KAS ZONE Prelims Practice 4 Kerala PSC
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1. An increase in the consumer income leads to a decrease in demand of which type of good ?
Anonymous Quiz
14%
[A] normal good
27%
[B] complementary good
41%
[C] inferior good
17%
[D] substitute good
2. Which of the following is a fixed cost to a manufacturing firm in short-run ?
Anonymous Quiz
27%
[A] Insurance on buildings
38%
[B] Overtime payment to worker
21%
[C] Cost of energy
14%
[D] Cost of Raw Material
4. What is the income elasticity of demand for inferior goods?
Anonymous Quiz
10%
[A] equal to 1
49%
[B] greater than 1
37%
[C] less than 0
3%
[D] greater than 0
8. In terms of micro-economics, comparative advantage is based on which of the following ?
Anonymous Quiz
13%
[A] dollar price
21%
[B] labor cost
48%
[C] opportunity cost
17%
[D] capital cost
13. Which of the following are part of Gross National Product(GNP)?
Anonymous Quiz
3%
[A] Imports
7%
[B] Exports
27%
[C] Money earned by resident abroad
63%
[D] All of the above
15. What does a good with positive externalities known as ?
Anonymous Quiz
30%
[A] Giffen goods
21%
[B] Public goods
44%
[C] Merit goods
5%
[D] Snob good
16. Which of the following is included in market price ?
Anonymous Quiz
53%
[A] Indirect taxes
19%
[B] Direct taxes
16%
[C] Subsidies
12%
[D] None of the above
17. What is subtracted from personal income to get personal disposable income?
Anonymous Quiz
32%
[A] Indirect taxes
50%
[B] Direct taxes
16%
[C] subsidies
1%
[D] None of the above
18. Which among the following is an example of substitute goods ?
Anonymous Quiz
7%
[A] Milk and Coffee
7%
[B] Pen and Paper
19%
[C] Ink and Pen
66%
[D] Tea and coffee