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.
| 201. |
The necessary condition for equilibrium position of a firm is |
| A. | R>MC |
| B. | C>Price |
| C. | C=MR |
| D. | C=AC |
| Answer» D. C=AC | |
| 202. |
A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as |
| A. | urplus value |
| B. | uasi-rent |
| C. | ransfer earnings |
| D. | uper normal profits |
| Answer» C. ransfer earnings | |
| 203. |
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as |
| A. | urplus value |
| B. | uasi-rent |
| C. | ransfer earnings |
| D. | uper normal profits |
| Answer» C. ransfer earnings | |
| 204. |
Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost? |
| A. | ost of raw material |
| B. | ost of equipment |
| C. | nterest payment on past borrowing |
| D. | ayment of rent on buildings |
| Answer» B. ost of equipment | |
| 205. |
What best explains a shift in market supply curve to the right? |
| A. | n advertising campaign is successful in promoting the good |
| B. | new technique makes it cheaper to produce the good |
| C. | he government introduces a tax on the good |
| D. | he price of raw materials increases |
| Answer» C. he government introduces a tax on the good | |
| 206. |
When a competitive firm achieves long run equilibrium, then, |
| A. | |
| B. | R=MC |
| C. | |
| D. | ll of the above |
| Answer» E. | |
| 207. |
The classical theory explained interest as a reward for |
| A. | arting with liquidity |
| B. | bstinence |
| C. | aving |
| D. | nconvenience |
| Answer» D. nconvenience | |
| 208. |
Which is the other name that is given to the average revenue curve? |
| A. | rofit curve |
| B. | emand curve |
| C. | verage cost curve |
| D. | ndifference curve |
| Answer» C. verage cost curve | |
| 209. |
In the case of an inferior good, the income elasticity of demand is |
| A. | ositive |
| B. | ero |
| C. | egative |
| D. | nfinite |
| Answer» D. nfinite | |
| 210. |
The elasticity of demand of durable goods is |
| A. | ess than unity |
| B. | reater than unity |
| C. | qual to unity |
| D. | ero |
| Answer» C. qual to unity | |
| 211. |
A firm under perfect competition is |
| A. | rice maker |
| B. | rice breaker |
| C. | rice taker |
| D. | rice shaker |
| Answer» D. rice shaker | |
| 212. |
Which is a condition for existence of monopoly? |
| A. | ig size |
| B. | dentical product |
| C. | bsence of government taxes |
| D. | o close substitute |
| Answer» E. | |
| 213. |
Under which of the following forms of market structure does a firm have no control over the price of its product? |
| A. | onopoly |
| B. | onopolistic competition |
| C. | ligopoly |
| D. | erfect competition |
| Answer» E. | |
| 214. |
Total utility is maximum when |
| A. | arginal utility is zero |
| B. | arginal utility is at its highest point |
| C. | arginal utility is equal to average |
| D. | verage utility is maximum |
| Answer» B. arginal utility is at its highest point | |
| 215. |
If a firm shuts down temporarily, it will incur loss equal to |
| A. | FC |
| B. | VC |
| C. | FC |
| D. | VC |
| Answer» D. VC | |
| 216. |
With which of the theories of wages, is the name of John Stuart Mill associated? |
| A. | arginal productivity theory of wages |
| B. | ages-fund theory |
| C. | ubsistence theory of wages |
| D. | ron aw of wages |
| Answer» C. ubsistence theory of wages | |
| 217. |
A vertical supply curve parallel to the price axis implies that the elasticity of supply is |
| A. | ero |
| B. | nfinity |
| C. | qual to one |
| D. | reater than zero but less than infinity |
| Answer» B. nfinity | |
| 218. |
Supply curve is |
| A. | ertical in long run |
| B. | latter in long run |
| C. | ame in long and short run |
| D. | orizontal in both short and long run |
| Answer» C. ame in long and short run | |
| 219. |
When supply of a commodity increases without change in price, it is called |
| A. | all in supply |
| B. | xpansion in supply |
| C. | ontraction in supply |
| D. | ise in supply |
| Answer» E. | |
| 220. |
Under perfect competition |
| A. | C=AVC |
| B. | R=AC |
| C. | R=MC |
| D. | R=MR |
| Answer» E. | |
| 221. |
Economic rent can accrue to |
| A. | and only |
| B. | apital only |
| C. | pecialized technical personnel only |
| D. | ny of the factors of production |
| Answer» E. | |
| 222. |
The supply of a commodity refers to |
| A. | ctual production of the commodity |
| B. | otal existing stock of the commodity |
| C. | tock available for sale |
| D. | mount of the commodity offered for sale at a particular price per unit of time |
| Answer» E. | |
| 223. |
During a particular year, farmers experienced a dry weather. If all the other factors remain constant, farmers supply curve for wheat will shift |
| A. | ightward |
| B. | eftward |
| C. | pward |
| D. | one of the above |
| Answer» C. pward | |
| 224. |
Which of the following is NOT the assumption of the Marginal Productivity Theory of Distribution? |
| A. | omogenity of a factor |
| B. | erfect competition in the factor market |
| C. | ll factors, except one, are variable |
| D. | iven stock of each factor and full employment |
| Answer» D. iven stock of each factor and full employment | |
| 225. |
An ISO-product slopes |
| A. | ownward to the left |
| B. | ownward to the right |
| C. | pward to the left |
| D. | pward to the right |
| Answer» C. pward to the left | |
| 226. |
If price changes by 1% and supply changes by 2%, then supply is |
| A. | lastic |
| B. | nelastic |
| C. | ndeterminate |
| D. | tatic |
| Answer» B. nelastic | |
| 227. |
In monopoly and perfect competition, the cost curves are |
| A. | ame |
| B. | ifferent |
| C. | pposite |
| D. | one of the above |
| Answer» B. ifferent | |
| 228. |
Which form of market structure is characterised by interdependence in decision-making as between the different competing firms? |
| A. | ligopoly |
| B. | erfect competition |
| C. | mperfect competition |
| D. | one of the above |
| Answer» B. erfect competition | |
| 229. |
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price |
| A. | qual to one |
| B. | reater than one |
| C. | mall than one |
| D. | ero |
| Answer» D. ero | |
| 230. |
Price and demand are positively correlated in case of |
| A. | ormal goods |
| B. | omforts |
| C. | iffen goods |
| D. | uxuries |
| Answer» D. uxuries | |
| 231. |
Which of the following is one of the assumptions of perfect competition? |
| A. | ew buyers and few sellers |
| B. | any buyers and few sellers |
| C. | any buyers and many sellers |
| D. | ll sellers and buyers are honest |
| Answer» D. ll sellers and buyers are honest | |
| 232. |
Which is the first-order condition for the profit of a firm to be maximum? |
| A. | C=MR |
| B. | C=MR |
| C. | R=AR |
| D. | C=AR |
| Answer» C. R=AR | |
| 233. |
Identify the aspect of taxation which is related to normative economics |
| A. | ncidence of tax |
| B. | ffect of tax on the capacity willingness to work |
| C. | quity of tax |
| D. | one of the above |
| Answer» D. one of the above | |
| 234. |
A decrease in demand causes the equilibrium price to |
| A. | ise |
| B. | all |
| C. | emain constant |
| D. | ndeterminate |
| Answer» C. emain constant | |
| 235. |
What is the shape of the average fixed cost (AFC) curve? |
| A. | -shape |
| B. | orizontal up to a point and then rising |
| C. | loping down towards the right |
| D. | ectangular hyperbola |
| Answer» E. | |
| 236. |
Other things equal, if a good has more substitutes, its price elasticity of demand is |
| A. | arger |
| B. | maller |
| C. | ero |
| D. | nity |
| Answer» B. maller | |
| 237. |
Which of the following is also known as plant curves? |
| A. | ong-run average cost (LAC) curves |
| B. | hort-run average cost (SAC) curves |
| C. | verage variable cost (AVC) curves |
| D. | verage total cost (ATC) curves |
| Answer» C. verage variable cost (AVC) curves | |
| 238. |
Which of the following is Microeconomics concerned with? |
| A. | he size of national output |
| B. | he level of employment |
| C. | hanges in general level of prices |
| D. | one of the above |
| Answer» E. | |
| 239. |
If quantity demanded is completely unresponsive to changes in price, demand is |
| A. | nelastic |
| B. | nit elastic |
| C. | lastic |
| D. | erfectly inelastic |
| Answer» E. | |
| 240. |
Some economists refer to iso-product curves as |
| A. | ngels curve |
| B. | roduction indifference curve |
| C. | udget line |
| D. | idge line |
| Answer» C. udget line | |
| 241. |
This is an assumption of law of demand |
| A. | rice of the commodity should not change |
| B. | uantity should not change |
| C. | upply should not change |
| D. | ncome of consumer should not change |
| Answer» E. | |
| 242. |
Which of the following is NOT a feature of iso-product curve? Iso-product curves |
| A. | re downward sloping to the right |
| B. | how different input combination producing the same output |
| C. | ntersect each other |
| D. | re convex to the origin |
| Answer» D. re convex to the origin | |
| 243. |
Law of demand shows relation between |
| A. | ncome and price of commodity |
| B. | rice and quantity of commodity |
| C. | ncome and quantity demanded |
| D. | uantity demanded and quantity supplied |
| Answer» C. ncome and quantity demanded | |
| 244. |
Who defined Economics as a 'science which studies human behaviour as a relationship betweeen ends and means which have alternative uses'? |
| A. | . Robbins |
| B. | lfred Marshall |
| C. | oan Robinson |
| D. | aul A. Samuelson |
| Answer» B. lfred Marshall | |
| 245. |
Normally a demand curve will have the shape |
| A. | orizontal |
| B. | ertical |
| C. | ownward sloping |
| D. | pward sloping |
| Answer» D. pward sloping | |
| 246. |
What is meant by Autarky in international trade? |
| A. | onopoly in international trade |
| B. | mposition of restrictions in international trade |
| C. | emoval of all restrictions from international trade |
| D. | he idea of self sufficiency and no international trade by a country |
| Answer» E. | |
| 247. |
Fisher's ideal index number is |
| A. | rithmetic mean of Laspeyre's and Paasche's index |
| B. | armonic mean of Laspeyre's and Paasche's index |
| C. | eometric mean of Laspeyre's and Paasche's index |
| D. | one of the above |
| Answer» D. one of the above | |
| 248. |
Which statistical measure helps in measuring the purchasing power of money? |
| A. | rithmetic average |
| B. | ndex numbers |
| C. | armonic mean |
| D. | ime series |
| Answer» C. armonic mean | |
| 249. |
The producer's demand for a factor of production is governed by the ____ of the factor. |
| A. | rice will decrease |
| B. | arginal productivity |
| C. | vailability |
| D. | rofitability |
| Answer» C. vailability | |
| 250. |
Demand for factors of production is |
| A. | erived demand |
| B. | oint demand |
| C. | omposite demand |
| D. | one of the above |
| Answer» B. oint demand | |