Questions

Q:

Which one of the following is not an assumption in the law of demand?

A) There are no changes in the taste and preferences of consumers B) Income of consumers remains constant
C) Consumers are affected by demonstration effect D) There are no changes in the price of substitute goods.
 
Answer & Explanation Answer: C) Consumers are affected by demonstration effect

Explanation:

There are certain assumptions underlying the law of demand, which are as follows:

i. Assumes that the consumer’s income remains same

ii. Assumes that the preferences of consumer remain same.

iii. Considers that the fashion does not show any changes, because if fashion changes, then people would not purchase the products that are out of fashion.

iv. Assumes that there would be no change in the age structure, size, and sex ratio of population. This is because if population size increases, then the number of buyers increases, which, in turn, affect the demand for a product directly.

v. Restricts the innovation and new varieties of products in the market, which can affect the demand for the existing product.

vi. Restricts changes in the distribution of income.

vii. Avoids any type of change fiscal policies of the government of a nation, which reduces the effect of taxation on the demand of product.

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Q:

The relation between the consumer’s optimal choice of the quantity of a good and its price is very important and this relation is called the ________ function.

A) Price B) Substitution
C) Supply D) Demand
 
Answer & Explanation Answer: D) Demand

Explanation:
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Q:

A minimum wage _____.

A) is the price floor below which workers may not sell their labor B) is set at a price below the equilibrium wage
C) creates a price ceiling below which the wage cannot legally go D) decreases unemployment
 
Answer & Explanation Answer: A) is the price floor below which workers may not sell their labor

Explanation:
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Q:

Rate of the growth of an economy is measured in terms of

A) National income B) Monthly family income
C) Number of people who have been lifted above the poverty line D) Industrial Development
 
Answer & Explanation Answer: A) National income

Explanation:
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Q:

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.

 

The news has always ____________ predicated on informing the consumer. It speaks of — apart from the day’s most ____________ upheavals — the best and the worst that _____________ has managed to accomplish each day. This includes the medal-winners, the laureates, the record-breakers, the deal-makers _________the criminals, the villains, the corrupt. The news regales us ________ the highlights, a reel of the most provoking ones that made it into a window of a half-an-hour.

 

the day’s most ____________ upheavals

 

 

 

A) significance B) significantly
C) significant D) significancy
 
Answer & Explanation Answer: C) significant

Explanation:
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Q:

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.

 

All this suggests the intimate relations which exist between history, politics, and sociology. The ____________ thing, however, is not the identities but the distinctions.For, however much the _____________ disciplines may, in practice, overlap, it is necessary ________ the sake of clear thinking to have their limits defined. As far _______sociology and history are concerned the differences may be summed up in a word. __________ history and sociology are concerned with the life of man as man.

however much the _____________ disciplines may,

 

A) vary B) variety
C) various D) variant
 
Answer & Explanation Answer: C) various

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Q:

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.

 

Violence takes a heavy toll and affects public life ______. High or low, known or unknown, rich or poor, popular or unpopular, no one is safe or secure today. It
appears that one can harm anybody at any time and at ______. A mad and sad rat race is on to make money and ______ power at any cost and by any means. The
result is that no political party or group can now ______ into claim to total innocence in so far as ______ of violence against innocent person for personal or political
gains is concerned. Violent demonstrations, rallies, hartals have become the order of the day.

 

Violence takes a heavy toll and affects public life ______.

 

A) adversely B) moderately
C) relatively D) ultimately
 
Answer & Explanation Answer: A) adversely

Explanation:
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Q:

In the following question, some part of the sentence may have errors. Find out which part of the sentence has an error and select the appropriate option. If a sentence is free from error, select 'No Error'.

 

He explained that the pillars of tribalism (1)/ that humans rely on for security would always (2)/ counter any significant culture or social change. (3)/ No error (4)

 

A) 1 B) 2
C) 3 D) 4
 
Answer & Explanation Answer: C) 3

Explanation:
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