Indian Economy Questions

Consider the following statements about indifference curves:

1. Indifference curves are convex to the origin.

2. Higher indifference curve represents higher level of satisfaction.

3. Two indifference curves cut each other.Which of the statements given above is/are correct?

Which of the following equation is/are INCORRECT?

I. NI = NDP + Net Foreign Income
II. GNP = GDP + Net Foreign Income
III. NDP = GNP – Depreciation

Match the characteristics with their market structure:

(a) MR = MP
(b) Elasticity of demand depends on pricing policies of rivals

Match the characteristics with their market structure:

(a) Differentiated products, but close substitutes for consumers so their demand curves are elastic.
(b) Firm will tend to set output so that it earns maximum profits.

In India, Agriculture income is calculated by

Match the characteristics with their market structure:

(a) Differentiated products, but close substitutes for consumers so their demand curves are elastic
(b) Homogeneous product, all goods are perfect substitutes for consumers

Match the characteristics with their market structure:

(a) MC = Price
(b) Firm will tend to set output so that it earns maximum profits.

Match the characteristics with their market structure:

(a) demand will tend to be inelastic
(b) Firm has control over quantity of output but it must take into account reactions of competitors