Economics - Practice Test | ExamPrepSheets

[#951] A point where the budget line is just touching an indifference curve at one point is

(A) The best affordable point

(B) The least affordable point

(C) On the lowest attainable indifference curve

(D) Both B and C are correct

Correct Answer

(A) The best affordable point

[#952] The important organisation of development of small scale industries is

(A) IDBI

(B) EXIM BANK

(C) SIDBI

(D) None of the above

Correct Answer

(C) SIDBI

[#953] Entrepreneurship development program provides

(A) Unemployment

(B) Employment

(C) Dishonesty

(D) Corruption

Correct Answer

(B) Employment

[#954] Under perfect competition, the long run equilibrium of the firm is established at

(A) minimum point of LAC

(B) highest point of LAC

(C) minimum point of SAC

(D) highest point of SAC

Correct Answer

(A) minimum point of LAC

[#955] Which of the following is a producer good?

(A) Pen

(B) Cycle

(C) Mobile phone

(D) Hammer

Correct Answer

(D) Hammer

Explanation

Solution: Hammer is a producer good. A hammer is a durable rival good.

Economics - Study Mode

[#951] A point where the budget line is just touching an indifference curve at one point is

Correct Answer

[#952] The important organisation of development of small scale industries is

Correct Answer

[#953] Entrepreneurship development program provides

Correct Answer

[#954] Under perfect competition, the long run equilibrium of the firm is established at

Correct Answer

[#955] Which of the following is a producer good?

Correct Answer

Explanation