Questions

Q:

Increase in the demand for a good will cause the equilibrium price of the good to ________ and the equilibrium quantity to _________.

A) increase; increase B) decrease; decrease
C) increase; decrease D) decrease; increase
 
Answer & Explanation Answer: A) increase; increase

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Q:

Which of the following metals does NOT react with cold or hot water?

A) Aluminium B) Potassium
C) Sodium D) Calcium
 
Answer & Explanation Answer: A) Aluminium

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Q:

Which of the following is used to get relief when you have been stung by a honeybee?

A) Common salt B) Baking soda
C) Acetic acid D) Washing soda
 
Answer & Explanation Answer: B) Baking soda

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Q:

Read each sentence to find out whether there is any error in any underlined part and indicate your response in the Answer Sheet against the corresponding letter i.e., (a) or (b) or (c). If you find no error, your response should be indicated as (d).

A) It B) was raining
C) cats and dogs. D) No error
 
Answer & Explanation Answer: D) No error

Explanation:

The given sentence is grammatically correct and there is no error.

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Q:

__________ says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output (i.e., marginal product of that input) will start falling.

A) Law of diminishing marginal product B) Law of variable proportions
C) The Short Run D) The Long Run
 
Answer & Explanation Answer: A) Law of diminishing marginal product

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Q:

The unemployment created at certain times of the year, when the demand for goods and services are lower than normal, is _____.

A) Cyclical unemployment B) Frictional unemployment
C) Seasonal unemployment D) Structural unemployment
 
Answer & Explanation Answer: C) Seasonal unemployment

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Q:

A manufacturer faces price elasticity of demand of a ­1.25 for its product. If it lowers its price by 6.4%, the increase in quantity sold will be _____.

A) 5.15 percent B) 7.65 percent
C) 8 percent D) 5.12 percent
 
Answer & Explanation Answer: C) 8 percent

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Q:

Which of the following is NOT a noble gas?

A) Radon B) Krypton
C) Xenon D) Hydrogen
 
Answer & Explanation Answer: D) Hydrogen

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