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Free download in PDF Demand and Supply Short Questions & Answers for competitive exams. These Demand and Supply Quiz Objective Questions with Answers are useful for competitive exams UGC NET, GATE, IBPS Specialist Recruitment Test.
41
When cross elasticity of demand is a large positive number, one can conclude that:
[A]
The good is normal
[B]
The good is inferior
[C]
The good is a substitute
[D]
The good is a complement
Answer: The good is a substitute
42
Price and demand are positively correlated in case of:
[A]
Necessities
[B]
Comforts
[C]
Giffen goods
[D]
Luxuries
43
The supply of a good refers to:
[A]
Stock available for sale
[B]
Total stock in the warehouse
[C]
Actual Production of the good
[D]
Quantity of the good offered for sale at a particular price per unit of time
Answer: Quantity of the good offered for sale at a particular price per unit of time
44
The economist’s objections to monopoly rest on which of the following grounds?
[A]
There is a transfer of income from consumers to the monopolist
[B]
There is welfare loss as resources tend to be misallocated under monopoly
[C]
Only A is correct
[D]
Both A and B are correct
Answer: Both A and B are correct
45
In which of the following market structure is the degree of control over the price of its product by a firm very large?
[A]
Imperfect competition
[B]
Perfect competition
[C]
Monopoly
[D]
In A and B both
46
Which among the following is not a function of International Monetary Fund?
[A]
It serves a medium term and long term credit institution’
[B]
It provides a mechanism for improving short term balance of payments position’
[C]
It provides machinery for international consultations’
[D]
It provides reservoir of the currencies of the member countries and enables members to borrow one another’s currency’
Answer: It serves a medium term and long term credit institution’
47
Which among the following is NOT correct?
[A]
Floating exchange rate system works on the market mechanism
[B]
Floating exchange rate breeds uncertainties and speculation
[C]
Economic and political factors and value judgments influence the choice of the exchange rate system
[D]
The system of floating exchange rate requires comprehensive government intervention
Answer: The system of floating exchange rate requires comprehensive government intervention
48
Who propounded the opportunity cost Theory of international trade?
[A]
Ricardo
[B]
Marshall
[C]
Heckscher & Ohlin
[D]
Haberler
49
Which of the following is also known as International Bank for Reconstruction and Development?
[A]
Asian Development Bank
[B]
World Bank
[C]
Reserve Bank of India
[D]
International Monetary Fund
50
‘Infant industry argument’ in international trade is given in support of:
[A]
Granting Protection
[B]
Free trade
[C]
Encouragement to export oriented small and tiny industries
[D]
None of the above
Answer: Granting Protection
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