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Indian Economy Questions for SSC CGL Tier 1 2018

Indian Economy Questions for SSC CGL Tier 1 2018

Indian Economy Questions for SSC CGL Tier 1 2018

Q1. The minimum possible prize which just covers the marginal cost of the product paid by the costumer is called

(a) market cost

(b) nominal cost

(c) opportunity cost

(d) prevailing cost

Q2. At the initial price level, the supply curve of a constant cost industry in the long run is a 

(a) straight line parallel to the quantity axis

(b) straight line parallel to the price axis

(c) downward sloping curve

(d) upward sloping curve

Q3. An increasing cost industry’s long run supply curve has a

(a) negative slope

(b) positive slope

(c) zero slope

(d) none of the above

Q4. Extra payment made to the more efficient resources over and above their transfer earning are called

(a) wages

(b) profit

(c) rent

(d) surplus earnings

Q5. A firm which will be the first to leave the industry if price falls is called

(a) marginal firm

(b) average firm

(c) weak firm

(d) none of the above

Q6. The marginal firm is the ——— cost firm which earns ——- profit.

(a) highest, abnormal

(b) lowest, normal

(c) highest, normal

(d) lowest, abnormal

Q7. In long run competitive equilibrium under differential cost conditions, the intra-marginal firm earns

(a) normal profit

(b) more than normal profit

(c) adnormal profit

(d) profit less than normal profit

Indian Economy Questions
Q8. The minimum price at which the sellers refuse to supply the good at all and store it with themselvrs is known as

(a) normal price

(b) market price

(c) reserve price

(d) prevailing price

Q9. Reserve price of a good depends on

(a) sellers’ preference of liquidity

(b) costs of storage

(c) durability of the good

(d) all of the above

Q10. The size of monopolist’s plant and the degree of utilization of any given plant size, depend entirely on the

(a) factor price

(b) price of the good

(c) market demand

(d) market supply

Q11. In price discrimination, a monopolist lowers the price at the market where there is

(a) higher elasticity

(b) lower elasticity

(c) expensive factor price

(d) none of the above

Q12. Which of the following is true about a monopolist at equilibrium output level?

(a) marginal cost is equal to marginal revenue

(b) price is equal to average revenue

(c) average revenue is greater than marginal revenue

(d) all of the above

Q13. Given the cost conditions, output is ————- and price —————- under monopoly as compared to perfect competition.

(a) higher, same

(b) lower higher

(c) higher, lower

(d) same, lower

Q14. Which of the following is the factor responsible for price discrimination?

(a) different price-elasticities in different markets

(b) control over supply

(c) possible to segregate market

(d) all of the above

Q15. When the monopolist is able to sell each separate unit of the output a different price, it is called price discrimination of

(a) first degree

(b) second degree

(c) third degree

(d) none of the above

Indian Economy Questions

Explanations: 

Ans 1. (c) The minimum possible prize which just covers the marginal cost of the product paid by the costumer is called opportunity cost.

Ans 2. (a) At the initial price level, the supply curve of a constant cost industry in the long run is a straight line parallel to the quantity axis.

Ans 3. (b) An increasing cost industry’s long run supply curve has a positive slope.

Ans 4. (c) Extra payment made to the more efficient resources over and above their transfer earning are called rent.

Ans 5. (a) A firm which will be the first to leave the industry if price falls is called marginal firm.

 Ans 6. (c) The marginal firm is the highest cost firm which earns normal profit.

Ans 7. (b) In long run competitive equilibrium under differential cost conditions, the intra-marginal firm earns more than normal profit.

Ans 8. (c) The minimum price at which the sellers refuse to supply the good at all and store it with themselvrs is known as reserve price.

Ans 9. (d) Reserve price of a good depends on sellers’ preference of liquidity, costs of storage and durability of the good.

Ans 10. (c) The size of monopolist’s plant and the degree of utilization of any given plant size, depend entirely on the market demand.

Ans 11. (a) In price discrimination, a monopolist lowers the price at the market where there is higher elasticity .

Ans 12. (d) A monopolist at equilibrium output level  marginal cost is equal to marginal revenue, price is equal to average revenue and average revenue is greater than marginal revenue.

Ans 13. (b) Given the cost conditions, output is lower and price higher under monopoly as compared to perfect competition.

Ans 14. (d) The factor responsible for price discrimination are different price-elasticities in different markets, control over supply and possible to segregate market.

Ans 15. (a) When the monopolist is able to sell each separate unit of the output a different price, it is called price discrimination of First degree.

 

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