MCQOPTIONS
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MCQOPTIONS
This section includes 240 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B.Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Let a firm employs 5 labourers and produces 120 units of output. When 6 labourers are employed the firm produces 136 units of output. Then the marginal product is --- |
| A. | 120 |
| B. | 136 |
| C. | 6 |
| D. | 16 |
| Answer» E. | |
| 2. |
Economies of scale refers to: |
| A. | Advantages resulting from large scale production |
| B. | Disadvantages resulting from large scale production |
| C. | Advantages resulting from the increase in the number of consumers |
| D. | All of the above |
| Answer» B. Disadvantages resulting from large scale production | |
| 3. |
Economics is a social science because |
| A. | The central point in economics is man and his problems |
| B. | Economics uses scientific approach to derive its laws |
| C. | Like History, Politics and Psychology economics deals with the problems of human being |
| D. | All of the above |
| Answer» E. | |
| 4. |
Wear and tear of capital due to constant use means: |
| A. | Intermediate consumption |
| B. | Final consumption |
| C. | Depreciation |
| D. | Devaluation |
| Answer» D. Devaluation | |
| 5. |
When an individual’s income falls, when everything else remains the same, his demand for inferior goods: |
| A. | Increases |
| B. | Decreases |
| C. | Remains unchanged |
| D. | Cannot say |
| Answer» B. Decreases | |
| 6. |
An increase in market supply, demand remaining the same causes |
| A. | Increase in equilibrium price |
| B. | Decrease in equilibrium quantity |
| C. | Decrease in equilibrium price and increase in equilibrium quantity |
| D. | Both equilibrium price and quantity rises |
| Answer» D. Both equilibrium price and quantity rises | |
| 7. |
At the ‘point of inflection’ |
| A. | MP is maximum |
| B. | AP is maximum |
| C. | TP is maximum |
| D. | All of the above |
| Answer» B. AP is maximum | |
| 8. |
When an individual’s income rises, when everything else remains the same, his demand for normal goods: |
| A. | Rises |
| B. | Falls |
| C. | Remains the same |
| D. | Any of the above is possible |
| Answer» B. Falls | |
| 9. |
Say’s Law of market was proved wrong by: |
| A. | Industrial revolution |
| B. | Great Depression |
| C. | Green revolution |
| D. | Gulf war |
| Answer» C. Green revolution | |
| 10. |
Keynesian aggregate supply curve is: |
| A. | Perfectly elastic |
| B. | Perfectly inelastic |
| C. | Unitary elastic |
| D. | Parabola |
| Answer» B. Perfectly inelastic | |
| 11. |
In drawing an individual demand curve for a commodity, all but which of the following are kept constant: |
| A. | Individual’s money income |
| B. | The prices of the related commodity |
| C. | Price of the commodity under consideration |
| D. | Tastes of the consumer |
| Answer» D. Tastes of the consumer | |
| 12. |
Production function expresses |
| A. | The relationship between input and output |
| B. | How maximum output is produced with the given input |
| C. | What is the least-cost combination of input to produce the given output |
| D. | All of the above |
| Answer» E. | |
| 13. |
A firm produces 200 units of commodity X by employing 10 workers and 240 units of the same commodity by employing 12 workers. Then the Average Product of the worker is -------- |
| A. | 200 |
| B. | 240 |
| C. | 20 |
| D. | 40 |
| Answer» D. 40 | |
| 14. |
“The starting point of all economic activity is the existence of human wants” Who said this? |
| A. | Adam Smith |
| B. | Selligman |
| C. | Ricardo |
| D. | Alfred Marshall |
| Answer» C. Ricardo | |
| 15. |
Marginal product of a factor is |
| A. | The additional product received by the firm due to the employment of an additional unit of a variable factor |
| B. | Addition to the total product when one more unit of a factor is employed |
| C. | The rate of change in the total product per unit change in the variable factor. |
| D. | All of the above |
| Answer» E. | |
| 16. |
If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be: |
| A. | Positive |
| B. | Negative |
| C. | Zero |
| D. | One |
| Answer» D. One | |
| 17. |
Returns to scale examines the production function in the: |
| A. | Short-term |
| B. | Medium term |
| C. | Long term |
| D. | Quinquinial |
| Answer» D. Quinquinial | |
| 18. |
Which one of the following is an example of an economic good |
| A. | Sunlight |
| B. | Air |
| C. | Petrol |
| D. | None of the above |
| Answer» D. None of the above | |
| 19. |
A market: |
| A. | Necessarily refers to a meeting place between buyer and sellers |
| B. | Does not necessarily refers to a meeting place between buyer and sellers |
| C. | Extends over the entire country |
| D. | Extends over a city |
| Answer» C. Extends over the entire country | |
| 20. |
Primary sector includes: |
| A. | Agriculture |
| B. | Industry |
| C. | Services |
| D. | Banking |
| Answer» B. Industry | |
| 21. |
Wages and prices are ----------, according to the Classicals. |
| A. | Rigid |
| B. | Flexible |
| C. | Both |
| D. | All of these |
| Answer» C. Both | |
| 22. |
If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is: |
| A. | Greater than |
| B. | one Equal to one |
| C. | Smaller than one |
| D. | Zero |
| Answer» E. | |
| 23. |
Production is said to be efficient when: |
| A. | The re-allocation of resources cannot increase the production of the article even by one unit |
| B. | More output is produced with the given input |
| C. | Resources are fully employed |
| D. | All of the above |
| Answer» B. More output is produced with the given input | |
| 24. |
Supply curve represents -------- relationship between quantity andprice. |
| A. | direct |
| B. | inverse |
| C. | either direct or inverse |
| D. | none of the above |
| Answer» B. inverse | |
| 25. |
When a firm doubles its inputs and finds that its output has morethan doubled, this is known as: |
| A. | economies of scale. |
| B. | constant returns to scale. |
| C. | diseconomies of scale. |
| D. | a violation of the law of diminishing returns. |
| Answer» B. constant returns to scale. | |
| 26. |
When marginal product reaches its maximum, what can be said oftotal product? |
| A. | total product must be at its maximum |
| B. | total product starts to decline even if marginal product is positive |
| C. | total product is increasing if marginal product is still positive |
| D. | total product levels off |
| Answer» D. total product levels off | |
| 27. |
Increase in output less than proportional to increase in inputs iscalled: |
| A. | increasing returns |
| B. | constant returns |
| C. | diminishing returns |
| D. | marginal returns |
| Answer» D. marginal returns | |
| 28. |
In a horizontal straight line demand curve, the price elasticity ofdemand is: |
| A. | unity |
| B. | infinity |
| C. | zero |
| D. | less than one |
| Answer» C. zero | |
| 29. |
“In the long run, we are all dead”. Who said this? |
| A. | keynes |
| B. | adam smith |
| C. | karl marx |
| D. | david ricardo |
| Answer» B. adam smith | |
| 30. |
The proportion between incremental income and incrementalconsumption is called: |
| A. | apc |
| B. | aps |
| C. | mpc |
| D. | mps |
| Answer» D. mps | |
| 31. |
Who repudiated Say’s law of market? |
| A. | j.b. say |
| B. | david ricardo |
| C. | j.s. mill |
| D. | j.m. keynes |
| Answer» E. | |
| 32. |
‘The General Theory’, was published in : |
| A. | 1776 |
| B. | 1890 |
| C. | 1936 |
| D. | 1950 |
| Answer» D. 1950 | |
| 33. |
Author of the book ‘The General Theory of Employment, Interest andMoney’: |
| A. | karl marxq |
| B. | j.b. say |
| C. | j.m. keynes |
| D. | adam smith |
| Answer» D. adam smith | |
| 34. |
Temporary unemployment is -------------, according to the Classicaleconomists: |
| A. | impossible |
| B. | permanent |
| C. | possible |
| D. | none of these |
| Answer» D. none of these | |
| 35. |
Equilibrium in the economy is settled by ---------, according to theClassicals. |
| A. | centralized planning |
| B. | price mechanism |
| C. | both the planning and price mechanism |
| D. | none of these |
| Answer» C. both the planning and price mechanism | |
| 36. |
“Supply creates its own demand” is called: |
| A. | law of supply |
| B. | law of market |
| C. | law of demand |
| D. | law of elasticity |
| Answer» C. law of demand | |
| 37. |
‘Law of Market’ is attributed to: |
| A. | j.s. mill |
| B. | j.b. say |
| C. | alfred marshall |
| D. | a.c. pigou |
| Answer» C. alfred marshall | |
| 38. |
The term “Classical Economics” was first used by: |
| A. | j.m. keynes |
| B. | adam smith |
| C. | karl marx |
| D. | david ricardo |
| Answer» D. david ricardo | |
| 39. |
Supply curve represents -------- relationship between quantity andprice |
| A. | direct |
| B. | inverse |
| C. | either direct or inverse |
| D. | none of the above |
| Answer» B. inverse | |
| 40. |
If a positively sloped linear supply curve passes through the origin, theelasticity of supply is |
| A. | inelastic |
| B. | elastic |
| C. | unitary elastic |
| D. | perfectly elastic |
| Answer» D. perfectly elastic | |
| 41. |
If a positively sloped linear supply curve crosses the quantity axis, theelasticity of supply is: |
| A. | inelastic |
| B. | elastic |
| C. | unitary elastic |
| D. | perfectly elastic |
| Answer» B. elastic | |
| 42. |
Elasticity of supply for a positively sloped straight line supply curve thatintersects the price axis is: |
| A. | equal to zero |
| B. | equal to one |
| C. | greater than one |
| D. | constant |
| Answer» D. constant | |
| 43. |
From the position of stable equilibrium, the market supply of a commoditydecreases, while the market demand remains unchanged, then: |
| A. | equilibrium price falls |
| B. | equilibrium quantity rises |
| C. | both equilibrium price and equilibrium quantity decreases |
| D. | equilibrium price rises, but equilibrium quantity falls |
| Answer» E. | |
| 44. |
If the supply curve of the commodity is having a positive slope, a rise inthe price of the commodity, results in: |
| A. | increase in supply |
| B. | increase in quantity supplied |
| C. | decrease in supply |
| D. | decrease in quantity supplied |
| Answer» C. decrease in supply | |
| 45. |
If a small change in price leads to infinitely large change in quantitydemanded, then the demand is: |
| A. | perfectly elastic |
| B. | perfectly inelastic |
| C. | elastic |
| D. | inelastic |
| Answer» B. perfectly inelastic | |
| 46. |
If the income elasticity of demand for a commodity is found to be 0.4,then the commodity concerned is: |
| A. | luxury |
| B. | necessity |
| C. | giffen’s goods |
| D. | independent good |
| Answer» C. giffen’s goods | |
| 47. |
If the income elasticity of demand is greater than one, then thecommodity is: |
| A. | necessity |
| B. | luxury |
| C. | inferior |
| D. | non-related commodity |
| Answer» B. luxury | |
| 48. |
If the quantity demanded remains unchanged as the price of thecommodity falls, the coefficient of price elasticity of demand is: |
| A. | greater than |
| B. | one equal to one |
| C. | smaller than one |
| D. | zero |
| Answer» E. | |
| 49. |
When an individual’s income falls, when everything else remains thesame, his demand for inferior goods: |
| A. | increases |
| B. | decreases |
| C. | remains unchanged |
| D. | cannot say |
| Answer» B. decreases | |
| 50. |
When an individual’s income rises, when everything else remains thesame, his demand for normal goods: |
| A. | rises |
| B. | falls |
| C. | remains the same |
| D. | any of the above is possible |
| Answer» B. falls | |