Economics - Study Mode

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[#156] Which of the following statement is correct?

Correct Answer

(A) Law of variable proportion will not apply, if there is an improvement in the technology
(F) Contribution margin = sales × p/v ratio
(L) A firm is price taken under perfect competition

[#157] A natural monopoly refers to a monopoly that is defended from the direct competition by

(A) Economies of scale over a broad range of output

(B) Government franchise

(C) Control over vital input

(D) Patent or copyright

Correct Answer

(A) Economies of scale over a broad range of output

[#158] The term optimum allocation on consumer's expenditure on various goods and services is used in

(A) Giffen paradox

(B) Law of demand

(C) Law of diminishing MU

(D) Law of equi-marginal utility

Correct Answer

(D) Law of equi-marginal utility

[#159] Which factor price can become zero?

(A) Interest

(B) Salary of the manager where there are losses

(C) Profit

(D) Wages in depression

Correct Answer

[#160] The wage rate paid by Easy Day producers falls, and at the same time, the price of raw material used in the production of Easy Day rises. You predict that the supply curve of Easy Day will

(A) Surely shift leftward

(B) Surely become steeper

(C) Shift either leftward or rightward

(D) Surely shift rightward