373 + Mcqs in Economics Page 8 McqOptions

351.	Fisher’s ideal index number is:
A.	Arithmetic mean of Laspeyre’s and Paasche’s index
B.	Harmonic mean of Laspeyre’s and Paasche’s index
C.	Geometric mean of Laspeyre’s and Paasche’s index
D.	None of the above
Answer» D. None of the above

Discussion

352.	Which statistical measure helps in measuring the purchasing power of money?
A.	Arithmetic average
B.	Index numbers
C.	Harmonic mean
D.	Time series
Answer» C. Harmonic mean

Discussion

353.	Coefficient of Correlation (r) is significant, if:
A.	r > 5 times Probable Error
B.	r < 6 times Probable Error
C.	r > 6 times Probable Error
D.	r = 6 times Probable Error
Answer» D. r = 6 times Probable Error

Discussion

354.	Scatter diagram is used to study ___ in economic statistics.
A.	Variability in the series
B.	Nature of Correlation in the two series
C.	Regression
D.	Secular trend
Answer» C. Regression

Discussion

355.	Mean Deviation can be calculated from:
A.	Mean
B.	Median
C.	Mode
D.	Any of the above
Answer» E.

Discussion

356.	One of the methods to find out Mode is:
A.	Mode = 3 Median + 2 Mean
B.	Mode=3 Median – 3 Mean
C.	Mode = 2 Median – 3 Mean
D.	Mode=3 Median – 2 Mean
Answer» E.

Discussion

357.	Which among the following statements is INCORRECT?
A.	Coefficient of correlation can be computed directly from the data without measuring deviation
B.	Measures of Dispersion are also called averages of the second order.
C.	Standard deviation can be negative.
D.	Mean deviation can never be negative.
Answer» D. Mean deviation can never be negative.

Discussion

358.	Under conditions of perfect competition in the product market:
A.	MRP=VMP
B.	MRP > VMP
C.	VMP > MRP
D.	None of the above
Answer» B. MRP > VMP

Discussion

359.	The producer’s demand for a factor of production is governed by the ___ of that factor.
A.	Price
B.	Marginal Productivity
C.	Availability
D.	Profitability
Answer» C. Availability

Discussion

360.	Demand for factors of production is:
A.	Derived demand
B.	Joint demand
C.	Composite demand
D.	None of the above
Answer» B. Joint demand

Discussion

361.	The offer curves introduced by Alfred Marshall, helps us to understand how the ______ is established in international trade.
A.	Terms of trade
B.	Equilibrium price ratio
C.	Exchange rate
D.	Satisfaction level
Answer» B. Equilibrium price ratio

Discussion

362.	In which of the following market structure is the degree of control over the price of its product by a firm very large?
A.	Imperfect competition
B.	Perfect competition
C.	Monopoly
D.	In A and B both
Answer» D. In A and B both

Discussion

363.	The economist’s objections to monopoly rest on which of the following grounds?
A.	There is a transfer of income from consumers to the monopolist
B.	There is welfare loss as resources tend to be misallocated under monopoly
C.	Only A is correct
D.	Both A and B are correct
Answer» E.

Discussion

364.	Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium:
A.	Price will decrease
B.	Price will increase
C.	Quantity will increase
D.	Quantity will decrease
Answer» E.

Discussion

365.	The cost of one thing in terms of the alternative given up is called:
A.	Real cost
B.	Production cost
C.	Physical cost
D.	opportunity cost
Answer» E.

Discussion

366.	In the short run, when the output of a firm increases, its average fixed cost:
A.	Remains constant
B.	Decreases
C.	Increases
D.	First decreases and then rises
Answer» C. Increases

Discussion

367.	The supply of a good refers to:
A.	Stock available for sale
B.	Total stock in the warehouse
C.	Actual Production of the good
D.	Quantity of the good offered for sale at a particular price per unit of time
Answer» E.

Discussion

368.	Income elasticity of demand is defined as the responsiveness of:
A.	Quantity demanded to a change in income
B.	Quantity demanded to a change in price
C.	Price to a change in income
D.	Income to a change in quantity demanded
Answer» B. Quantity demanded to a change in price

Discussion

369.	An individual demand curve slopes downward to the right because of the:
A.	Working of the law of diminishing marginal utility
B.	substitution effect of decrease in price
C.	income effect of fall in Price
D.	All of the above
Answer» E.

Discussion

370.	The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
A.	Zero
B.	Infinite
C.	Equal to one
D.	Greater than zero but less than infinity
Answer» C. Equal to one

Discussion

371.	If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
A.	Increase
B.	Decrease
C.	Remain the same
D.	Become zero
Answer» B. Decrease

Discussion

372.	Which among the following statement is INCORRECT?
A.	On a linear demand curve, all the five forms of elasticity can be depicted’
B.	If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
C.	If two demand curves are linear, and parallel to each other then at a particular price the coefficient of elasticity would be different on different demand curves.
D.	The price elasticity of demand is expressed in terms of relative not absolute, changes in Price and quantity demanded’
Answer» C. If two demand curves are linear, and parallel to each other then at a particular price the coefficient of elasticity would be different on different demand curves.

Discussion

373.	Demand for a commodity refers to:
A.	Need for the commodity
B.	Desire for the commodity
C.	Amount of the commodity demanded at a particular price and at a particular time
D.	Quantity demanded of that commodity
Answer» D. Quantity demanded of that commodity

Discussion

Explore topic-wise MCQs in 12th.

Fisher&rsquo;s ideal index number is:

Which statistical measure helps in measuring the purchasing power of money?

Coefficient of Correlation (r) is significant, if:

Scatter diagram is used to study ___ in economic statistics.

Mean Deviation can be calculated from:

One of the methods to find out Mode is:

Which among the following statements is INCORRECT?

Under conditions of perfect competition in the product market:

The producer&rsquo;s demand for a factor of production is governed by the ___ of that factor.

Demand for factors of production is:

The offer curves introduced by Alfred Marshall, helps us to understand how the ______ is established in international trade.

In which of the following market structure is the degree of control over the price of its product by a firm very large?

The economist&rsquo;s objections to monopoly rest on which of the following grounds?

Assume that consumer&rsquo;s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium:

The cost of one thing in terms of the alternative given up is called:

In the short run, when the output of a firm increases, its average fixed cost:

The supply of a good refers to:

Income elasticity of demand is defined as the responsiveness of:

An individual demand curve slopes downward to the right because of the:

The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

Which among the following statement is INCORRECT?

Demand for a commodity refers to:

Fisher’s ideal index number is:

The producer’s demand for a factor of production is governed by the ___ of that factor.

The economist’s objections to monopoly rest on which of the following grounds?

Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium: