer

(A) Not all wants can be satisfied

Explanation

Solution: Resource scarcity for the satisfaction of wants implicates that not all wants can be satisfied. The classification of human wants is not a rigid concept.

[#712] Who expressed the view that 'Economics should be neutral between ends'?
Correct Answer

(A) Robbins

Explanation

Solution: Robbins expressed the view that 'Economics should be neutral between ends'. He believes that Economics is concerned merely with the utilization of scarce means far the satisfaction of multiple ends.

[#713] Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness?
Correct Answer

(D) The individual firm is unable to affect market price through its output decisions

Explanation

Solution: The individual firm is unable to affect market price through its output decisions best describes this smallness.

[#714] Which one of the following is true about Planning Commission?
Correct Answer

(C) It is an Advisory Body

Explanation

Solution: Planning Commission is an Advisory Body. The Planning Commission is a non-constitutional and non-statutory body and is responsible to formulate five years plan for social and economic development in India.

[#715] A firm encounters its 'shutdown point' when
Correct Answer

(B) Average variable cost equals price at the profit-maximizing level of output

Explanation

Solution: A firm encounters its 'shutdown point' when average variable cost equals price at the profit-maximizing level of output.