demand & supply, profit loss, inflation & price index section 3 MCQ Questions & Answers Detailed Explanation

Question : 1

A market in which there are large numbers of sellers of a particular product, but each seller sells somewhat differentiated but close products is termed as

a) Monopolistic competition

b) Perfect competition

c) Monopoly

d) Oligopoly

Question : 2

Which one of the following causes the condition in which prices increase rapidly as a currency loses its value ?

a) Stealth inflation

b) Stagflation

c) Conflation

d) Hyper inflation

Question : 3

Match List-I with List-II and select answers using the codes given below in the lists.

a) 2 1 4 3

b) 2 1 3 4

c) 1 2 3 4

d) 1 2 4 3

Question : 4

The way total output changes due to change in all inputs in same proportion is known as law of

a) Increasing returns

b) Returns to scale

c) Diminishing returns

d) Constant returns

Question : 5

Consider the following statements and state which is/are correct?

1. The sub-prime crisis which hit the U.S. economy was caused by sudden increase in oil prices.
2. The crisis led to default in home loan repayment.
3. It led to failure of some U.S. Banks.
4. Sub-prime crisis caused crash in Indian stock market.

a) Only 2, 3 and 4

b) 1, 2, 3 and 4

c) Only 1

d) Only 2 and 4

Question : 6

The average fixed cost curve will always be

a) a downward sloping convex to the origin curve

b) a downward sloping straight line

c) a rectangular hyperbola

d) a U-shaped curve