MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
In the above function, the letters Ps stands for |
| A. | Preference of consumers |
| B. | Price of commodity |
| C. | Price of substitutes |
| D. | Product supply |
| Answer» D. Product supply | |
| 252. |
D = f (P, Y, T, Ps, U),where the letter U stands for |
| A. | Utility |
| B. | Units of consumption |
| C. | Usage |
| D. | Consumer expectation & others |
| Answer» E. | |
| 253. |
…………….means relationship between demand and its various determinants expressed mathematically |
| A. | Demand extension |
| B. | Demand contraction |
| C. | Demand analysis |
| D. | Demand function |
| Answer» E. | |
| 254. |
The relationship between price and quantity demanded is |
| A. | Direct |
| B. | Inverse |
| C. | Linear |
| D. | Non‐linear |
| Answer» C. Linear | |
| 255. |
Law of demand shows the functional relationship between ………….and quantity demanded |
| A. | Supply |
| B. | Cost |
| C. | Price |
| D. | Requirements |
| Answer» D. Requirements | |
| 256. |
Demand =Desires+ …………… +willingness to pay |
| A. | Supply |
| B. | utility |
| C. | Want |
| D. | Purchasing power |
| Answer» E. | |
| 257. |
………… is known as the ‘first law in market” |
| A. | Law of supply |
| B. | Law of consumption |
| C. | Law of demand |
| D. | Law of production |
| Answer» D. Law of production | |
| 258. |
………… means an attempt to determine the factors affecting the demand of a commodity or serviceand to measure such factors and their influences |
| A. | Demand planning |
| B. | Demand forecasting |
| C. | Demand analysis |
| D. | Demand estimation |
| Answer» D. Demand estimation | |
| 259. |
The demand has three essentials‐ Desire, Purchasing power and ……….. |
| A. | Quantity |
| B. | Cash |
| C. | Supply |
| D. | Willingness to purchase |
| Answer» E. | |
| 260. |
“…………in economics means demand backed up by enough money to pay for the goods demanded” |
| A. | Utility |
| B. | Consumption |
| C. | Supply |
| D. | Demand |
| Answer» E. | |
| 261. |
………..principle is closely related to the marginal costs and marginal revenue of economic theory |
| A. | Principle of time perspective |
| B. | Equi‐marginal principle |
| C. | Incremental principle |
| D. | None of these |
| Answer» D. None of these | |
| 262. |
Basic economic tools of managerial economics include |
| A. | Opportunity cost principle |
| B. | Incremental principle |
| C. | Discounting principle |
| D. | All of the above |
| Answer» E. | |
| 263. |
Which of the following is not a function of managerial economist |
| A. | Analysis of under developed economies |
| B. | Capital project appraisal |
| C. | Advice on primary commodities |
| D. | None of these |
| Answer» E. | |
| 264. |
Which of the following is not a function of managerial economists |
| A. | Advice on trade and public relations |
| B. | Economic analysis of agriculture |
| C. | Investment analysis |
| D. | Supervision and control |
| Answer» E. | |
| 265. |
Which of the following is included in specific functions of managerial economists |
| A. | Economic analysis of competing companies |
| B. | Advice on pricing problems of industry |
| C. | Environmental forecasting |
| D. | All of the above |
| Answer» E. | |
| 266. |
Which of the following is not included in functions of managerial economists |
| A. | Sales forecasting |
| B. | Industrial market research |
| C. | Advice on foreign exchange |
| D. | None of the above |
| Answer» E. | |
| 267. |
Which is the characteristics of managerial economics |
| A. | Deals with both micro and macro aspects |
| B. | Both positive and normative science |
| C. | Deals with theoretical aspects |
| D. | Deals with practical aspects. |
| Answer» E. | |
| 268. |
………….is economic theory used in business whereas ……….is economics theory used in business andnon business organization |
| A. | Micro economics, macro economics |
| B. | Business economics, managerial economics |
| C. | Positive economics and normative economics |
| D. | None of these |
| Answer» C. Positive economics and normative economics | |
| 269. |
Which one is not a characteristics of managerial economics |
| A. | Micro economics |
| B. | Normative science |
| C. | Positive science |
| D. | Pragmatic |
| Answer» D. Pragmatic | |
| 270. |
Allocation of available resources among alternatives is based on the principle |
| A. | Opportunity cost principle |
| B. | Discounting principle |
| C. | Equi‐marginal principle |
| D. | None of these |
| Answer» D. None of these | |
| 271. |
The techniques of optimization include |
| A. | Marginal analysis |
| B. | Calculus |
| C. | Linear programming |
| D. | All of the above |
| Answer» E. | |
| 272. |
Macro economic theory is also called as |
| A. | Demand theory |
| B. | Price theory |
| C. | Income theory |
| D. | None of these |
| Answer» D. None of these | |
| 273. |
………….is micro economic theory |
| A. | Demand theory |
| B. | Price theory |
| C. | Income theory |
| D. | None of these |
| Answer» C. Income theory | |
| 274. |
Decision making and ‐‐‐‐‐‐‐‐are the two important functions of executive of business firms |
| A. | Forward planning |
| B. | Directing |
| C. | Supervising |
| D. | Administration |
| Answer» B. Directing | |
| 275. |
“ A rupee tomorrow is worth less than a rupee today” relates to |
| A. | Opportunity cost principle |
| B. | Discounting principle |
| C. | Equi‐marginal principle |
| D. | None of these |
| Answer» C. Equi‐marginal principle | |
| 276. |
Economics was classified into micro and macro by |
| A. | Ragnar Frisch |
| B. | Adam Smith |
| C. | J M Keynes |
| D. | A C Pigou |
| Answer» B. Adam Smith | |
| 277. |
Who is regarded as a father of Business Economics |
| A. | Joel Dean |
| B. | Adam Smith |
| C. | J M Keynes |
| D. | Ragnar Frisch |
| Answer» B. Adam Smith | |
| 278. |
Modern definition is also called as |
| A. | Growth definition |
| B. | Welfare definition |
| C. | scarcity definition |
| D. | Neoclassical definition |
| Answer» B. Welfare definition | |
| 279. |
Iso-cost line indicate the price of |
| A. | output |
| B. | inputs |
| C. | finished goods |
| D. | raw material |
| Answer» C. finished goods | |
| 280. |
A graph indicating different combination of inputs with different level of output iscalled |
| A. | iso-cost map |
| B. | bep map |
| C. | input-output map |
| D. | iso-quant map |
| Answer» E. | |
| 281. |
------------ is situation with increased investment and increased price |
| A. | recession |
| B. | progress |
| C. | boom |
| D. | recovery |
| Answer» D. recovery | |
| 282. |
------------ is situation of severely falling prices and lowest level of economic activities |
| A. | boom |
| B. | recovery |
| C. | recession |
| D. | depression |
| Answer» E. | |
| 283. |
A cost that has already been committed and cannot be recovered known as: |
| A. | sunk cost |
| B. | total cost |
| C. | full cost |
| D. | variable cost |
| Answer» B. total cost | |
| 284. |
The concept of monopsony was invented by: |
| A. | marshall |
| B. | ap. learner |
| C. | chamberlin |
| D. | mrs. j. robinson |
| Answer» E. | |
| 285. |
The architect of the theory of monopolistic competition |
| A. | rosenstein roden |
| B. | jr hicks |
| C. | karl marx |
| D. | chamberlin |
| Answer» E. | |
| 286. |
The concept of product differentiation was introduced by |
| A. | tr malthus |
| B. | jm keynes |
| C. | mrs. robinson |
| D. | chamberlin |
| Answer» E. | |
| 287. |
Firms under perfectly competitive markets generally are |
| A. | price makers |
| B. | price givers |
| C. | price taker |
| D. | none of these |
| Answer» B. price givers | |
| 288. |
The quantity of product X supplied can be expected to rise with a fall in: |
| A. | prices of competing products |
| B. | price of x |
| C. | energy savings technical charge |
| D. | input prices |
| Answer» C. energy savings technical charge | |
| 289. |
The effect on sales of an increase in price is a decrease in: |
| A. | the quantity demanded |
| B. | demand |
| C. | supply |
| D. | the quantity supplied |
| Answer» C. supply | |
| 290. |
Surplus is a condition of: |
| A. | excess supply |
| B. | a deficiency in supply |
| C. | market equilibrium |
| D. | excess demand |
| Answer» B. a deficiency in supply | |
| 291. |
If all resources used in the production of a product are increased by 20 percent andoutput increases by 20 percent, then there must be: |
| A. | economies of scale. |
| B. | diseconomies of scale. |
| C. | constant returns to scale. |
| D. | increasing average total costs. |
| Answer» D. increasing average total costs. | |
| 292. |
The larger the diameter of a natural gas pipeline, the lower is the average total cost oftransmitting 1,000 cubic feet of gas 1,000 miles. This is an example of: |
| A. | economies of scale. |
| B. | normative economies. |
| C. | diminishing marginal returns. |
| D. | an increasing marginal product of labour. |
| Answer» B. normative economies. | |
| 293. |
When a firm doubles its inputs and finds that its output has more than doubled, this isknown 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. | |
| 294. |
A firm encountering economies of scale over some range of output will have a: |
| A. | rising long-run average cost curve. |
| B. | falling long-run average cost curve. |
| C. | constant long-run average cost curve. |
| D. | rising, then falling, then rising long-run average cost curve. |
| Answer» C. constant long-run average cost curve. | |
| 295. |
The firm's short-run marginal-cost curve is increasing when: |
| A. | marginal product is increasing. |
| B. | marginal product is decreasing. |
| C. | total fixed cost is increasing. |
| D. | average fixed cost is decreasing. |
| Answer» C. total fixed cost is increasing. | |
| 296. |
If a more efficient technology was discovered by a firm, there would be: |
| A. | an upward shift in the avc curve. |
| B. | an upward shift in the afc curve. |
| C. | a downward shift in the afc curve. |
| D. | a downward shift in the mc curve. |
| Answer» E. | |
| 297. |
If the short-run average variable costs of production for a firm are rising, then thisindicates that: |
| A. | average total costs are at a maximum. |
| B. | average fixed costs are constant. |
| C. | marginal costs are above average variable costs. |
| D. | average variable costs are below average fixed costs. |
| Answer» D. average variable costs are below average fixed costs. | |
| 298. |
The reason the marginal cost curve eventually increases as output increases for thetypical firm is because: |
| A. | of diseconomies of scale. |
| B. | of minimum efficient scale. |
| C. | of the law of diminishing returns. |
| D. | normal profit exceeds economic profit. |
| Answer» D. normal profit exceeds economic profit. | |
| 299. |
Variable costs are: |
| A. | sunk costs. |
| B. | multiplied by fixed costs. |
| C. | costs that change with the level of production. |
| D. | defined as the change in total cost resulting from the production of an additional |
| Answer» D. defined as the change in total cost resulting from the production of an additional | |
| 300. |
When the total product curve is falling, the: |
| A. | marginal product of labour is zero. |
| B. | marginal product of labour is negative. |
| C. | average product of labour is increasing. |
| D. | average product of labour must be negative. |
| Answer» C. average product of labour is increasing. | |