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:

An increase of 1% per annum in the rate of growth of the money supply will increase inflation in the long run by _______.

A) Zero percent B) One percent
C) 0.5 percent D) More than one percent
 
Answer & Explanation Answer: B) One percent

Explanation:
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Q:

The ________ curve represents the demand of all consumers in the market taken together at different levels of the price of the good.

A) monotonic B) indifferent
C) market demand D) diminishing
 
Answer & Explanation Answer: C) market demand

Explanation:
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Q:

Insure payment of minimum wages for tea leave pickers

A) will improve quality of tea. B) will reduce unemployment of tea leave pickers.
C) decreases unemployment. D) will increase picking cost for all tea companies.
 
Answer & Explanation Answer: D) will increase picking cost for all tea companies.

Explanation:
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Q:

In the following question, out of the given four alternatives, select the one which is opposite in meaning of the given word.

 

Procrastinate

 

A) Delay B) Defer  
C) Drag   D) Do
 
Answer & Explanation Answer: D) Do

Explanation:
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Q:

In the following question, a word has been written in four different ways out of which only one is correctly spelt. Select the correctly spelt word.

 

A) Guarantiei   B) Guarantee
C) Gaurantee   D) Garantee
 
Answer & Explanation Answer: B) Guarantee

Explanation:
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Q:

In the following question, out of the four alternatives, select the alternative which will improve the bracketed part of the sentence. In case no improvement is needed, select "no improvement".

 

People (have got so addict) to their virtual life that they forget there is more to life than just sitting in front of a plastic box.

 

A) have got so addicting B) has got so addicted
C) have got so addicted D) no improvement
 
Answer & Explanation Answer: C) have got so addicted

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.

 

We get sleepy and wake up, become hungry and thirsty at certain hours, ____________ force of habit. We form the habit of liking a certain chair, or nook, or corner, or path, or desk, and __________ seek this to the exclusion of all others. We ______________ use a particular pitch of voice and type of enunciation in speaking, and this becomes one of our characteristic marks; or we _________ the habit of using barbarisms or solecisms of language in __________, and these cling to us and become an inseparable part of us later in life.

 

desk, and __________ seek this to the exclusion

 

 

A) than B) there
C) then D) that
 
Answer & Explanation Answer: C) then

Explanation:
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