MCQOPTIONS
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MCQOPTIONS
This section includes 373 Mcqs, each offering curated multiple-choice questions to sharpen your 12th knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
In a perfectly competitive market |
| A. | irm is the price giver and industry the price taker |
| B. | irm is the price taker and industry the price giver |
| C. | oth are price takers |
| D. | one of the above |
| Answer» C. oth are price takers | |
| 52. |
In long-run, all firms in monopolistic competition |
| A. | arn supernormal profits |
| B. | arn normal profits |
| C. | ncur losses |
| D. | ay earn normal profit, super normal profit or incur losses |
| Answer» C. ncur losses | |
| 53. |
In short run, a firm in monopolistic competition |
| A. | lways earns profits |
| B. | ncurs losses |
| C. | arns normal profit only |
| D. | ay earn normal profit, super normal profit or incur losses |
| Answer» E. | |
| 54. |
Consumer's surplus left with the consumer under price discrimination is |
| A. | aximum |
| B. | inimum |
| C. | ero |
| D. | ot predictable |
| Answer» D. ot predictable | |
| 55. |
Discriminating monopoly is possible if two markets have |
| A. | ising cost curves |
| B. | ising and declining cost curves |
| C. | ifferent elasticity of demand |
| D. | qual elasticity of demand |
| Answer» D. qual elasticity of demand | |
| 56. |
The degree of monopoly power is measured in terms of difference between |
| A. | arginal cost and the price |
| B. | arginal cost and average revenue |
| C. | arginal cost and average cost |
| D. | arginal revenue and average cost |
| Answer» B. arginal cost and average revenue | |
| 57. |
The 'substitution effect' takes place due to change in |
| A. | ncome of the consumers |
| B. | rices of the commodity |
| C. | elative prices of the commodities |
| D. | ll of the above |
| Answer» D. ll of the above | |
| 58. |
Under Marginal utility analysis, utility is assumed to be a |
| A. | ardinal concept |
| B. | rdinal concept |
| C. | ndeterminate concept |
| D. | one of the above |
| Answer» B. rdinal concept | |
| 59. |
The average total cost pf producing50 units is Rs.250 and total fixed cost is Rs.1000. What is the average fixed cost of producing 100 units? |
| A. | s.10 |
| B. | s.30 |
| C. | s.20 |
| D. | s.5 |
| Answer» B. s.30 | |
| 60. |
In the case of two perfect substitutes, the indifference curve will be |
| A. | traight line |
| B. | -shaped |
| C. | -shaped |
| D. | -shaped |
| Answer» B. -shaped | |
| 61. |
A higher indifference curve shows |
| A. | higher level of satisfaction |
| B. | higher level of production |
| C. | higher level of income |
| D. | one of the above |
| Answer» B. higher level of production | |
| 62. |
The IC curve approach assumes |
| A. | ationality |
| B. | onsistency |
| C. | ransitivity |
| D. | ll of the above |
| Answer» E. | |
| 63. |
Which of the following are sources of growth? |
| A. | atural resources |
| B. | uman capital |
| C. | hysical capital |
| D. | ll of the above |
| Answer» E. | |
| 64. |
If the income elasticity is greater than one, the commodity is |
| A. | ecessity item |
| B. | uxury item |
| C. | nferior good |
| D. | one |
| Answer» C. nferior good | |
| 65. |
Price discrimination is not possible in case of |
| A. | erfect competition |
| B. | onopoly |
| C. | onopolistic competition |
| D. | ligopoly |
| Answer» B. onopoly | |
| 66. |
The exception to law of demand is |
| A. | eblen goods |
| B. | iffen goods |
| C. | oth 'a' and 'b' |
| D. | one |
| Answer» D. one | |
| 67. |
If all inputs are trebled and the resultant output is doubled, this is a case of |
| A. | onstant returns to scale |
| B. | ncreasing returns to scale |
| C. | iminishing returns to scale |
| D. | egative returns to scale |
| Answer» D. egative returns to scale | |
| 68. |
In case of inferior goods, the income elasticity is |
| A. | ero |
| B. | ositive |
| C. | egative |
| D. | one |
| Answer» D. one | |
| 69. |
One characteristic not typical of oligopolistic industry is |
| A. | oo much importance to non-price competition |
| B. | rice leadership |
| C. | orizontal demand curve |
| D. | small number of firms in the industry |
| Answer» D. small number of firms in the industry | |
| 70. |
When indifference curve is L shaped, then two goods will be |
| A. | erfect substitute goods |
| B. | ubstitute goods |
| C. | erfect complementary goods |
| D. | omplementary goods |
| Answer» D. omplementary goods | |
| 71. |
The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost? |
| A. | ost of cloth |
| B. | iece wages paid to workers |
| C. | epreciation on machines owing to time |
| D. | ost of electricity for running machines |
| Answer» D. ost of electricity for running machines | |
| 72. |
The total effect of a price change of a commodity is |
| A. | ustitution effect plus price effect |
| B. | ubstitution effect plus income effect |
| C. | ubstitution effect plus demonstration effect |
| D. | ubstitution effect minus income effect |
| Answer» C. ubstitution effect plus demonstration effect | |
| 73. |
In monopoly, the relationship between average and marginal revenue curves is as follows |
| A. | R curve lies above the MR curve |
| B. | R curve coincides with the MR curve |
| C. | R curve lies below the MR curve |
| D. | R curve is parallel to the MR curve |
| Answer» B. R curve coincides with the MR curve | |
| 74. |
When the perfectly competitive firm and industry are in long run equilibrium, then |
| A. | = MR = SAC = LAC |
| B. | = MR = SMC = LMC |
| C. | = MR = Lowest point on the LAC curve |
| D. | ll of the above |
| Answer» E. | |
| 75. |
Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness? |
| A. | he individual firm must have fewer than 10 employees |
| B. | he individual firm faces a downward-sloping demand curve |
| C. | he individual firm has assets less than Rs. 20 lakhs |
| D. | he individual firm is unable to affect market price through its output decisions |
| Answer» E. | |
| 76. |
Who expressed the view that 'Economics should be neutral between ends'? |
| A. | obbins |
| B. | arshall |
| C. | igou |
| D. | dam Smith |
| Answer» B. arshall | |
| 77. |
What implication does resource scarcity have for the satisfaction of wants? |
| A. | ot all wants can be satisfied |
| B. | e will never be faced with the need to make choices |
| C. | e must develop ways to decrease our individual wants |
| D. | he discovery of new natural resources is necessary to increase our ability to satisfy wants |
| Answer» B. e will never be faced with the need to make choices | |
| 78. |
Which of the following bodies finalizes the Five Year Plan Proposals? |
| A. | lanning Commission |
| B. | nion Cabinet |
| C. | ational Development Council |
| D. | inistry of Planning |
| Answer» D. inistry of Planning | |
| 79. |
Total utility of a commodity is measured by which price of that commodity? |
| A. | alue in use |
| B. | alue in exchange |
| C. | oth of above |
| D. | one of above |
| Answer» B. alue in exchange | |
| 80. |
At the point of satiety, marginal utility is |
| A. | ero |
| B. | ositive |
| C. | aximum |
| D. | egative |
| Answer» C. aximum | |
| 81. |
Which one of the following is the task of the Planning Commission? |
| A. | reparation of the plan |
| B. | mplementation of the plan |
| C. | inancing of the plan |
| D. | one of the above |
| Answer» B. mplementation of the plan | |
| 82. |
Marginal utility is equal to average utility at that time when average utility is |
| A. | ncreasing |
| B. | aximum |
| C. | alling |
| D. | inimum |
| Answer» C. alling | |
| 83. |
When total utility becomes maximum, then marginal utility will be |
| A. | inimum |
| B. | verage |
| C. | ero |
| D. | egative |
| Answer» D. egative | |
| 84. |
For inferior commodities, income effect is |
| A. | ero |
| B. | egative |
| C. | nfinite |
| D. | ositive |
| Answer» C. nfinite | |
| 85. |
Under law of demand |
| A. | rice of commodity is an independent variable |
| B. | uantity demanded is a dependent variable |
| C. | eciprocal relationship is found between price and quantity demanded |
| D. | ll of the above |
| Answer» E. | |
| 86. |
Who is the 'father of economics'? |
| A. | ax Muller |
| B. | dam Smith |
| C. | arl Marx |
| D. | one of the above |
| Answer» C. arl Marx | |
| 87. |
Scarcity means |
| A. | on-availibility of goods |
| B. | igh price of goods |
| C. | ess supply than demand |
| D. | igh profit of the firms |
| Answer» D. igh profit of the firms | |
| 88. |
All inputs can be varied in |
| A. | hort run |
| B. | ong run |
| C. | oth periods |
| D. | one of the period |
| Answer» C. oth periods | |
| 89. |
A firm earns economic profit when total profit exceeds |
| A. | ormal profit |
| B. | mplicit costs |
| C. | xplicit costs |
| D. | ariable costs |
| Answer» B. mplicit costs | |
| 90. |
Which statement relates to macroeconomics? |
| A. | il prices are rising in Pakistan |
| B. | rofit rate is high on textile industry |
| C. | he firms try to make huge profits |
| D. | he government has failed to control inflation |
| Answer» E. | |
| 91. |
Unit cost is another name for |
| A. | C |
| B. | VC |
| C. | TC |
| D. | FC |
| Answer» D. FC | |
| 92. |
Economic profit is |
| A. | art of total cost |
| B. | otal revenue minus total cost |
| C. | otal revenue minus explicit cost |
| D. | otal variable cost minus total fixed cost |
| Answer» C. otal revenue minus explicit cost | |
| 93. |
He described economics as a science of material welfare |
| A. | obbins |
| B. | arshall |
| C. | icardo |
| D. | eynes |
| Answer» C. icardo | |
| 94. |
As output increases |
| A. | C curve initially falls and then rises |
| B. | C initially rises and then falls |
| C. | C continuously rises |
| D. | one of the above |
| Answer» B. C initially rises and then falls | |
| 95. |
Normal profit is |
| A. | art of total cost |
| B. | art of economic profit |
| C. | otal revenue minus total cost |
| D. | otal revenue minus implicit cost |
| Answer» B. art of economic profit | |
| 96. |
The human effort applied to the production of goods is called in economics |
| A. | abour |
| B. | kill |
| C. | xperience |
| D. | ervice |
| Answer» B. kill | |
| 97. |
Unemployment of labour means that |
| A. | worker does not get full time job |
| B. | worker is not happy with his present job |
| C. | person does not get job according to his qualification |
| D. | ' and 'c' both |
| Answer» E. | |
| 98. |
At the point of equilibrium of firm (under perfect competition) |
| A. | C curve must be rising |
| B. | C curve must be falling |
| C. | R cure must be rising |
| D. | one of the above |
| Answer» B. C curve must be falling | |
| 99. |
The labour force participation rate is the |
| A. | roportion of population that is working |
| B. | roportion of population working or looking for work |
| C. | roportion of skilled workers population |
| D. | roportion of female workers to male workers |
| Answer» D. roportion of female workers to male workers | |
| 100. |
Unemployment due to mechanization of agriculture is |
| A. | easonal |
| B. | tructural |
| C. | ndustrial |
| D. | ersonal |
| Answer» C. ndustrial | |