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Development Economics Quiz | Development Economics Short Questions and Answers

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Free download in PDF Development Economics Short Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams. These short solved questions or quizzes are provided by Gkseries.
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41 Demand for a commodity refers to:
[A] Amount of the commodity demanded at a particular price and at a particular time
[B] Quantity demanded of that commodity
[C] Need for the commodity
[D] Desire for the commodity
Answer: Amount of the commodity demanded at a particular price and at a particular time
42 Which among the following statement is INCORRECT?
[A] If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
[B] The price elasticity of demand is expressed in terms of relative not absolute, changes in Price and quantity demanded’
[C] On a linear demand curve, all the five forms of elasticity can be depicted’
[D] If two demand curves are linear, and parallel to each other then at a particular price the coefficient of elasticity would be different on different demand curves.
Answer: If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
43 If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
[A] Increase
[B] Remain the same
[C] Become zero
[D] Decrease
Answer: Increase
44 The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
[A] Greater than zero but less than infinity
[B] Zero
[C] Equal to one
[D] Infinite
Answer: Infinite
45 An individual demand curve slopes downward to the right because of the:
[A] income effect of fall in Price
[B] Working of the law of diminishing marginal utility
[C] substitution effect of decrease in price
[D] All of the above
Answer: All of the above
46 Income elasticity of demand is defined as the responsiveness of:
[A] Quantity demanded to a change in income
[B] Income to a change in quantity demanded
[C] Quantity demanded to a change in price
[D] Price to a change in income
Answer: Quantity demanded to a change in income
47 The supply of a good refers to:
[A] Quantity of the good offered for sale at a particular price per unit of time
[B] Actual Production of the good
[C] Total stock in the warehouse
[D] Stock available for sale
Answer: Quantity of the good offered for sale at a particular price per unit of time
48 In the short run, when the output of a firm increases, its average fixed cost:
[A] Decreases
[B] First decreases and then rises
[C] Remains constant
[D] Increases
Answer: Decreases
49 The cost of one thing in terms of the alternative given up is called:
[A] opportunity cost
[B] Real cost
[C] Production cost
[D] Physical cost
Answer: opportunity cost
50 Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium:
[A] Quantity will increase
[B] Quantity will decrease
[C] Price will decrease
[D] Price will increase
Answer: Quantity will decrease
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