GK - Economics Test

GK - Economics Test - 01

1. VAT scheme is ex~ected to

a. raise the prices of foreign goods

b. raise the prices of luxury goods

c. lower the prices of goods of I everyday use

d. avoid repeated payment of duty from the raw materials stage to the final product and thus reduce the burden of duty on the final product

2. A firm is said to be of optimum size when

a. average total cost is at a minimum

b. marginal cost is at a minimum

c. marginal cost is equal to marginal revenue

d. the firm is maximising its profit

3. The open market operations refer to the sale and purchase by the RBI of

c. government securities

4. Expenditure on which of the following is, not considered investment in the theory of income determination ?

a. Stocks, or shkres. in a joint-stock company

b. Factory construction

c. Increase in stocks of unsold goods

5. Which of the following holders fo a company's issued capital is likely to receive the biggest increase in income if there is a substantial increase in profits ?

a. A 10 percent cumulative preference shareholder

b. An 11 percent preference shareholder

c. A 12 percent debenture holder

d. An ordinary shareholder

6. The elasticity of a straight-line demand curve

a. may have varying values along its length

b. must be equal to zero

c. must be equal to infinity

d. must be equal to one

7. Disguised unemployment is the prominent feature of

8. Total revenue of, a firm is ~I~Ixin_ium when marginal revenue

b. is greater than zero

9. Select from the following list the costs which are most likely to vary with the output of a car manufacturer during a period of a year.

a. The salary of the managing director

b. The rent of the factory

c. The wages of the workers in the paint shop

d. The interest paid on a loan used for general purposes

10. Under perfect competition and liorl run, a firm would continue to produce, provided

a. it is able to recover its variable costs

b. it is able to recover its total cost

c. its loss does not exceed a specified amount

d. it is able to recover its fixed costs

Greatest Fashion Models

Miranda Kerr

Miranda May Kerr was born in Sydney and raised in the small town of Gunnedah to John and Therese Kerr. Kerrs paternal grandmother lived on a farm, where she raced motorbikes and rode horses. Her parents later moved the family to Brisbane when she and her younger brother Matthew were teenagers.

General Knowledge

Greatest Fashion Models

Miranda Kerr