Economics

✅ The correct answer is A.
Quantity demanded is a Flow concept. The quantity of the current production of a commodity which moves from a factory to the market is called flow. The aggregates of macroeconomics are of two kinds some are stocks, typically the stock of capital ‘k’ which is a timeless concept.

✅ The correct answer is B.
Mixed economy means an economy where there is co-existence of public sector along with private sector. All modern economies are mixed where the means of production are shared between the private and public sectors. Also called dual economy.

✅ The correct answer is A.
Oligopoly form of market structure is characterised by interdependence in decision-making as between the different competing firms. An oligopoly is a market form wherein a market or industry is dominated by a small number of large sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers. Oligopolies have their own market structure.

✅ The correct answer is C.
If firm’s average cost curve is falling then marginal curve must be below average cost curve.

✅ The correct answer is B.
If there are implicit costs of production Economic profit will be less than accounting profit. Economic profit is total revenue minus opportunity cost. Accounting profit is total revenue minus explicit cost. Opportunity costs are higher than explicit costs because opportunity costs also include implicit costs.

✅ The correct answer is A.
Ceteris Paribus means other things remaining same. The Latin phrase ceteris paribus – literally, “holding other things constant” – is commonly translated as “all else being equal.” A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same.

✅ The correct answer is A.
If the goods are complementary like car and petrol, their cross elasticity is Negative. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.

✅ The correct answer is C.
In the case of an inferior good, the income elasticity of demand is Negative. A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes.

✅ The correct answer is A.
Wheat market comes closest to perfect market. A perfectly competitive firm is called a price taker, because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. When a wheat grower wants to know what the going price of wheat is, he or she has to go to the computer or listen to the radio to check.

✅ The correct answer is D.
When supply of a commodity increases without change in price, it is called rise in supply.