Economics - Study Mode

[#461] Micro-economic theory studies how a free-enterprise economy determines
Correct Answer

(D) all of the above

[#462] Select the techniques of monetary control adopted by RBI from the following: (i) Cash Reserve Ratio (ii) Statutory Liquidity Ratio (iii) Bank Rate (iv) Currency Rate
Correct Answer

(D) (i), (ii), (iii)

[#463] With regard to business cycles which of the following is not true?
Correct Answer

(C) According to Keynes, "The trade cycle is a purely monetary phenomenon"

[#464] Total production will be maximum when
Correct Answer

(C) marginal production is zero

[#465] The most efficient scale of production of a firm is where
Correct Answer

(A) LAC is minimum

Explanation

Solution: The most efficient scale of production of a firm is where LAC is minimum. LAC at the efficient scale of production is thus the minimum average cost.