141. The demand for a normal good increases with ________ in the consumer’s income.
1. Increase
2. Decrease
3. Constant
4. Double
Option “A” is correct The demand for a normal good increases with increase in the consumer’s income.
142. Short run marginal cost curve cuts the average variable cost curve from _______ at the minimum point of average variable cost.
1. Top
2. Below
3. Right
4. Left
Option “B” is correct Short run marginal cost curve cuts the average variable cost curve from below at the minimum point of average variable cost.
143. The short run average cost curve is ____ shaped.
1. U
2. V
3. X
4. W
Option “A” is correct The short run average cost curve is U shaped.
144. The supply-side economics lays greater emphasis on ______.
1. Producer
2. Global economy
3. Consumer
4. Middle Man
Option “A” is correct Supply-side economics is the theory that says increased production drives economic growth. So, the supply-side economics lays greater emphasis on Producer.The factor of production are capital, labour, entrepreneurship, and land.
145. The founding father of “Theory of bureaucracy” was?
1. F. W. Taylor
2. Max Weber
3. Elton Mayo
4. Herbert Simon
Option “B” is correct The Bureaucratic Theory is related to the structure and administrative process of the organization and is given by Max Weber, who is regarded as the father of bureaucracy.
146. The main effect of Direct Taxes is on-
1. Food prices
2. Consumer goods
3. Capital goods
4. Income
Option “D” is correct Direct tax is a type of tax where the incidence and impact of taxation fall on the same entity income.
147. If price of an article decreases from P1 to Rs 25, quantity demanded increases from 900 units to 1200 units. If point elasticity of demand is 2 find P1?
1. Rs. 20
2. Rs. 30
3. Rs. 35
4. Rs. 15
Option “B” is correct Elasticity= (ΔQ/ΔP)×(P/Q) where ΔQ is change in Quantity and ΔP is change in Price.
148. A company faces a -2.5 price elasticity of demand for its product. It is presently selling 10,000 units/month. If it wants to increase quantity sold by 6%, it must lower its price by –
1. 3.50%
2. 15%
3. 2.50%
4. 2.4%
Option “D” is correct ELASTICITY=(%change in the quantity) / (%change in the price)
149. In 2015 the nominal rate of interest in country was 6%, and the inflation rate then was 1.5%. So real rate of interest in 2015 was
1. 7.5%
2. 4.5%
3. 4%
4. 0.25%
Option “B” is correct Real interest rate is approximately the nominal interest rate minus the inflation rate.
150. If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.
Option “B” is correct If the Monopoly firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.
