MCQOPTIONS
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MCQOPTIONS
This section includes 436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 201. |
_The Critique of Political Economy, the first fruits of Karl Marx's long painstaking research at the British Museum, appeared in$? |
| A. | 1859 |
| B. | 1857 |
| C. | 1855 |
| D. | 1853 |
| Answer» B. 1857 | |
| 202. |
_In which year, was the first volume of Das Capital by Karl Marx published?$? |
| A. | 1848 |
| B. | 1859 |
| C. | 1867 |
| D. | 1873 |
| Answer» D. 1873 | |
| 203. |
_Every factor of production gets rewarded equal to its$? |
| A. | Cost |
| B. | Marginal product |
| C. | Price |
| D. | Increasing return |
| Answer» C. Price | |
| 204. |
_Unemployment due to mechanization of agriculture is$? |
| A. | Seasonal |
| B. | Structural |
| C. | Industrial |
| D. | Personal |
| Answer» C. Industrial | |
| 205. |
_The human effort applied to the production of goods is called in economics$? |
| A. | Labour |
| B. | Skill |
| C. | Experience |
| D. | Service |
| Answer» B. Skill | |
| 206. |
_All labour is$? |
| A. | Homogeneous |
| B. | Heterogeneous |
| C. | Lazy |
| D. | Intelligent |
| Answer» C. Lazy | |
| 207. |
_For inferior commodities, income effect is$? |
| A. | Zero |
| B. | Negative |
| C. | Infinite |
| D. | Positive |
| Answer» C. Infinite | |
| 208. |
_Which one of the following is the task of the Planning Commission?$? |
| A. | Preparation of the plan |
| B. | Implementation of the plan |
| C. | Financing of the plan |
| D. | None of the above |
| Answer» B. Implementation of the plan | |
| 209. |
_Economic profit is$? |
| A. | Part of total cost |
| B. | Total revenue minus total cost |
| C. | Total revenue minus explicit cost |
| D. | Total variable cost minus total fixed cost |
| Answer» C. Total revenue minus explicit cost | |
| 210. |
_All inputs can be varied in$? |
| A. | Short run |
| B. | Long run |
| C. | Both periods |
| D. | None of the period |
| Answer» C. Both periods | |
| 211. |
_What implication does resource scarcity have for the satisfaction of wants?$? |
| A. | Not all wants can be satisfied |
| B. | We will never be faced with the need to make choices |
| C. | We must develop ways to decrease our individual wants |
| D. | The discovery of new natural resources is necessary to increase our ability to satisfy wants |
| Answer» B. We will never be faced with the need to make choices | |
| 212. |
_Under ______ market condition, firms make normal profits in the long run.$? |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Oligopoly |
| D. | None of the above |
| Answer» B. Monopoly | |
| 213. |
_Marginal revenue will be negative if elasticity of demand is$? |
| A. | Less than unity |
| B. | More than 1 |
| C. | Equal to 1 |
| D. | Equal to zero |
| Answer» B. More than 1 | |
| 214. |
_Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively$? |
| A. | Large fall in quantity demanded |
| B. | Large fall in demand |
| C. | Small fall in quantity demanded |
| D. | Small fall in demand |
| Answer» B. Large fall in demand | |
| 215. |
_The economic analysis expects the consumer to behave in a manner which is$? |
| A. | Rational |
| B. | Irrational |
| C. | Emotional |
| D. | Indifferent |
| Answer» B. Irrational | |
| 216. |
_The law of variable proportions come into being when$? |
| A. | There are only two variable factors |
| B. | There is a fixed factor and a variable factor |
| C. | All factors are variable |
| D. | Variable factors yield less |
| Answer» C. All factors are variable | |
| 217. |
_Calculate the income elasticity for a household when the income of this household rises by 5% and the demand for buttons does not change at all.$? |
| A. | Infinity |
| B. | 1 |
| C. | Zero |
| D. | 5 |
| Answer» D. 5 | |
| 218. |
_At shut down point$? |
| A. | Price is equal to AVC |
| B. | Total revenue is equal to TVC |
| C. | Total loss of the firm is equal to TFC |
| D. | All of the above |
| Answer» E. | |
| 219. |
_Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.$? |
| A. | -0.5 |
| B. | 0.5 |
| C. | -2 |
| D. | 2 |
| Answer» C. -2 | |
| 220. |
_In imperfect competition$? |
| A. | Excess capacity always exists |
| B. | Excess capacity never exists |
| C. | Excess capacity may or may not exist |
| D. | None of the above |
| Answer» B. Excess capacity never exists | |
| 221. |
_Identify the factor which generally keeps the price-elasticity of demand for a good high.$? |
| A. | Its very high price |
| B. | Its very low price |
| C. | Large number of substitutes |
| D. | None of the above |
| Answer» D. None of the above | |
| 222. |
_Total utility is maximum when$? |
| A. | Marginal utility is zero |
| B. | Marginal utility is at its highest point |
| C. | Marginal utility is equal to average |
| D. | Average utility is maximum |
| Answer» B. Marginal utility is at its highest point | |
| 223. |
_Which one of the following is the condition of equilibrium for the monopolist?$? |
| A. | MR=MC |
| B. | MC=AR |
| C. | MR=MC=Price |
| D. | AC=AR |
| Answer» B. MC=AR | |
| 224. |
_When a competitive firm achieves long run equilibrium, then,$? |
| A. | P=MC |
| B. | MR=MC |
| C. | P=ATC |
| D. | All of the above |
| Answer» E. | |
| 225. |
_A vertical supply curve parallel to the price axis implies that the elasticity of supply is$? |
| A. | Zero |
| B. | Infinity |
| C. | Equal to one |
| D. | Greater than zero but less than infinity |
| Answer» B. Infinity | |
| 226. |
_Economic rent can accrue to$? |
| A. | Land only |
| B. | Capital only |
| C. | Specialized technical personnel only |
| D. | Any of the factors of production |
| Answer» E. | |
| 227. |
_The elasticity of demand of durable goods is$? |
| A. | Less than unity |
| B. | Greater than unity |
| C. | Equal to unity |
| D. | Zero |
| Answer» C. Equal to unity | |
| 228. |
_The elasticity of substitution between two perfect substitutions is$? |
| A. | Zero |
| B. | Greater than zero |
| C. | Less than infinity |
| D. | Infinity |
| Answer» E. | |
| 229. |
_Which of the following oligopoly models is concerned with the maximization of joint profits?$? |
| A. | Price leadership model |
| B. | Bertrand's model |
| C. | Collusive model |
| D. | Edgeworth's model |
| Answer» D. Edgeworth's model | |
| 230. |
_In case of perfect competition in the market$? |
| A. | Marginal revenue curve always slopes upward |
| B. | Marginal revenue curve always slopes downwards |
| C. | Marginal revenue is always equal to average revenue |
| D. | Marginal revenue is always less than average revenue |
| Answer» D. Marginal revenue is always less than average revenue | |
| 231. |
_If price and total revenue move in the same direction, then demand is$? |
| A. | Inelastic |
| B. | Elastic |
| C. | Unrelated |
| D. | Perfectly elastic |
| Answer» B. Elastic | |
| 232. |
_The supply of a good refers to$? |
| A. | Stock available for sale |
| B. | Total stock in the warehouse |
| C. | Actual production of the good |
| D. | Quantity of the good offered for sale at a particular price per unit of time |
| Answer» E. | |
| 233. |
_In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then$? |
| A. | Price will fall |
| B. | Price remains same |
| C. | Price will rise |
| D. | Quantity rises |
| Answer» D. Quantity rises | |
| 234. |
_Fisher's ideal index number is$? |
| A. | Arithmetic mean of Laspeyre's and Paasche's index |
| B. | Harmonic mean of Laspeyre's and Paasche's index |
| C. | Geometric mean of Laspeyre's and Paasche's index |
| D. | None of the above |
| Answer» D. None of the above | |
| 235. |
_The offer curves introduced by Alfred Marshall, helps us to understand how the ___ is established in international trade.$? |
| A. | Terms of trade |
| B. | Equilibrium price ratio |
| C. | Exchange rate |
| D. | Satisfaction level |
| Answer» B. Equilibrium price ratio | |
| 236. |
_Normally a demand curve will have the shape$? |
| A. | Horizontal |
| B. | Vertical |
| C. | Downward sloping |
| D. | Upward sloping |
| Answer» D. Upward sloping | |
| 237. |
_In order to control credit, Reserve Bank of India should$? |
| A. | Increase CRR and decrease Bank rate |
| B. | Decrease CRR and reduce Bank rate |
| C. | Increase CRR and increase Bank rate |
| D. | Reduce CRR and increase Bank rate |
| Answer» D. Reduce CRR and increase Bank rate | |
| 238. |
_Which of the following is Microeconomics concerned with?$? |
| A. | The size of national output |
| B. | The level of employment |
| C. | Changes in general level of prices |
| D. | None of the above |
| Answer» E. | |
| 239. |
_A decrease in demand causes the equilibrium price to$? |
| A. | Rise |
| B. | Fall |
| C. | Remain constant |
| D. | Indeterminate |
| Answer» C. Remain constant | |
| 240. |
_This is an assumption of law of demand$? |
| A. | Price of the commodity should not change |
| B. | Quantity should not change |
| C. | Supply should not change |
| D. | Income of consumer should not change |
| Answer» E. | |
| 241. |
_Which of the following is one of the assumptions of perfect competition?$? |
| A. | Few buyers and few sellers |
| B. | Many buyers and few sellers |
| C. | Many buyers and many sellers |
| D. | All sellers and buyers are honest |
| Answer» D. All sellers and buyers are honest | |
| 242. |
_Economic problems arise because$? |
| A. | Wants are unlimited |
| B. | Resources are scarce |
| C. | Scare resources have alternative uses |
| D. | All of the above |
| Answer» E. | |
| 243. |
_Standard of living of a country can be raised if it increases$? |
| A. | Labour force |
| B. | Production |
| C. | Money supply |
| D. | Exports |
| Answer» C. Money supply | |
| 244. |
_In monopoly, the relationship between average and marginal revenue curves is as follows$? |
| A. | AR curve lies above the MR curve |
| B. | AR curve coincides with the MR curve |
| C. | AR curve lies below the MR curve |
| D. | AR curve is parallel to the MR curve |
| Answer» B. AR curve coincides with the MR curve | |
| 245. |
_Which among the following statement is INCORRECT?$? |
| A. | On a linear demand curve, all the five forms of elasticity can be depicted |
| B. | If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection. |
| C. | If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves. |
| D. | The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded. |
| Answer» C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves. | |
| 246. |
_Positive income elasticity implies that as income rises, demand for the commodity$? |
| A. | Rises |
| B. | Falls |
| C. | Remains unchanged |
| D. | Becomes Zero |
| Answer» B. Falls | |
| 247. |
Economic development of a country requires$? |
| A. | Skilled labour |
| B. | Diplomacy |
| C. | Abundant natural resources |
| D. | a' and 'c' both |
| Answer» E. | |
| 248. |
Profits$? |
| A. | Are lower in the long run than in the short run |
| B. | Can be negative |
| C. | Are less in perfect competition than in monopoly |
| D. | All of the above |
| Answer» E. | |
| 249. |
Quality of a commodity that satisfies some human want or need is called$? |
| A. | Service |
| B. | Demand |
| C. | Utility |
| D. | Efficiency |
| Answer» D. Efficiency | |
| 250. |
Demand curve slopes downward because of the law of$? |
| A. | Consumer equilibrium |
| B. | Utility maximization |
| C. | Utility minimization |
| D. | Diminishing marginal utility |
| Answer» E. | |