ABOUT ME

Akash Singh Yadav

MBA In Finance AND Marketing with 84%
Qualified Continuously 3 TIMES UGC NET AND JRF
Qualified FMS IIT BHU PhD interview 2019
Qualified IIM Kashipur Academic assistant in finance
Pursuing PhD in Finance and accounting , IIT Kharagpur
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 Question :-1 4

Match List – I with List – II and select the correct code for the answer:
List – I List – II
(a) Cross elasticity is zero (I) Price = AVC
(b) Shut-down point (ii) Two commodities are independent
(c) Slutsky theorem (iii) Transformation line
(d) Production Possibility Curve (iv) Substitution effect
Codes:
(a) (b) (c) (d)
(A) (ii) (iv) (I) (iii)
(B) (iii) (ii) (iv) (I)
(C) (I) (iii) (ii) (iv)
(D) (ii) (I) (iv) (iii)
 Question :-2 5

Match the items in List – I with those in List – II and select the correct code for the answer:
List – I List – II
(a) Monopoly (i) Price Taker
(b) Monopolistic competition (ii) Homogeneous product’s price maker
(c) Perfect competition (iii) Heterogeneous product
(d) Oligopoly (iv) Price Rigidity
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (i) (ii) (iv) (iii)
(C) (iii) (iv) (ii) (i)
(D) (iv) (i) (iii) (ii)
 Question :-3 6

List – I List – II
(a) Contraction of Demand (i) Non-Price change effect
(b) Decrease in Demand (ii) Demand curve remains the same
(c) Increase in Demand (iii) Price change effect
(d) Expansion of Demand (iv) Shifts the Demand curve
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (iii) (ii) (i)
(C) (i) (ii) (iii) (iv)
(D) (ii) (iv) (i) (iii)
 Question :-4 7

Match the items of List-I with the items of List-II and select the correct
answer.
List – I List – II
(a) Indifference Curve (i) Slopes downward to the right
(b) Demand Curve (ii) P=AR=MR=d
(c) Perfect Competition (iii) Oligopoly
(d) Price Leadership (iv) Convex to the origin
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iii) (iv) (i) (ii)
(C) (iv) (i) (ii) (iii)
(D) (i) (ii) (iii) (iv)
 Question :-5 8

Which of the following refers to Perfect Competition?

(I) There are restrictions on buyers and sellers
(ii) There are no restrictions on movement of goods
(iii) There are no restrictions on factors of production
Correct one is
(A) only (I) and (ii)
(B) only (ii) and (iii)
(C) only (I) and (iii)
(D) only (I)
 Question :-6 9

Total Revenue (TR) function and the Total Cost (TC)

function of a perfectly competitive market firm are as
follows:
TR = 480 Q – 8 Q2
TC = 400 + 8 Q2
The profit maximizing output would be:
(A) 60
(B) 15
(C) 50
(D) None of the above
 Question :-7 10

Which of the following statements is true?

(A) In case of inferior goods, the income effect is
negative, although the substitution effect is positive.
(B) In inferior goods, the income and substitution
effects are positive.
(C) In inferior goods, the income and substitution
effects are negative.
(D) In case of inferior goods, the income effect is
positive although the substitution effect is negative.
 Question :-8 11

Match the items of List-I with the items of List-II and select the correct
answer.
List – I List – II
(a) Economic profit (i) Total Revenue Explicit cost
(b) Accounting profit (ii) Buyers and Sellers exchanging
(c) Collusion/ Cartel (iii) Total Revenue – Total cost
(d) Market (iv) Oligopoly
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iv) (iii) (ii) (i)
(D) (ii) (iv) (i) (iii)
 Question :-9 12

Match the items of List-I and items of List-II and select the correct code for
the answer.
List – I List – II
(a) Utilitarian Approach (i) Marginal Rate of Substitution
(b) Ordinal Approach (ii) Budget line & Indifference Curve
(c) Price- Consumption Curve (iii) U=f (x, y)
(d) Consumer Equilibrium (iv) MRSxy = MRSyx
Codes:
(a) (b) (c) (d)
(A) (i) (iv) (iii) (ii)
(B) (ii) (iii) (iv) (i)
(C) (iii) (i) (ii) (iv)
(D) (iv) (ii) (i) (iii)
Answer: (C)
 Question :-10 13

GDP at factor cost is

(A) P (Q) + P (S)

(B) GDP- IT- S
(C) GDP + DT +S
(D) GDP- DT + S
 Question :-11 14

A monopolist has control over the price he

charges for his product. He will be able to
maximize his profit by
A. Lowering the price, if the demand curve is elastic
B. Raising the price, if the demand curve is elastic
C. Lowering the price, if the demand curve is inelastic
D. None of the above is applicable
 Question :-12 15

In marginal costing, contribution is

equal to
(A) Sales – Fixed cost
(B) Sales – Variable cost
(C) Sales – Profit
(D) Sales – Variable Cost + Fixed cost
 Question :-13 16

Cross elasticity of complementary goods is

A. Negative
B. High
C. Zero
D. Infinite
 Question :-14 17

When average cost is declining

(A) Marginal cost must be declining.
(B) Marginal cost must be above average cost.
(C) Marginal cost must be below average cost.
(D) Marginal cost must be rising.
 Question :-15 18

Consider the oligopoly models:

(I) Sweezy’s kinked demand curve model
(ii) Newman and Morgenstern Game Theory model
(iii) Cournal’s duopoly model
(iv) Baumal’s sales maximization model
Arrange them in correct sequence as per order of evolution.
Codes :
(A) (iv), (iii), (ii), (I)
(B) (ii), (I), (iii), (iv)
(C) (iii), (I), (ii), (iv)
(D) (I), (iii), (ii), (iv)
 Question :-16 19

Price, Marginal Revenue and Elasticity are

related to each other. When e = 1, then:
(A) MR > 0
(B) MR < 0
(C) MR = 0
(D) MR = 1
 Question :-17 20

Economies of Scale means

A. Reductions in unit cost of production

B. Reductions in unit cost of distribution

C. Addition to the unit cost of production

D. Reduction in the total cost of production

 Question :-18 21

‘Kinked’ demand curve is related with

(A) Monopoly
(B) Discriminating monopoly
(C) Oligopoly
(D) Perfect competition
 Question :-19 22

Price taker firms

A. Do not advertise, because most advertising is wasteful
B. Advertise to increase the demand for their product
C. Do not advertise because they can sell as much as they want at
the current price
D. Who advertise will get more profits than those who do not
 Question :-20 23

If price of any commodity decreases by 20% and

the demand for that commodity increases by
40%, then elasticity of demand would be
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Unit elastic
(D) Highly elastic
 Question :-21 24

Which one is not the main objective of fiscal policy of India?

(A) To increase liquidity in the economy.
(B) To promote price stability
(C) To minimize the inequalities of income and wealth
(D) To promote employment opportunities.
 Question :-22 25

If two commodities are complementary, then a rise in the price of

one commodity will induce
(A) A rise in the price of the other commodity
(B) An upward shift of demand curve
(C) No shift in demand for the other commodity
(D) A backward shift in demand for the other commodity
 Question :-23 26

Match List – I with List – II and select the correct answer using the codes
given below the lists:
List – I List – II
a. Cost Function 1. Kinky Demand Curve
b. Supply Function 2. Isoquants
c. Production Function 3. Engineering Method
d. Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4
 Question :-24 27

Which kind of economics explains the

phenomenon of cause and effect
relationship?
(A) Normative
(B) Positive
(C) Micro
(D) Macro
 Question :-25 28

Assertion (A): The demand curve has negative

slope showing inverse relationship between price
and the quantity demanded.
Reason (R): This applies only to Giffen goods.
Codes:
(A) Both (A) and (R) are true.
(B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true.
(D) Both (A) and (R) are false.
 Question :26 29

Business Economics is a subject which

(A) Studies economic relationships
(B) Studies economic activities at the
aggregate level
(C) Deals with the tools of economics
used for decision making in business
(D) Studies optimum allocation of limited
resources
 Question :-27 30

In perfect competition, the demand

curve of a firm is
(A) Vertical
(B) Horizontal
(C) Positively sloped
(D) Negatively sloped
 Question :-28 31

Giffen goods are those goods

(A) For which demand increases as price decreases
(B) Which is in short supply?
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation?
 Question :-29 32

A commodity is used for multiple purposes, and

then the demand for it is known as
(A) Joint Demand
(B) Composite Demand
(C) Direct Demand
(D) Autonomous Demand
 Question :-30 33

The consumer is said to be in equilibrium when he plans his expenditure on x, y and z

commodities in such a way that he ultimately attains:
(A) MUx = MUy = Mz
(B) MUx / Px = MUy / Py= MUz / Pz
(C) MUx / Px = MUy / Py = MUz / Pz = MUm
(D) MUx / Px < MUy / Py < MUz / Pz < MUm

If you have $10 and apples cost $1 and

oranges cost $2
 Question :-31 34

The opportunity cost is a term which describes

(A) A bargain price for a factor of production.
(B) Production cost related at the optimum level
of production.
(C) Average variable cost.
(D) The loss of the reward in the next best use
of that resource.
 Question :-32 35

An appropriate pricing strategy for a new product to be

introduced in the market will be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
 Question :-33 36

Normally Demand curve slopes

(A) Upward
(B) Downward
(C) Horizontal
(D) Vertical
 Question :-34 37

From the following identify one which is not a

property of Indifference curve?
(A) Indifference curves are downward sloping.
(B) Indifference curves are concave to the
origin.
(C) Indifference curves are convex to the origin.
(D) Indifference curves do not intersect each
other.
 Question :-35 38

The main difference between marginal costing and

absorption costing lies in the treatment of
(A) Direct cost
(B) Fixed overhead
(C) Variable overhead
(D) Semi-variable overhead
 Question :-36 39

Statement I: Demand for a commodity refers to quantity of

the commodity demanded at a certain price during any
particular period of time.
Statement II: Contraction of demand is the result of
increase in the price of the goods concerned.
(A) Both I & II are correct.
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
(D) II is correct and I is incorrect.
 Question :-37 40

In which one of the following market

situations the practice of price rigidity is
found?
(A) Perfectly competitive market
(B) Monopolistic competitive market
(C) Oligopoly market
(D) Discriminating monopoly market
 Question :-38 41

Which is the method applied for measuring GNP?

(A) Income method
(B) Expenditure method
(C) Value Added method
(D) All of the above
 Question :-39 42

When the demand curve is relatively highly

elastic, the marginal revenue is
(A) Zero
(B) Unity
(C) Positive
(D) Negative
 Question :-40 43

Find the correct matching between items of List-I and the items of List-II.
List – I List – II
(a) Increase in demand (i) Leftward movement along the demand curve.
(b) Contraction of demand (ii) Rightward shift of the demand curve.
(c) Cross demand (iii) Demand of more than one commodity to satisfy one
specific want.
(d) Joint demand (iv) Demand of one commodity with changes in the prices of
another related commodity
Codes:
(i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (b) (a) (c) (d)
(D) (a) (b) (d) (c)
 Question :-41 44

A market structure which consists of one buyer

and one seller is referred as
(A) Monopsony
(B) Bilateral monopoly
(C) Monopoly
(D) Duopoly
 Question :-42 45

Match the following:

(i) Wealth of Nations I. Robert Giffen
(ii) Income and Substitution effect II. Paul M. Sweezy
(iii) Kinked Demand Curve III. Cobb- Douglas
(iv) Production function IV. Adam Smith
Codes:
(i) (ii) (iii) (iv)
(A) IV II I III
(B) IV I III II
(C) IV II III I
(D) IV I II III
 Question :-43 46

What is the degree of elasticity of demand in case the

demand is represented by a straight line parallel to the x-
axis?
(A) e > 1
(B) e = 0
(C) e = ∝
(D) e < 1
 Question :-44 47

Match the items of List-I and items of List-II and select the correct answer.
List – I List – II
(a) Perfect competition (i) Different prices for the same product
(b) Monopolistic competition (ii) Dominant strategy
(c) Oligopoly (iii) Product differentiation
(d) Discriminating Monopoly (iv) Identical product
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iv) (i) (iii)
(D) (iii) (i) (iv) (ii)
 Question :-45 48

According to the Law of Variable Proportions, the second stage of production ends when
(A) Marginal productivity of the variable input becomes maximum.
(B) Both marginal productivity and average productivity of the variable input are equal.
(C) Marginal productivity of the variable input becomes zero and average productivity is positive.
(D) Marginal productivity of the variable input is negative but average productivity is positive.
 Question :-46 49

There is no exceptions to the law of

demand in the case of
(A) Giffen goods
(B) Normal goods
(C) Articles of conspicuous consumption
(D) Ignorance of the buyer
 Question :-47 50

A measure of the responsiveness of quantity

demanded to changes in the price of a related
good is known as
(A) Cross Elasticity of Demand
(B) Substitution Elasticity of Demand
(C) Complementary Elasticity of Demand
(D) Price Elasticity of Demand
 Question :-48 51

Assertion (A): Business Economics is tool centric

facilitating decision making in business.
Reason (R): It provides an analytical understanding of
economic activities.
Codes:
(A) Both (A) and (R) are not correct.
(B) Both (A) and (R) are correct.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
 Question :-49 52

Which one of the following is not the basic assumption of

Cardinal Utility analysis?
(A) Rationality of Consumer.
(B) Utility cardinally measurable.
(C) Diminishing marginal utility of money.
(D) Hypothesis of independent utilities.
 Question :-50 53

Which one of the following is not a property of

indifference curve?
(A) Negatively sloping.
(B) Convex to the point of origin.
(C) Indifference curves necessarily have to be
parallel.
(D) Two indifference curves do not intersect each
other.
 Question :-51 54

The elasticity of demand is greater than unity,

when
(A) Percentage change in demand is equal to the
percentage change in price.
(B) Percentage change in demand is more than
the percentage change in price.
(C) Percentage change in demand is less than
the percentage change in price.
(D) There is change in price.
 Question :-52 55

GDP includes which of the following measures?

(A) The size of a population that must share a given output
within one year.
(B) The negative externalities of the production process of a
nation within one year.
(C) The total monetary value of all final goods and services
produced within a nation within one year.
(D) The total monetary value of goods and services including
barter transactions within a nation in one year.
 Question :-53 56

Match the following:

List – I List – II
(a) The producers will offer more of a product at a higher price. (i) Market in equilibrium
(b) The quantum that producers want to sell is equal to the quantum that consumers want to
buy. (ii) Law of supply
(c) The sensitivity of consumers to price changes. (iii) Co-efficient of price elasticity of demand.
(d) Percentage change in quantity demanded to percentage change in price. (iv) Price elasticity of demand
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (iv) (i) (ii) (iii)
(C) (ii) (iv) (iii) (i)
(D) (ii) (i) (iv) (iii)
 Question :-54 57

Statement I: The slope of an indifference curve is the Marginal Rate of Substitution in

the consumption (MRSc), which is increasing.
Statement II: The slope of the budget line is ratio of the prices of two goods and is the
Marginal Rate of Substitution in exchange (MRSe)
(A) Statement I and II are correct.
(B) Statement I is correct, but II is incorrect.
(C) Statements I and II are incorrect.
(D) Statement I is not correct, but II is correct.
 Question :-55 58

If the minimum stock level and average stock level of material A are 4000
and 9000 units respectively, what is the Reorder quantity?
(A) 8000 units
(B) 10,000 units
(C) 11,000 units
(D) 9,000 units
 59

JOIN TELEGRAM CHANNEL FOR QUIZ AND NOTES IN PAPER 1 ,COMMERCE

AND MANAGEMENT by search in telegram :-

ugc_net_management_commerce

AKASHYADAVJRF
UGC NET AND JRF CLASSES
BY AKASH