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.
| 151. |
Which statement is true |
| A. | TC + AVC = AFC |
| B. | TC + MC = AFC |
| C. | TC + AFC = AVC |
| D. | FC + AVC = ATC |
| Answer» E. | |
| 152. |
Union leaders are in better position to bargain for higher wages if demand for labour is |
| A. | lastic |
| B. | nelastic |
| C. | ery large |
| D. | ermanent |
| Answer» C. ery large | |
| 153. |
Who is generally regarded as the founder of the 'Classical School'? |
| A. | avid Ricardo |
| B. | dam Smith |
| C. | .R.Malthus |
| D. | .S.Mill |
| Answer» C. .R.Malthus | |
| 154. |
A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is |
| A. | qual to 1 |
| B. | ore than 1 |
| C. | ess than 1 |
| Answer» B. ore than 1 | |
| 155. |
Which is not a central problem of an economy? |
| A. | hat to produce |
| B. | owto produce |
| C. | ow to maximize private profit |
| D. | or whom to produce |
| Answer» D. or whom to produce | |
| 156. |
The transformation of resources into economic goods and services is called |
| A. | echnical efficiency |
| B. | nput |
| C. | roduction |
| D. | ncreasing returns |
| Answer» D. ncreasing returns | |
| 157. |
Which of the following is CORRECT with respect to resources? |
| A. | oney is a capital good |
| B. | uman skills are a labour input |
| C. | ntrepreneur is part of the labour input |
| D. | atural resources include human input |
| Answer» C. ntrepreneur is part of the labour input | |
| 158. |
Quality of a commodity that satisfies some human want or need is called |
| A. | ervice |
| B. | emand |
| C. | tility |
| D. | fficiency |
| Answer» D. fficiency | |
| 159. |
Which of the following is NOT an input? |
| A. | abour |
| B. | ntrepreneurship |
| C. | atural resources |
| D. | roduction |
| Answer» E. | |
| 160. |
When Marginal Utility is zero, Total Utility is |
| A. | inimum |
| B. | aximum |
| C. | aw of return |
| D. | one of the above |
| Answer» C. aw of return | |
| 161. |
Profits |
| A. | re lower in the long run than in the short run |
| B. | an be negative |
| C. | re less in perfect competition than in monopoly |
| D. | ll of the above |
| Answer» E. | |
| 162. |
Diminishing marginal utility is the basis of |
| A. | aw of supply |
| B. | aw of demand |
| C. | aw of returns |
| D. | one of the above |
| Answer» C. aw of returns | |
| 163. |
Profits are |
| A. | esidual payment |
| B. | re-determined |
| C. | ixed contract |
| D. | lways higher than wages |
| Answer» B. re-determined | |
| 164. |
Economic development of a country requires |
| A. | killed labour |
| B. | iplomacy |
| C. | bundant natural resources |
| D. | ' and 'c' both |
| Answer» E. | |
| 165. |
Professor Knight is famous for his theory of |
| A. | ent |
| B. | rofit |
| C. | opulation |
| D. | ages |
| Answer» C. opulation | |
| 166. |
Identify the work of Irving Fisher |
| A. | Treatese on Money |
| B. | olicy against Inflation |
| C. | he Making of Index numbers |
| D. | onetary Theory |
| Answer» D. onetary Theory | |
| 167. |
As output increases, AC curve |
| A. | alls |
| B. | ises |
| C. | emains constant |
| D. | ll of the above |
| Answer» E. | |
| 168. |
Law of substitution is another name for law of |
| A. | aw of diminishing MU |
| B. | aw of Equi-MU |
| C. | aw of demand |
| D. | atisfaction |
| Answer» C. aw of demand | |
| 169. |
If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is |
| A. | 0 |
| B. | 0.9 |
| C. | 5 |
| D. | 10 |
| Answer» C. 5 | |
| 170. |
The Purchasing Power Parity Theory' came into prominence in 1916 through the writings of |
| A. | .M.Keynes |
| B. | .E.Von Miser |
| C. | ustav Cassel |
| D. | .A.von Hayek |
| Answer» D. .A.von Hayek | |
| 171. |
The long run is a |
| A. | eriod of three years or longer |
| B. | eriod long enough to allow firms to change plant size and capacity |
| C. | eriod long enough to allow firm to make economic decisions |
| D. | period which affects larger than smaller firms |
| Answer» C. eriod long enough to allow firm to make economic decisions | |
| 172. |
Demand curve slopes downward because of the law of |
| A. | onsumer equilibrium |
| B. | tility maximization |
| C. | tility minimization |
| D. | iminishing marginal utility |
| Answer» E. | |
| 173. |
Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. Do you know in which year was Francois Quesnay's Tableu Economique published? |
| A. | 767 |
| B. | 764 |
| C. | 761 |
| D. | 758 |
| Answer» E. | |
| 174. |
In the short run, when the output of a firm increases, its average fixed cost |
| A. | ncreases |
| B. | ecreases |
| C. | emains constant |
| D. | irst declines and then rises |
| Answer» C. emains constant | |
| 175. |
Economic problems arise because |
| A. | ants are unlimited |
| B. | esources are scarce |
| C. | care resources have alternative uses |
| D. | ll of the above |
| Answer» E. | |
| 176. |
A firm should shut down in the short run if it is not covering its |
| A. | ariable cost |
| B. | ixed cost |
| C. | otal cost |
| D. | xplicit cost (money outlays) |
| Answer» B. ixed cost | |
| 177. |
It describes the law of supply |
| A. | upply curve |
| B. | upply schedule |
| C. | upply equation |
| D. | ll of the above |
| Answer» E. | |
| 178. |
A firm decides to exit the industry when |
| A. | C starts rising |
| B. | C starts rising |
| C. | rice is less than LAC |
| D. | C starts rising |
| Answer» D. C starts rising | |
| 179. |
Which of the following oligopoly models is concerned with the maximization of joint profits? |
| A. | rice leadership model |
| B. | ertrand's model |
| C. | ollusive model |
| D. | dgeworth's model |
| Answer» D. dgeworth's model | |
| 180. |
The consumer is in equilibrium at a point where the budget line |
| A. | s above an indifference curve |
| B. | s below an indifference curve |
| C. | s tangent to an indifference curve |
| D. | uts an indifference curve |
| Answer» D. uts an indifference curve | |
| 181. |
The Revealed Preference Theory deduces the inverse price-quantity relationship from |
| A. | ssumption of indifference |
| B. | ostulate of utility maximization |
| C. | bserved behavior of the consumer |
| D. | ntrospection |
| Answer» D. ntrospection | |
| 182. |
Supply curve will shift when |
| A. | rice falls |
| B. | rice rises |
| C. | emand shots |
| D. | echnology changes |
| Answer» E. | |
| 183. |
In the context of oligopoly, the kinked demand curve hypothesis is designed to explain |
| A. | rice and output determination |
| B. | rice rigidity |
| C. | rice leadership |
| D. | ollusion among rivals |
| Answer» C. rice leadership | |
| 184. |
An indifference curve slopes down towards right since more of one commodity and less of another result in |
| A. | ame satisfaction |
| B. | reater satisfaction |
| C. | aximum satisfaction |
| D. | ecreasing expenditure |
| Answer» B. reater satisfaction | |
| 185. |
When marginal revenue is zero, total revenue is |
| A. | aximum |
| B. | inimum |
| C. | ero |
| D. | ecreasing |
| Answer» B. inimum | |
| 186. |
Which of the following is NOT a characteristic of perfect competition? |
| A. | ree entry and exit of the firms |
| B. | he demand curve of firm is horizontal |
| C. | he marginal revenue curve is horizontal |
| D. | n individual firm can influence the price |
| Answer» E. | |
| 187. |
The elasticity of substitution between two perfect substitutions is |
| A. | ero |
| B. | reater than zero |
| C. | ess than infinity |
| D. | nfinity |
| Answer» E. | |
| 188. |
What does price elasticity of demand measure? |
| A. | hange in price caused by changes in demand |
| B. | he rate of change of sales |
| C. | he responsiveness of demand to price changes |
| D. | he value of sales at a given price |
| Answer» D. he value of sales at a given price | |
| 189. |
Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is |
| A. | niform |
| B. | ifferent |
| C. | ess |
| D. | ero |
| Answer» C. ess | |
| 190. |
Which one is not a assumption of the theory of demand based on analysis of indifference curves? |
| A. | iven scale of preferences as between different combinations of two goods |
| B. | iminishing marginal rate of substitution |
| C. | onstant marginal utility of money |
| D. | onsumers would always prefer more of a particular good to less of it, other things remaining the same |
| Answer» D. onsumers would always prefer more of a particular good to less of it, other things remaining the same | |
| 191. |
If price and total revenue move in the same direction, then demand is |
| A. | nelastic |
| B. | lastic |
| C. | nrelated |
| D. | erfectly elastic |
| Answer» B. lastic | |
| 192. |
The major difference between perfect competition and monopolistic competition is |
| A. | umber of firms |
| B. | ifferentiated product |
| C. | ate of profit |
| D. | ree exit and entry |
| Answer» C. ate of profit | |
| 193. |
The budget line is also known as the |
| A. | so-utility curve |
| B. | roduction possibility line |
| C. | soquant |
| D. | onsumption possibility line |
| Answer» E. | |
| 194. |
Demand is a function of |
| A. | rice |
| B. | uantity |
| C. | upply |
| D. | one of the above |
| Answer» B. uantity | |
| 195. |
In case of perfect competition in the market |
| A. | arginal revenue curve always slopes upward |
| B. | arginal revenue curve always slopes downwards |
| C. | arginal revenue is always equal to average revenue |
| D. | arginal revenue is always less than average revenue |
| Answer» D. arginal revenue is always less than average revenue | |
| 196. |
The situation of monopolistic competition is created by |
| A. | mall number of producers of a commodity |
| B. | ack of homogeneity of the product produced by different firms |
| C. | mperfection of the market for that product |
| D. | ll of the above |
| Answer» E. | |
| 197. |
In case of monopoly |
| A. | arginal revenue curve always slopes upward |
| B. | otal revenue curve always slopes upward |
| C. | arginal revenue is always equal to average revenue |
| D. | arginal revenue is always less than average revenue |
| Answer» E. | |
| 198. |
Which one of the following is the condition of equilibrium for the monopolist? |
| A. | R=MC |
| B. | C=AR |
| C. | R=MC=Price |
| D. | C=AR |
| Answer» B. C=AR | |
| 199. |
If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to |
| A. | emain the same |
| B. | ncrease |
| C. | ecrease |
| D. | ny of the above |
| Answer» C. ecrease | |
| 200. |
In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is |
| A. | erfectly elastic |
| B. | erfectly inelastic |
| C. | ess elastic |
| D. | ore elastic |
| Answer» D. ore elastic | |