GATE (Graduate Aptitude Test in Engineering) Economics: Questions 961 - 964 of 1256

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Question 961

Question

Assertion-Reason▾

Assertion(Ꭺ)

The demand and AC curves have a geometrical relationship

Reason(Ꭱ)

Price and output combinations lies on demand and AC curves

Choices

Choice (4)Response

a.

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

b.

Ꭺ is true but Ꭱ is false

c.

Ꭺ is false but Ꭱ is true

d.

Both Ꭺ and Ꭱ are false

Question 962

Cardinal Approach and Ordinal Approach

Question

MCQ▾

Which of the statements are true?

i. Optimal choice is determined at point of tangency

ii. In general, tangency is not a sufficient condition for optimality

iii. For convex preferences, tangency is a sufficient condition for optimal choice

Choices

Choice (4)Response

a.

Only i

b.

i and iii

c.

i, ii and iii

d.

Only ii

Question 963

Tax Reforms-Goods and Services Tax

Question

MCQ▾

What does the Laffer curve represent?

Choices

Choice (4)Response

a.

Tax incidence

b.

Relationship between tax rate and tax revenue

c.

Loss of consume surplus

d.

Loss of producer surplus

Question 964

Question

MCQ▾

The bandwagon effect indicates towards the economic phenomena of

Choices

Choice (4)Response

a.

Negative network externalities

b.

Positive network externalities

c.

Falling tax revenue when tax continues to rise

d.

Rise in public expenditure as income growth expands

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