A. usefulness of a commodity
B. the satisfaction which a commodity yields
C. the service which a commodity is capable of rendering
D. None of these
Answer –B. the satisfaction which a commodity yields
Explanation-
32. One of the essential conditions of Monopolistic competition is: [SSC Tax Assistant (Income Tax & Central Excise) 2005]
A. Many buyers but one seller
B. Price discrimination
C. Product differentiation
D. Homogeneous product
Answer –C. Product differentiation
Explanation-
33. Purchasing Power Parity theory is related with:[SSC Section Officer (Commercial Audit) 2007]
A. Interest rate
B. Bank rate
C. Wage rate
D. Exchange rate
Answer –D. Exchange rate
Explanation-
34. If an industry is characterised by economies of scale then:[SSC Section Officer (Audit) 2001]
A. barriers to entry are not very large
B. long run unit costs of production decreases as the quantity the firm produces increases
C. capital requirement are small due to the efficiency of the large scale operation
D. the costs of entry into the market are likely to be substantial
Answer –B. long run unit costs of production decreases as the quantity the firm produces increase
Explanation-
35. When the total product rises at an increasing rate, the ____ [SSC Tax Assistant (Income Tax & Central Excise) 2007]
A. marginal product is zero
B. marginal product is rising
C. marginal product is falling
D. marginal product remains constant
Answer –B. marginal product is rising
Explanation-
36. Equilibrium is a condition that can:[SSC Section Officer (Commercial Audit) 2003]
A. never change
B. change only if some outside factor changes
C. change only if some internal factor changes
D. change only if government policies change
Answer –C. change only if some internal factor changes
Explanation-
37. In the law of demand, the statement “Other things remain constant” means …..[SSC CPO Sub-Inspector 2006]
A. income of consumer should not change
B. price of other goods should not change
C. taste of consumer should not change
D. All of the above
Answer – D. All of the above
Explanation-
38. Division of labour is limited by…..[SSC Combined Matric Level (PRE) 2001]
A. the number of workers
B. hours of work
C. extent of the market
D. working space
Answer –C. extent of the market
Explanation-
39. The relationship between price of a commodity and the demand for it: [SSC Combined Matric Level (PRE) 2000]
A. is a positive relationship
B. is an inverse relationship
C. They are independent of each other
D. They do not have any relationship
Answer –B. is an inverse relationship
Explanation-
40. Movement along the same demand curve is know as….[SSC Section Officer (Audit) 2001]
A. Extension and Contraction of Demand
B. Increase and Decrease of Demand
C. Contraction of supply
D. Increase of supply
Answer –B. Increase and Decrease of Demand
Explanation-