GK Economics Test 10 GK - Economics Test - 01 Please enter your email: 1. An upward and leftward movement of an upward-sloping supply curve for a commodity could be caused by all of the following, except a rise in production costs a fall in productivity a shift of tastes in favour of the product the imposition of an excise tax 2. The elasticity of a straight-line demand curve must be equal to zero may have varying values along its length must be equal to infinity must be equal to one 3. If the elasticity of demand for a good is equal to (-)2 then a 1 percent price rise will raise the total revenue by 1 percent raise the quantity demanded by 2 percent lower the quantity demanded by 2 percent lower the quantity demanded by 1 percent 4. The slope of an indifference curve represents the marginal rate of substitution between two goods position of consumer equilibrium elasticity of demand for a good ratio of the prices of two goods 5. It will pay a monopolist to cut the price of his product if the demand curve facing him is relatively elastic marginal revenue is greater than marginal cost he is making a loss average total cost is falling 6. An indifference curve for an individual consumer represents graphically the quantities of one good which are equal to quantities of another good the way in which a consumer spends his income on two goods combinations of two goods which have the same marginal utility the possible combination of two goods which he can buy with his income 7. Perfect competition is said to exist if each firm in the industry accepts the market price because it has to firms are not independent of each other the industry consists of a small number of firms the demand curve for the industry is perfectly elastic 8. 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 ? An 11 percent preference shareholder A 10 percent cumulative preference shareholder A 12 percent debenture holder An ordinary shareholder 9. Which of the folowing businesses would probably find it easiest to borrow money from complete strangers ? A private joint stock cornpany A partnership of 50 years’ standing A public joint stock company Any partnership 10. A firm is said to be of optimum size when the firm is maximising its profit marginal cost is at a minimum marginal cost is equal to marginal revenue average total cost is at a minimum Loading … Question 1 of 10 Previous PostGeneral Knowledge 281 Next PostQuantitative Aptitude Test 16
