Lakshya Education MCQs

Question: Positive income elasticity implies that as income rises, demand for the commodity
C.Remains unchanged
D.Becomes Zero
Answer: Option A

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Question 1. In long run equilibrium, the pure monopolist can make pure profits because of
  1.    Blocked entry
  2.    The high price he charges
  3.    The low LAC costs
  4.    Advertising
Answer: Option A
Question 2. Which of the following is not a feature of perfect competition?
  1.    Large number of buyers and sellers
  2.    Small number of buyers and sellers
  3.    Free entry and exit
  4.    Goods is homogeneous
Answer: Option B
Question 3. A firm under perfect competition will be making minimum losses (in the short run) at a point where
  1.    MC>MR
  2.    MR>MC
  3.    MC=MR
  4.    AC=AR
Answer: Option C
Question 4. An inferior commodity is one which is consumed in smaller quantities when the income of consumer
  1.    Becomes nil
  2.    Remains the same
  3.    Falls
  4.    Rises
Answer: Option D
Question 5. Indifference curves are convex to the origin because
  1.    Two goods are perfect substitutes
  2.    Two goods are imperfect substitutes
  3.    Two goods are perfect complementary goods
  4.    None of the above
Answer: Option B
Question 6. According to Malthus, population increases by progression of which kind?
  1.    Systematic
  2.    Arithmetic
  3.    Geometric
  4.    Automatic
Answer: Option C

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