Economics - Study Mode

[#716] Under ______ market condition, firms make normal profits in the long run.
Correct Answer

(A) Perfect competition

Explanation

Solution: Under Perfect competition market condition, firms make normal profits in the long run. In sum, in the long-run, companies that are engaged in a perfectly competitive market earn zero economic profits.

[#717] Larger production of ___ goods would lead to higher production in future
Correct Answer

(B) Capital goods

Explanation

Solution: Larger production of Capital goods goods would lead to higher production in future. If investment in capital good increases ,in turn it further increases the production of consumer goods in the long run. So, if an economy is investing more in capital goods, it shows signs of growth in near future, an increase in GDP.

[#718] Economic survey is published by
Correct Answer

(A) Ministry of Finance

Explanation

Solution: The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget.It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry's view on the annual economic development of the country.

[#719] When demand for the product increases in the same proportion in which income increases, income elasticity of demand will be equal to
Correct Answer

(A) unity

[#720] When demand curve is rectangular Hyperbola, the elasticity of demand will be
Correct Answer

(B) Unit elastic