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.
| 251. |
A market structure in which many firms sell products that are similar but not identical is known as$? |
| A. | Monopolistic competition |
| B. | Monopoly |
| C. | Perfect competition |
| D. | Oligopoly |
| Answer» B. Monopoly | |
| 252. |
A competitive firm maximizes profit at the output level where$? |
| A. | Price equals marginal cost |
| B. | The slope of the firm's profit function is equal to zero |
| C. | Marginal revenue equals marginal cost |
| D. | All of the above |
| Answer» E. | |
| 253. |
If two goods were perfect substitutes of each other, it necessarily follows that$? |
| A. | An indifference curve relating the two goods will be curvilinear |
| B. | An indifference curve relating the two goods will be linear |
| C. | An indifference curve relating the two goods will be divided into two segments which meet at a right angle |
| D. | An indifference curve relating the two goods will be convex to the origin |
| Answer» C. An indifference curve relating the two goods will be divided into two segments which meet at a right angle | |
| 254. |
Rational decision making requires that$? |
| A. | One's choices be arrived at logically and without errors |
| B. | One's choices be consistent with one's goals |
| C. | One's choices never vary |
| D. | One makes choices that do not involve trade offs |
| Answer» C. One's choices never vary | |
| 255. |
The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of$? |
| A. | Law of demand |
| B. | Law of diminishing returns |
| C. | Law of diminishing marginal utility |
| D. | Law of supply |
| Answer» D. Law of supply | |
| 256. |
Under which market structure, average revenue of a firm is equal to its marginal revenue$? |
| A. | Oligopoly |
| B. | Monopoly |
| C. | Perfect competition |
| D. | Monopolistic competition |
| Answer» D. Monopolistic competition | |
| 257. |
The law of consumer surplus is based on$? |
| A. | Indifference curve analysis |
| B. | Revealed preference theory |
| C. | Law of substitution |
| D. | The law of diminishing marginal utility |
| Answer» E. | |
| 258. |
If income elasticity for a good is 2, then it is a$? |
| A. | Necessity item |
| B. | Inferior good |
| C. | Luxury item |
| D. | Comfortable item |
| Answer» D. Comfortable item | |
| 259. |
When price is below equilibrium level, there will be$? |
| A. | Surplus commodity in the market |
| B. | Shortage of commodity in the market |
| C. | Supply curve will shift |
| D. | Demand curve will shift |
| Answer» C. Supply curve will shift | |
| 260. |
The cost on one thing in terms of the alternative given up is known as$? |
| A. | Production cost |
| B. | Physical cost |
| C. | Real cost |
| D. | Opportunity cost |
| Answer» E. | |
| 261. |
Price of a product is determined in a free market by$? |
| A. | Demand for the product |
| B. | Supply of the product |
| C. | Both demand and supply |
| D. | The government |
| Answer» D. The government | |
| 262. |
Ten rupees is the equilibrium price for good X. If government fixes the price at Rs.5, there is$? |
| A. | A shortage |
| B. | A surplus |
| C. | Excess supply |
| D. | Loss |
| Answer» B. A surplus | |
| 263. |
Indifference curves are convex to the origin because$? |
| A. | Two goods are perfect substitutes |
| B. | Two goods are imperfect substitutes |
| C. | Two goods are perfect complementary goods |
| D. | None of the above |
| Answer» C. Two goods are perfect complementary goods | |
| 264. |
When the perfectly competitive firm and industry are in long run equilibrium, then$? |
| A. | P = MR = SAC = LAC |
| B. | D = MR = SMC = LMC |
| C. | P = MR = Lowest point on the LAC curve |
| D. | All of the above |
| Answer» E. | |
| 265. |
In long run equilibrium, the pure monopolist can make pure profits because of$? |
| A. | Blocked entry |
| B. | The high price he charges |
| C. | The low LAC costs |
| D. | Advertising |
| Answer» B. The high price he charges | |
| 266. |
Which is the first-order condition for the profit of a firm to be maximum?$? |
| A. | AC=MR |
| B. | MC=MR |
| C. | MR=AR |
| D. | AC=AR |
| Answer» C. MR=AR | |
| 267. |
A firm should shut down in the short run if it is not covering its$? |
| A. | Variable cost |
| B. | Fixed cost |
| C. | Total cost |
| D. | Explicit cost (money outlays) |
| Answer» B. Fixed cost | |
| 268. |
Income elasticity of demand is defined as the responsiveness of$? |
| A. | Quantity demanded to a change in income |
| B. | Quantity demanded to a change in price |
| C. | Price to a change in income |
| D. | Income to a change in quantity demanded |
| Answer» B. Quantity demanded to a change in price | |
| 269. |
In which of the following market structure is the degree of control over the price of its product by a firm very large?$? |
| A. | Imperfect competition |
| B. | Perfect competition |
| C. | Monopoly |
| D. | In A and B both |
| Answer» D. In A and B both | |
| 270. |
Which statistical measure helps in measuring the purchasing power of money?$? |
| A. | Arithmetic average |
| B. | Index numbers |
| C. | Harmonic mean |
| D. | Time series |
| Answer» C. Harmonic mean | |
| 271. |
____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks$? |
| A. | Repo rate |
| B. | Bank rate |
| C. | Prime lending rate |
| D. | Reverse repo rate |
| Answer» C. Prime lending rate | |
| 272. |
What is meant by Autarky in international trade?$? |
| A. | Monopoly in international trade |
| B. | Imposition of restrictions in international trade |
| C. | Removal of all restrictions from international trade |
| D. | The idea of self sufficiency and no international trade by a country |
| Answer» E. | |
| 273. |
Which of the following is NOT a feature of iso-product curve? Iso-product curves$? |
| A. | Are downward sloping to the right |
| B. | Show different input combination producing the same output |
| C. | Intersect each other |
| D. | Are convex to the origin |
| Answer» D. Are convex to the origin | |
| 274. |
If quantity demanded is completely unresponsive to changes in price, demand is$? |
| A. | Inelastic |
| B. | Unit elastic |
| C. | Elastic |
| D. | Perfectly inelastic |
| Answer» E. | |
| 275. |
What is the shape of the average fixed cost (AFC) curve?$? |
| A. | U-shape |
| B. | Horizontal up to a point and then rising |
| C. | Sloping down towards the right |
| D. | Rectangular hyperbola |
| Answer» E. | |
| 276. |
When indifference curve is L shaped, then two goods will be$? |
| A. | Perfect substitute goods |
| B. | Substitute goods |
| C. | Perfect complementary goods |
| D. | Complementary goods |
| Answer» D. Complementary goods | |
| 277. |
The exception to law of demand is$? |
| A. | Veblen goods |
| B. | Giffen goods |
| C. | Both 'a' and 'b' |
| D. | None |
| Answer» D. None | |
| 278. |
Which of the following are sources of growth?$? |
| A. | Natural resources |
| B. | Human capital |
| C. | Physical capital |
| D. | All of the above |
| Answer» E. | |
| 279. |
Under Marginal utility analysis, utility is assumed to be a$? |
| A. | Cardinal concept |
| B. | Ordinal concept |
| C. | Indeterminate concept |
| D. | None of the above |
| Answer» B. Ordinal concept | |
| 280. |
A monopolist is able to maximize his profits when$? |
| A. | His output is maximum |
| B. | He charges high price |
| C. | His average cost is minimum |
| D. | His marginal cost is equal to marginal revenue |
| Answer» E. | |
| 281. |
If marginal opportunity cost is falling, the PPF would be$? |
| A. | Straight line |
| B. | Concave |
| C. | Backward leading |
| D. | Convex |
| Answer» E. | |
| 282. |
Which of the following is a cause of an economic problem?$? |
| A. | Scarcity of resources |
| B. | Alternative uses |
| C. | Unlimited wants |
| D. | All of the above |
| Answer» E. | |
| 283. |
Quantity demanded is a$? |
| A. | Flow concept |
| B. | Stock concept |
| C. | Both 'a' and 'b' |
| D. | None of the above |
| Answer» B. Stock concept | |
| 284. |
If the goods are complementary like car and petrol, their cross elasticity is$? |
| A. | Negative |
| B. | Positive |
| C. | Zero |
| D. | Infinite |
| Answer» B. Positive | |
| 285. |
The classical theory explained interest as a reward for$? |
| A. | Parting with liquidity |
| B. | Abstinence |
| C. | Saving |
| D. | Inconvenience |
| Answer» D. Inconvenience | |
| 286. |
A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as$? |
| A. | Surplus value |
| B. | Quasi-rent |
| C. | Transfer earnings |
| D. | Super normal profits |
| Answer» C. Transfer earnings | |
| 287. |
The supply of a commodity refers to$? |
| A. | Actual production of the commodity |
| B. | Total existing stock of the commodity |
| C. | Stock available for sale |
| D. | Amount of the commodity offered for sale at a particular price per unit of time |
| Answer» E. | |
| 288. |
Supply curve is$? |
| A. | Vertical in long run |
| B. | Flatter in ling run |
| C. | Same in long and short run |
| D. | Horizontal in both short and long run |
| Answer» C. Same in long and short run | |
| 289. |
Unemployment of labour means that$? |
| A. | A worker does not get full time job |
| B. | A worker is not happy with his present job |
| C. | A person does not get job according to his qualification |
| D. | a' and 'c' both |
| Answer» E. | |
| 290. |
He described economics as a science of material welfare$? |
| A. | Robbins |
| B. | Marshall |
| C. | Ricardo |
| D. | Keynes |
| Answer» C. Ricardo | |
| 291. |
A firm earns economic profit when total profit exceeds$? |
| A. | Normal profit |
| B. | Implicit costs |
| C. | Explicit costs |
| D. | Variable costs |
| Answer» B. Implicit costs | |
| 292. |
Under law of demand$? |
| A. | Price of commodity is an independent variable |
| B. | Quantity demanded is a dependent variable |
| C. | Reciprocal relationship is found between price and quantity demanded |
| D. | All of the above |
| Answer» E. | |
| 293. |
In Monopoly at various output levels$? |
| A. | AR=MR |
| B. | AR< label=""> <> |
| C. | AR>MR |
| D. | None of the above |
| Answer» B. AR< label=""> <> | |
| 294. |
Excise tax is a part of$? |
| A. | Fixed cost |
| B. | Variable cost |
| C. | Implicit cost |
| D. | Is not a part of cost |
| Answer» C. Implicit cost | |
| 295. |
Marginal utility is equal to average utility at that time when average utility is$? |
| A. | Increasing |
| B. | Maximum |
| C. | Falling |
| D. | Minimum |
| Answer» C. Falling | |
| 296. |
Which of the following bodies finalizes the Five Year Plan Proposals?$? |
| A. | Planning Commission |
| B. | Union Cabinet |
| C. | National Development Council |
| D. | Ministry of Planning |
| Answer» D. Ministry of Planning | |
| 297. |
Who propounded the opportunity cost theory of international trade?$? |
| A. | Ricardo |
| B. | Marshall |
| C. | Heckscher & Ohlin |
| D. | Haberler |
| Answer» E. | |
| 298. |
Land only? |
| A. | Is a free gift of nature |
| B. | Lacks geographical mobility |
| C. | Is not hirable |
| D. | a' and 'b' both |
| Answer» E. | |
| 299. |
Who first raised the fear of a world food shortage?? |
| A. | David Ricardo |
| B. | T.R.Malthus |
| C. | J.S.Mill |
| D. | J.B.Say |
| Answer» C. J.S.Mill | |
| 300. |
Human wants are? |
| A. | One thousand |
| B. | Few |
| C. | Few Innumerable |
| D. | Countable |
| Answer» D. Countable | |