211. A manufacturer faces price elasticity of demand of a 1.25 for its product. If it lowers its price by 6.4%, the increase in quantity sold will be _____.
Option “C” is correct Elasticity =% Change in quantity/%Change in price 1.25 =X/6.4 X = 6.4*1.25 =8%
212. Calculate the accounting profits for a firm, if its economic profits for the year are Rs 60 crores, total implicit costs are Rs 18.5 crores and total explicit costs are Rs 35 crores?
213. How many key infrastructure sectors are known as Core sector in Indian Economy,used for Index of Industrial Production (IIP) data ?
1. 5
2. 6
3. 7
4. 8
Option “D” is correct The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing. The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
214. Who gave the ‘General Equilibrium Theory’?
1. J. M. Keynes
2. Leon Walras
3. David Ricardo
4. Adam Smith
Option “B” is correct French economist Leon Walras in his pioneering work Elements of Pure Economics in 1874 gave General Equilibrium theory. It attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.
215. What is the accepted average Calorie requirement for rural area in India?
1. 2100
2. 2200
3. 2300
4. 2400
Option “D” is correct The nutritional requirement recommends a national norm of 2,400 kilo calories a day for rural areas and 2,100 calories a day for urban areas, the difference being attributed to the lower rate of physical activity in urban areas.
216. The rate of tax increase as the amount of the tax base increases is called?
Option “B” is correct The rate of tax increase as the amount of the tax base increases is called Progressive tax.
217. Lowering of value of currency relative to a foreign reference currency is called _________.
1. Devaluation
2. Revaluation
3. Down valuation
4. Negative valuation
Option “A” is correct Devaluation is a deliberate downward adjustment to the value of a country’s currency relative to another currency.
218. The best solution for overcoming the evil effects of small and uneconomic holdings is ___________.
1. Urbanization of rural population
2. Using capital intensive technology
3. Co-operative farming
4. Rapid industrialization
Option “C” is correct Co-operative farming is a voluntary organization in which the farmers pool their resources. The object of this organization is to help each other in agriculture for their common interests. It will remove the ill effect of small and uneconomic holding.
219. If tea companies start using mechanised tea leave pickers –
1. more people would want to work as tea leave pickers
2. unemployment of tea leave pickers will decrease
3. more tea will be produced per acre
4. then wages for manual tea leave pickers will fall
Option “D” is correct If tea companies start using mechanised tea leave pickers then wages for manual tea leave pickers will fall.
220. If for a perfectly competitive firm, price is Rs 7.2, output is 4500 units, average variable costs are Rs 1.2, and average total costs are Rs 4. The firm’s profits are equal to
