Economics - Study Mode
[#1111] For substitutes, cross-elasticity of demand is
Correct Answer
(A) positive
[#1112] The 'Principle of Equal pay for Equal work' is contained in which Article of the Indian Constitution?
Correct Answer
(D) None of these
[#1113] The economist's objections to monopoly rest on which of the following grounds?
Correct Answer
(D) Both A and B are correct
Explanation
Solution: The economist's objections to monopoly rest on the following grounds that there is a transfer of income from consumers to the monopolist and there is welfare loss as resources tend to be misallocated under monopoly.
[#1114] In which of the following market structure is the degree of control over the price of its product by a firm very large?
Correct Answer
(C) Monopoly
Explanation
Solution: In Monopoly market structure the degree of control over the price of its product by a firm very large. In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power. Consumers do not have any alternative and must pay the price set by the seller.
[#1115] The offer curves introduced by Alfred Marshall, helps us to understand how the ___ is established in international trade.
Correct Answer
(A) Terms of trade
Explanation
Solution: The offer curves introduced by Alfred Marshall, helps us to understand how the terms of trade is established in international trade. An offer curve shows how the volumes traded change when the terms of change.