CA CPT Examination

General Economics

Level of Knowledge : Basic knowledge

Objective :

6. Bricks for houses is an example of which kind of demand?

a) Composite
b) Competitive
c) Joint
d) Derived

7. Contraction of demand results due to _________

a) Increase in price of goods
b) Decrease in no. of production
c) Decrease in output of sellers
d) Decrease in price of good

8. Demand of i-pod increases from Rs 950 to Rs 980 and income increases from Rs 9000 to Rs 9800.What is income elasticity?

a) 0.53
b) 0.35
c) 0.43
d) None

9. Elasticity of supply is defined as responsiveness of quantity supplied of a good to change in ________

a) price of concerned good
b) price of substitute good
c) demand
d) none

10. External economics are enjoyed:

a) by large producers only
b) as firm expands
c) both a and b
d) none