demand & supply, profit loss, inflation & price index section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 1 [CDS-2013-II]

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

Question : 2 [UPPCS (Pre) 2010]

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 : 3 [CDS-2014-II]

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 : 4

Economic growth is usually coupled with

a) Hyper inflation

b) Deflation

c) Inflation

d) Stagflation

Question : 5 [CDS-2014-II]

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