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.
| 51. |
In drawing an individual demand curve for a commodity, all but whichof 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 | |
| 52. |
Relation between price of a commodity and demand for anothercommodity is measured by: |
| A. | price elasticity |
| B. | income elasticity |
| C. | cross elasticity |
| D. | elasticity of substitution |
| Answer» D. elasticity of substitution | |
| 53. |
Other things remaining the same, the quantity of a product demandedincreases with ------------ in price. |
| A. | increase |
| B. | decrease |
| C. | variation |
| D. | none of the above |
| Answer» C. variation | |
| 54. |
labourers are employed the firm produces 136 units of output. Thenthe marginal product is --- |
| A. | 120 |
| B. | 136 |
| C. | 6 |
| D. | 16 |
| Answer» D. 16 | |
| 55. |
In the case of diminishing returns to scale, a given proportionateincrease in all factors causes |
| A. | a more than proportionate increase in output |
| B. | an equal proportionate increase in output |
| C. | a less than proportionate increase in output |
| D. | none of the above |
| Answer» D. none of the above | |
| 56. |
The ‘point of inflection’ come in which stage of the law of variable proportions |
| A. | stage i |
| B. | stage ii |
| C. | stage iii |
| D. | none of the above |
| Answer» B. stage ii | |
| 57. |
A rational producer will select his level of production in which stage ofthe law of variable proportions |
| A. | stage i |
| B. | stage ii |
| C. | stage iii |
| D. | either stage i or stage ii |
| Answer» C. stage iii | |
| 58. |
Name the economist who analyses the subject matter of economics intotwo branches: micro economic analysis and macro economic analysis. |
| A. | adam smith |
| B. | alfred marshall |
| C. | ragner frisc |
| D. | p a samuelson |
| Answer» D. p a samuelson | |
| 59. |
Micro economics doesn’t deal with: |
| A. | the study of individual economic units |
| B. | determination of factor prices |
| C. | price determination of commodities |
| D. | general equilibrium analysis |
| Answer» E. | |
| 60. |
“The starting point of all economic activity is the existence of humanwants” Who said this? |
| A. | adam smith |
| B. | selligman |
| C. | ricardo |
| D. | alfred marshall |
| Answer» C. ricardo | |
| 61. |
The distribution of national product among the members of the societyis the problem of: |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | all of the above |
| Answer» D. all of the above | |
| 62. |
Economic Laws are: |
| A. | statement of tendencies |
| B. | exact and predictable |
| C. | definite |
| D. | none |
| Answer» B. exact and predictable | |
| 63. |
Consumption of capital good in the process of production is called as: |
| A. | capital consumption |
| B. | depreciation |
| C. | decay of capital |
| D. | none of the above |
| Answer» C. decay of capital | |
| 64. |
The want satisfying power of a commodity: |
| A. | satisfaction |
| B. | utility |
| C. | value |
| D. | marginal utility |
| Answer» C. value | |
| 65. |
In classical theory the level of employment is a function of: |
| A. | price level |
| B. | money wage rate |
| C. | quantity of money |
| D. | real wage rate |
| Answer» E. | |
| 66. |
Laws of return shows ---------production function. |
| A. | short-term |
| B. | medium term |
| C. | long term |
| D. | annual |
| Answer» B. medium term | |
| 67. |
Supply curve represents -------- relationship between quantity and price. |
| A. | direct |
| B. | inverse |
| C. | either direct or inverse |
| D. | none of the above |
| Answer» B. inverse | |
| 68. |
When average product is at a maximum, marginal product is: |
| A. | zero |
| B. | increasing |
| C. | equal to average product |
| D. | greater than average product |
| Answer» D. greater than average product | |
| 69. |
When a firm doubles its inputs and finds that its output has more than 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. | |
| 70. |
When marginal product reaches its maximum, what can be said of total 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 | |
| 71. |
A simplified representation of a real situation is called: |
| A. | theory |
| B. | hypotheses |
| C. | evidence |
| D. | economic model |
| Answer» E. | |
| 72. |
Increase in output less than proportional to increase in inputs is called: |
| A. | increasing returns |
| B. | constant returns |
| C. | diminishing returns |
| D. | marginal returns |
| Answer» D. marginal returns | |
| 73. |
Who wrote the article Laws of Returns Under Competitive Conditions? |
| A. | joan robinson |
| B. | e.h. chamberlin |
| C. | a.c. pigou |
| D. | p. sraffa |
| Answer» E. | |
| 74. |
In a horizontal straight line demand curve, the price elasticity of demand is: |
| A. | unity |
| B. | infinity |
| C. | zero |
| D. | less than one |
| Answer» C. zero | |
| 75. |
Goods produced for use in future productive process are called: |
| A. | intermediate goods |
| B. | final goods |
| C. | consumer goods |
| D. | capital goods |
| Answer» E. | |
| 76. |
If a worker specializes in the production of a single good, it is called: |
| A. | product based division of labour |
| B. | process based division of labour |
| C. | worker based division of labour |
| D. | none of these |
| Answer» B. process based division of labour | |
| 77. |
Those things that possess both utility and scarcity are called: |
| A. | economic goods |
| B. | free goods |
| C. | intermediate goods |
| D. | luxuries |
| Answer» B. free goods | |
| 78. |
Goods without which people can not live are called: |
| A. | comforts |
| B. | luxuries |
| C. | necessaries |
| D. | none |
| Answer» D. none | |
| 79. |
Who is known as the father of Modern Economics? |
| A. | adam smith |
| B. | j.m.keynes |
| C. | robinson |
| D. | ricardo |
| Answer» B. j.m.keynes | |
| 80. |
If marginal propensity to consume is 0.8, the value of multiplier will be: |
| A. | 1 |
| B. | 2.5 |
| C. | 5 |
| D. | 2 |
| Answer» D. 2 | |
| 81. |
Which of the following items does not include in the group? |
| A. | consumption |
| B. | investment |
| C. | rate of interest |
| D. | net exports |
| Answer» D. net exports | |
| 82. |
The problem of what to produce is a problem of: |
| A. | distribution |
| B. | technological choice |
| C. | consumption |
| D. | allocation of resources |
| Answer» E. | |
| 83. |
Pick the odd one: |
| A. | aggregate demand |
| B. | effective demand |
| C. | j.m. keynes |
| D. | law of market |
| Answer» E. | |
| 84. |
An important issue of macro economics is the determination of: |
| A. | consumption |
| B. | production |
| C. | utility |
| D. | income and employment |
| Answer» E. | |
| 85. |
Consumption expenditure directly varies with: |
| A. | savings |
| B. | investment |
| C. | disposable income |
| D. | rate of interest |
| Answer» D. rate of interest | |
| 86. |
Keynes strongly argued for: |
| A. | free trade |
| B. | non-intervention of government |
| C. | laissez-faire |
| D. | governmental intervention |
| Answer» E. | |
| 87. |
According to Keynes, wages and prices are: |
| A. | rigid |
| B. | flexible |
| C. | variable |
| D. | automatic |
| Answer» B. flexible | |
| 88. |
Keynes believed in : |
| A. | full employment equilibrium |
| B. | under employment equilibrium |
| C. | both |
| D. | none |
| Answer» C. both | |
| 89. |
According to Keynes, investment is a function of: |
| A. | rate of interest |
| B. | rate of profit |
| C. | rate of mei |
| D. | mei and rate of interest |
| Answer» E. | |
| 90. |
In Economics, 1930s is popularly known as the period of: |
| A. | great battle |
| B. | great depression |
| C. | industrial revolution |
| D. | great devide |
| Answer» C. industrial revolution | |
| 91. |
“In the long run, we are all deadâ€. Who said this? |
| A. | keynes |
| B. | adam smith |
| C. | karl marx |
| D. | david ricardo |
| Answer» B. adam smith | |
| 92. |
According to Keynes, unemployment is due to: |
| A. | deficiency of capital |
| B. | deficiency of labour |
| C. | deficiency of education |
| D. | deficiency in effective demand |
| Answer» E. | |
| 93. |
Marginal efficiency of investment curve is: |
| A. | slopping downwards |
| B. | slopping upwards |
| C. | parallel to x axis |
| D. | parallel to y axis |
| Answer» B. slopping upwards | |
| 94. |
The expected return on investment is called: |
| A. | marginal propensity to save |
| B. | marginal propensity to consume |
| C. | marginal revenue |
| D. | marginal efficiency of investment |
| Answer» E. | |
| 95. |
As income increases consumption also increases, but: |
| A. | proportionately |
| B. | more than proportionately |
| C. | less than proportionately |
| D. | equally |
| Answer» D. equally | |
| 96. |
Multiplier is obtained by: |
| A. | 1 – mpc |
| B. | 1/1- mps |
| C. | 1/1- apc |
| D. | 1/1-mpc |
| Answer» E. | |
| 97. |
1- MPC is called: |
| A. | apc |
| B. | aps |
| C. | mpc |
| D. | mps |
| Answer» E. | |
| 98. |
APC + APS is equal to: |
| A. | 0 |
| B. | >0 |
| C. | 1 |
| D. | <0 |
| Answer» D. <0 | |
| 99. |
Exports minus imports is termed as: |
| A. | net income |
| B. | net imports |
| C. | net exports |
| D. | national income |
| Answer» D. national income | |
| 100. |
The proportion between total income and total saving is called: |
| A. | apc |
| B. | aps |
| C. | mpc |
| D. | mps |
| Answer» C. mpc | |