GATE (Graduate Aptitude Test in Engineering) Economics: Questions 952 - 955 of 1256

Access detailed explanations (illustrated with images and videos) to 1256 questions. Access all new questions- tracking exam pattern and syllabus. View the complete topic-wise distribution of questions. Unlimited Access, Unlimited Time, on Unlimited Devices!

View Sample Explanation or View Features.

Rs. 500.00 -OR-

How to register? Already Subscribed?

Question 952

Question

Assertion-Reason▾

Assertion(Ꭺ)

Value of marginal product in perfect competition ⩾ value of marginal product in monopolistic competition.

Reason(Ꭱ)

Elasticity of demand is infinity in a perfectly competitive market; elasticity of demand is greater than 1 in monopolistic competition

Choices

Choice (4)Response

a.

Ꭺ is false but Ꭱ is true

b.

Both Ꭺ and Ꭱ are false

c.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

d.

Ꭺ is true but Ꭱ is false

Question 953

Question

MCQ▾

In the gravity which factors influence size and flow of bilateral trade between two countries?

Choices

Choice (4)Response

a.

Comparative advantage in the production of a good

b.

Factor endowments

c.

GDP of the two countries and distance between the two countries

d.

Absolute advantage in the production of a good

Question 954

Short-Run and Long-Run Analysis

Question

MCQ▾

How is marginal rate of technical substitution measured?

Choices

Choice (4)Response

a.

Measures trade-off between two factors of production while keeping output constant

b.

c.

d.

All a., b. and c. are correct

Question 955

General Equilibrium Analysis

Question

MCQ▾

What conditions of the First Welfare theorem is satisfied?

Choices

Choice (4)Response

a.

Competitive market will not will achieve equilibrium exhaust all gains from trade

b.

Distribution of economic benefits is fair

c.

All market equilibria are Pareto efficient

d.

Question does not provide sufficient data or is vague

Developed by: