134/23

41. Which among the following is/are the reason/s for inverse relation between price and
demand ?

i. Substitution effect
ii. Income effect
iii. Speculation effect
iv. Giffen goods
A) Onlyi 8) Only i and ii C) Onlyi,iiandiii D) Allof these

42. Read the following statements and select the right alternative given below.
i. In administered pricing, prices are fixed by Board of Directors of companies.
ர்‌. In full cost pricing, a fair amount of profit is added along with the cost price.
A) Statement i is correct and statement ii is incorrect
B) Statement ii is correct and statement i is incorrect
C) Both statements i and ii are correct
D) Both statements i and ii are incorrect

43. If any change in price does not affect quantity demanded, it can be due to
A) Unitary elastic demand B) Perfectly inelastic demand
C) Relatively elastic demand D) Relatively inelastic demand

44. Which of the following statements is/are correct ?

i. Normal price refers to the long period price at which long term demand equals
to short term supply.

ர்‌. The cost element has greater impact on the determination of long run price.

A) Only statement i is correct B) Only statement ii is correct

C) Both statements are correct D) Both statements are incorrect
45. The internal economies of scale does not include

A) Economies of vertical integration B) Economies of risk spreading

C) Marketing economies D) Economies of disintegration

46. Which theory of Joel Dean on advertising outlays mentions, “the more profitable and

the more liquid the financial position of the business, the more advertising should be
undertaken” ?

A) Percentage of sales approach B) All you can afford approach
C) Competitive parity approach D) None of these

47. Which of the following statements is/are correct ?

i. Marginal product is the change in total product resulting from a change in
variable input.

Mathematically, marginal product is the slope of the average product curve.
Only statement i is correct

Only statement ii is correct

Both statements i and ii are correct

Both statements i and ii are incorrect

A -8-

BOBS