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.
| 351. |
Some economists say that profit earner is a kind of |
| A. | Rent receiver |
| B. | Interest receiver |
| C. | Wage earner |
| D. | Government officer |
| Answer» D. Government officer | |
| 352. |
According to Keynes, interest is a payment for |
| A. | Use of durable goods |
| B. | Use of capital |
| C. | Use of money |
| D. | Use of land |
| Answer» D. Use of land | |
| 353. |
When a market is in equilibrium |
| A. | No shortage exists |
| B. | Quantity demanded equals quantity supplied |
| C. | A price is established that clears the market |
| D. | All of the above are correct |
| Answer» E. | |
| 354. |
In the short run if a perfectly competitive firm finds itself operating at a loss, it will |
| A. | Reduce the size of its plant to lower fixed costs |
| B. | Raise the price of its product |
| C. | Shut down |
| D. | Continue to operate as long as it covers its variable cost |
| Answer» E. | |
| 355. |
Supply of a commodity is a |
| A. | Stock concept |
| B. | Flow concept |
| C. | Both stock and flow concept |
| D. | None of the above |
| Answer» C. Both stock and flow concept | |
| 356. |
The various combination of goods that can be produced in any economy when it uses its available resources and technology efficiency are depicted by |
| A. | Demand curve |
| B. | Production curve |
| C. | Supply curve |
| D. | Production possibility curve |
| Answer» E. | |
| 357. |
Demand for intermediate consumption arises in |
| A. | Household sector only |
| B. | Government sector only |
| C. | Corporate sector only |
| D. | All producing sectors of the economy |
| Answer» E. | |
| 358. |
The structure of the cold drink industry in India is best described as |
| A. | Perfectly competitive |
| B. | Monopoly |
| C. | Oligopoly |
| D. | Monopolistically competitive |
| Answer» E. | |
| 359. |
In the case of a Giffen good, the demand curve will be |
| A. | Horizontal |
| B. | Downward to the right |
| C. | Upward to the right |
| D. | Vertical |
| Answer» D. Vertical | |
| 360. |
If the price of good A increases relative to the price of substitutes B and C, the demand for |
| A. | B will increase |
| B. | C will increase |
| C. | Both B and C will increase |
| D. | B and C will decrease |
| Answer» D. B and C will decrease | |
| 361. |
An increase in the supply of a commodity is caused by |
| A. | Improvements in technology |
| B. | Fall in the prices of other commodities |
| C. | Fall in the prices of factors of production |
| D. | All of the above |
| Answer» E. | |
| 362. |
When demand is perfectly inelastic, an increase in price will result in |
| A. | A decrease in total revenue |
| B. | An increase in total revenue |
| C. | No change in total revenue |
| D. | A decrease in quantity demanded |
| Answer» C. No change in total revenue | |
| 363. |
According to M. Kalecki, the true measure of the degree of monopoly power is the |
| A. | Ratio between price and marginal cost |
| B. | Extent of monopolistic profit enjoyed by the monopolist |
| C. | Cross-elasticity of demand for the product of the monopolist |
| D. | Price charged by the monopolist minus marginal cost of production |
| Answer» B. Extent of monopolistic profit enjoyed by the monopolist | |
| 364. |
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 | |
| 365. |
What is the shape of the demand curve faced by a firm under perfect competition? |
| A. | Horizontal |
| B. | Vertical |
| C. | Positively sloped |
| D. | Negatively sloped |
| Answer» B. Vertical | |
| 366. |
Suppose the total cost of producing commodity X is Rs.125000. Out of this cost, implicit cost is Rs.35000 and normal profit is Rs.25000. What will be the explicit cost of commodity X? |
| A. | Rs.90000 |
| B. | Rs.65000 |
| C. | Rs.60000 |
| D. | Rs.100000 |
| Answer» C. Rs.60000 | |
| 367. |
Demand curve can be derived from |
| A. | MU curve |
| B. | PCC |
| C. | Both 'a' and 'b' |
| D. | None |
| Answer» D. None | |
| 368. |
The 'Diamond water' controversy is explained by |
| A. | Total utility |
| B. | Marginal utility |
| C. | Price offered |
| D. | Quantity supplied |
| Answer» C. Price offered | |
| 369. |
The average total cost pf producing 50 units is Rs.250 and total fixed cost is Rs.1000. What is the average fixed cost of producing 100 units? |
| A. | Rs.10 |
| B. | Rs.30 |
| C. | Rs.20 |
| D. | Rs.5 |
| Answer» B. Rs.30 | |
| 370. |
Which is NOT a cause of shift in cost curves of a firm? |
| A. | Excise tax |
| B. | Prices of inputs |
| C. | Increase in productivity |
| D. | Price of product |
| Answer» E. | |
| 371. |
Economies of scale are of two kinds |
| A. | Temporary and permanent |
| B. | Internal and external |
| C. | Managerial and industrial |
| D. | Natural and artificial |
| Answer» C. Managerial and industrial | |
| 372. |
As for the cost of production of an individual farmer, the rent paid by him |
| A. | Enters into the price of his product |
| B. | Does not enter into price of his product |
| C. | Is unjustified |
| D. | None of the above |
| Answer» B. Does not enter into price of his product | |
| 373. |
When was Adam Smith's major work "An enquiry into the Nature and Causes of Wealth of Nations" published? |
| A. | 1756 |
| B. | 1766 |
| C. | 1776 |
| D. | 1786 |
| Answer» D. 1786 | |
| 374. |
Identify the author of "The principles of Political Economy and Taxation" |
| A. | Alfred Marshall |
| B. | J.S.Mill |
| C. | David Ricardo |
| D. | A. Turgot |
| Answer» D. A. Turgot | |
| 375. |
When marginal is negative, it must be true that |
| A. | The average is negative |
| B. | The average is decreasing |
| C. | The total is negative |
| D. | The total is decreasing |
| Answer» E. | |
| 376. |
A consumer is in equilibrium when marginal utilities are |
| A. | Minimum |
| B. | Highest |
| C. | Equal |
| D. | Increasing |
| Answer» D. Increasing | |
| 377. |
The cost which a firm incurs for purchasing or hiring factors is called |
| A. | Implicit |
| B. | Explicit |
| C. | Real |
| D. | Nominal |
| Answer» C. Real | |
| 378. |
The shape of rectangular hyperbola is made by |
| A. | MC |
| B. | AFC |
| C. | AVC |
| D. | None of the above |
| Answer» C. AVC | |
| 379. |
Profit is maximum when |
| A. | Distance between TR and TC is maximum |
| B. | Distance between AR and AC is maximum |
| C. | Distance between MR and MC is maximum |
| D. | None of the above |
| Answer» B. Distance between AR and AC is maximum | |
| 380. |
Passive factor of production is |
| A. | Only Land |
| B. | Only Capital |
| C. | Both Land & Capital |
| D. | Neither Land nor Capital |
| Answer» D. Neither Land nor Capital | |
| 381. |
Utility means |
| A. | Power to satisfy a want |
| B. | Usefulness |
| C. | Willingness of a person |
| D. | Harmfulness |
| Answer» B. Usefulness | |
| 382. |
Which of the following is a producer good? |
| A. | Pen |
| B. | Cycle |
| C. | Mobile phone |
| D. | Hammer |
| Answer» E. | |
| 383. |
Ceteris Paribus means |
| A. | Other things remaining same |
| B. | All variables are independent |
| C. | Enable economists to simplify reality |
| D. | That no other assumptions are made |
| Answer» B. All variables are independent | |
| 384. |
According to Marshall, the basis of consumer surplus is |
| A. | Law of diminishing MU |
| B. | Law of Equi-MU |
| C. | Law of proportions |
| D. | All of the above |
| Answer» B. Law of Equi-MU | |
| 385. |
Which one of the following is true about Planning Commission? |
| A. | It is a Ministry |
| B. | It is a Government Department |
| C. | It is an Advisory Body |
| D. | It is an Autonomous Corporation |
| Answer» D. It is an Autonomous Corporation | |
| 386. |
The average profit is the difference between |
| A. | AC and TC |
| B. | AC and VC |
| C. | AC and AR |
| D. | AC and TR |
| Answer» D. AC and TR | |
| 387. |
If a good is a luxury, its income elasticity of demand is |
| A. | Positive and less than 1 |
| B. | Negative but greater than 1 |
| C. | Positive and greater than 1 |
| D. | Zero |
| Answer» D. Zero | |
| 388. |
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is |
| A. | Zero |
| B. | Infinite |
| C. | Equal to 1 |
| D. | Greater than 0 but less than 1 |
| Answer» C. Equal to 1 | |
| 389. |
The AR curve and industry demand curve are same in case of |
| A. | Monopoly |
| B. | Oligopoly |
| C. | Perfect competition |
| D. | None of the above |
| Answer» B. Oligopoly | |
| 390. |
A frim has variable cost of Rs.1000 at 5 units of output. If fixed costs are Rs.400, what will be the average total cost at 5 units of output? |
| A. | 380 |
| B. | 280 |
| C. | 60 |
| D. | 400 |
| Answer» C. 60 | |
| 391. |
Effective demand depends upon |
| A. | Desire for the commodity |
| B. | Means to purchase |
| C. | Willingness to use those means for that purchase |
| D. | All of the above |
| Answer» E. | |
| 392. |
If firm's average cost curve is falling then marginal curve must be |
| A. | Falling |
| B. | Rising |
| C. | Below average cost curve |
| D. | None of the above |
| Answer» D. None of the above | |
| 393. |
Product differentiation is the most important feature of |
| A. | Monopolistic competition |
| B. | Monopoly |
| C. | Oligopoly |
| D. | Perfect competition |
| Answer» B. Monopoly | |
| 394. |
Normal goods have |
| A. | Positive income elasticity |
| B. | Negative income elasticity |
| C. | Fluctuating income elasticity |
| D. | Zero income elasticity |
| Answer» B. Negative income elasticity | |
| 395. |
Which of the following markets comes closest to perfect market? |
| A. | Wheat market |
| B. | Cigarette market |
| C. | Cold drinks market |
| D. | Stock market |
| Answer» B. Cigarette market | |
| 396. |
When price elasticity of demand for normal goods is calculated, the value is always |
| A. | Positive |
| B. | Negative |
| C. | Constant |
| D. | Greater than 1 |
| Answer» C. Constant | |
| 397. |
Which cost increases continuously with the increase in production? |
| A. | Avearge cost |
| B. | Marginal cost |
| C. | Fixed cost |
| D. | Variable cost |
| Answer» E. | |
| 398. |
Which of the following cost curves is never U-shaped? |
| A. | Average cost curve |
| B. | Marginal cost curve |
| C. | Average variable cost curve |
| D. | Average fixed cost curve |
| Answer» E. | |
| 399. |
Normal profit is called normal because |
| A. | It is neither very high nor very low |
| B. | It is minimum acceptable to the producer |
| C. | It is minimum which buyer wants to pay |
| D. | It is the maximum allowed by government |
| Answer» C. It is minimum which buyer wants to pay | |
| 400. |
During a particular year, farmers experienced a dry weather. If all the otherr factors remain constant, farmers supply curve for wheat will shift |
| A. | Rightward |
| B. | Leftward |
| C. | Upward |
| D. | None of the above |
| Answer» C. Upward | |