Economics - Study Mode
[#1251] Which of the following is correct? (i) National income = gross national product - Depreciation (ii) National income = Rent + Wages + Salary + interest + profit (iii) Variable cost Average variable cost = $$frac{{{ ext{Variable cost}}}}{{{ ext{Production}}}}$$ Select your answer
Correct Answer
(D) (i), (ii), (iii)
[#1252] According to the Kaldor-Hicks compensation criterion, a change in economic policy leads to an improvement in social welfare, if
Correct Answer
(C) the gainers can compensate the losers for their loss and still remain better-off themselves than before
[#1253] In the case consumers equilibrium to be explained through an ordinal approach, when there are two commodities with their prices given and with limited income of the consumer, the following information is required: I. Price line/budget line II. Indifference map III. Point of tangency between IC and budget line IV. Equality of the slopes of IC and budget line Arrange the information required in the correct sequence and choose the right option from those below
Correct Answer
(B) II, I, IV, III
[#1254] In a perfectly competitive market, a firm in the long run operates at the level of output where:
Correct Answer
(D) AR = MR = AC = MC
[#1255] In case, law of constant returns is applicable,
Correct Answer
(C) marginal and average product will be equal