A. Price determined by demand and supply
B. Price determined by Cost and Profit
C. Price determined by Cost of production
D. Price determined to maximise profit
Answer –A. Price determined by demand and supply
Explanation-
72. Under which market condition do firms have excess capacity?[SSC CGL Tier-I 2010]
A. Perfect competition
B. Monopolistic competition
C. Duopoly
D. Oligopoly
Answer –B. Monopolistic competition
Explanation-
73. The measure of a worker’s real wage is:[SSC CPO Sub-Inspector 2003]
A. The change in his productivity over a given time
B. His earnings after deduction at source
C. His daily earnings
D. The purchasing power of his earnings
Answer – D. The purchasing power of his earnings
Explanation-
74. An exceptional demand curve is one that moves:[SSC Tax Assistant (Income Tax & Central Excise) 2009]
A. upward to the right
B. downward to the right
C. horizontally
D. vertically
Answer –B. downward to the right
Explanation-
75. Seawater, fresh air, etc., are regarded in Economics as:[SSC Section Officer (Commercial Audit 2006]
A. Giffen goods
B. inferior goods
C. free goods
D. normal goods
Answer –D. normal goods
Explanation-
76. Price theory is also known as:[SSC CGL Tier-I 2010]
A. Macro Economics
B. Development Economics
C. Public Economics
D. Micro Economics
Answer –D. Micro Economics
Explanation-
77. If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for:[SSC Combined Matric Level (PRE) 2000]
A. Coke will decrease
B. 7-Up will decrease
C. Coke and 7-Up will increase
D. Coke and 7-Up will decrease
Answer –D. Coke and 7-Up will decrease
Explanation-
78. When marginal utility is zero, the total utility is:[SSC CPO Sub-Inspector 2004]
A. Minimum
B. Increasing
C. Maximum
D. Decreasing
Answer – C. Maximum
Explanation-
79. Production function explains the relationship between…[SSC Tax Assistant (Income Tax & Central Excise) 2009]
A. initial inputs and ultimate output
B. inputs and ultimate consumption
C. output and consumption
D. output and exports
Answer –A. initial inputs and ultimate output
Explanation-
80. The demand curve shows that price and quantity demanded are…….[SSC Combined Matric Level (PRE) 2000]
A. directly related only
B. directly proportional and also directly related
C. inversely proportional and also inversely related
D. inversely related only
Answer –C. inversely proportional and also inversely related
Explanation-