MCQOPTIONS
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MCQOPTIONS
This section includes 476 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 351. |
The marginal propensity to consume lies between |
| A. | 0 to 1 |
| B. | 0 to |
| C. | 1 to |
| D. | to |
| Answer» B. 0 to | |
| 352. |
The supply of labour in the economy depends on |
| A. | Population |
| B. | National income |
| C. | Per capita income |
| D. | Natural resources |
| Answer» B. National income | |
| 353. |
Name the curve which shows the quantity of products a seller wishes to sell at a given price level. |
| A. | Demand curve |
| B. | Cost curve |
| C. | Supply curve |
| D. | None of these |
| Answer» D. None of these | |
| 354. |
The expenses on advertising is called |
| A. | Implicit cost |
| B. | Surplus cost |
| C. | Fixed cost |
| D. | Selling cost |
| Answer» E. | |
| 355. |
The demand curve shows that price and quantity demanded are |
| A. | directly related only |
| B. | directly proportional and also directly related |
| C. | inversely proportional and also inversely related |
| D. | inversely related only |
| Answer» D. inversely related only | |
| 356. |
The break-even point is where |
| A. | marginal revenue equals marginal cost |
| B. | average revenue equals average cost |
| C. | total revenue equals total cost |
| D. | None of the above |
| Answer» D. None of the above | |
| 357. |
A want becomes a demand only when it is backed by the |
| A. | Ability to purchase |
| B. | Necessity to buy |
| C. | Desire to buy |
| D. | Utility of the product |
| Answer» B. Necessity to buy | |
| 358. |
Law of demand implies that when there is excess demand for a commodity, then |
| A. | price of the commodity falls |
| B. | price of the commodity remains same |
| C. | price of the commodity rises |
| D. | quantity demanded of the commodity falls |
| Answer» D. quantity demanded of the commodity falls | |
| 359. |
Surplus earned by a factor other than land in the short period of referred to as |
| A. | economic rent |
| B. | net rent |
| C. | quasi-rent |
| D. | super-normal rent |
| Answer» C. quasi-rent | |
| 360. |
Knowledge, technical skill, education etc. in economics, are regarded as |
| A. | social-overhead capital |
| B. | human capital |
| C. | tangible physical capital |
| D. | working capital |
| Answer» C. tangible physical capital | |
| 361. |
Which is the most essential function of an entrepreneur ? |
| A. | Supervision |
| B. | Management |
| C. | Marketing |
| D. | Risk bearing |
| Answer» E. | |
| 362. |
When average cost production (AC) falls, marginal cost of production must be. |
| A. | rising |
| B. | Falling |
| C. | Greater than the average cost |
| D. | Less than the average cost |
| Answer» E. | |
| 363. |
A refrigerator operating in a chemist s shop is an example of |
| A. | free good |
| B. | final good |
| C. | producers good |
| D. | consumer s good |
| Answer» C. producers good | |
| 364. |
The main determinant of real wage is |
| A. | extra earning |
| B. | nature of work |
| C. | promotion prospect |
| D. | purchasing power of money |
| Answer» E. | |
| 365. |
Economies of Scale means reduction in |
| A. | unit cost of production |
| B. | unit cost of distribution |
| C. | total cost of production |
| D. | total cost of distribution |
| Answer» B. unit cost of distribution | |
| 366. |
Hire and Fire is the policy of |
| A. | Capitalism |
| B. | Socialism |
| C. | Mixed Economy |
| D. | Traditional Economy |
| Answer» D. Traditional Economy | |
| 367. |
The terms Micro Economics and Macro Economics were coined by |
| A. | Alfred Marshall |
| B. | Ragner Nurkse |
| C. | Ragner Frisch |
| D. | J.M. Keynes |
| Answer» D. J.M. Keynes | |
| 368. |
All of the goods which are scarce and limited in supply are called |
| A. | Luxury goods |
| B. | Expensive goods |
| C. | Capital goods |
| D. | Economic goods |
| Answer» E. | |
| 369. |
Under full cost pricing, price is determined |
| A. | by adding a margin to the average cost |
| B. | by comparing marginal cost and marginal revenue |
| C. | by adding normal profit to the marginal cost |
| D. | by the total cost of production |
| Answer» B. by comparing marginal cost and marginal revenue | |
| 370. |
Which of the following most closely approximates our definition of oligopoly ? |
| A. | The cigarette industry. |
| B. | The barber shops |
| C. | The gasoline stations |
| D. | Wheat farmers |
| Answer» B. The barber shops | |
| 371. |
The measure of a worker s real wage is |
| A. | The change in his productivity over a given time |
| B. | His earnings after deduction at source |
| C. | His daily earnings |
| D. | The purchasing power of his earnings |
| Answer» E. | |
| 372. |
National Income is generated from: |
| A. | any money-making activity |
| B. | any laborious activity |
| C. | any profit-making activity |
| D. | any productive activity |
| Answer» C. any profit-making activity | |
| 373. |
The demand for which of the following commodity will not rise |
| A. | Television |
| B. | Refrigerator |
| C. | Salt |
| D. | Meat |
| Answer» D. Meat | |
| 374. |
The demand curve for a Giffen good is |
| A. | upward rising |
| B. | downward falling |
| C. | parallel to the quantity axis |
| D. | parallel to the price axis |
| Answer» B. downward falling | |
| 375. |
Who defined investment as the construction of a new capital asset like machinery or factory building ? |
| A. | Hansen |
| B. | J.M. Keynes |
| C. | Harrod |
| D. | J.R. Hicks |
| Answer» C. Harrod | |
| 376. |
The income elasticity of demand being greater than one, the commodity must be |
| A. | a necessity |
| B. | a luxury |
| C. | an inferior good |
| D. | None of these |
| Answer» C. an inferior good | |
| 377. |
When there is one buyer and many sellers then that situation is called |
| A. | Monopoly |
| B. | Single buyer right |
| C. | Down right |
| D. | Double buyers right |
| Answer» C. Down right | |
| 378. |
Enterpreneurial ability is a special kind of labour that |
| A. | is hired out to firms at high wages |
| B. | organizes the process of production |
| C. | produces new capital goods to earn interest |
| D. | manages to avoid losses by continual innovation |
| Answer» C. produces new capital goods to earn interest | |
| 379. |
Which of the following taxes is not collected by the Central Government ? |
| A. | Income tax |
| B. | Customs duty |
| C. | Professional tax |
| D. | Excise duty |
| Answer» D. Excise duty | |
| 380. |
Operating Surplus arises in the |
| A. | Government Sector |
| B. | Production for self-consumption |
| C. | Subsistence farming |
| D. | Enterprise Sector |
| Answer» B. Production for self-consumption | |
| 381. |
Equilibrium price means |
| A. | Price determined by demand and supply |
| B. | Price determined by Cost and Profit |
| C. | Price determined by Cost of production |
| D. | Price determined to maximise profit |
| Answer» B. Price determined by Cost and Profit | |
| 382. |
When marginal utility is zero, the total utility is |
| A. | Minimum |
| B. | Increasing |
| C. | Maximum |
| D. | Decreasing |
| Answer» D. Decreasing | |
| 383. |
In equilibrium, a perfectly competitive firm will equate |
| A. | marginal social cost with marginal social benefit |
| B. | market supply with market demand |
| C. | marginal profit with marginal cost |
| D. | marginal revenue with marginal cost |
| Answer» E. | |
| 384. |
The Marginal Utility Curve slopes downward from left to right indicating |
| A. | A direct relationship between marginal utility and the stock of commodity |
| B. | A constant relationship between marginal utility and the stock of commodity |
| C. | A proportionate relationship between marginal utility and the stock of commodity |
| D. | An inverse relationship between marginal utility and the stock of commodity |
| Answer» E. | |
| 385. |
If the price of an inferior good falls, its demand |
| A. | rises |
| B. | falls |
| C. | remains constant |
| D. | can be any of the above |
| Answer» B. falls | |
| 386. |
Demand of commodity mainly depends upon |
| A. | Purchasing will |
| B. | Purchasing power |
| C. | Tax policy |
| D. | Advertisement |
| Answer» C. Tax policy | |
| 387. |
Transfer earning or alternative cost is otherwise known as |
| A. | Variable cost |
| B. | Implicit cost |
| C. | Explicit cost |
| D. | Opportunity cost (economic cost) |
| Answer» E. | |
| 388. |
The fixed cost on such factors of production which are neither hired nor bought by the firm is called |
| A. | social cost |
| B. | opportunity cost |
| C. | economic cost |
| D. | surcharged cost |
| Answer» B. opportunity cost | |
| 389. |
A tax is characterised by horizontal equity if its liability is |
| A. | proportional to the income of tax payers |
| B. | similar for tax payers in similar circumstances |
| C. | proportional to the expenditure of tax payers |
| D. | the same for every tax payer |
| Answer» B. similar for tax payers in similar circumstances | |
| 390. |
Marginal cost is the |
| A. | cost of producing a unit of output |
| B. | cost of producing an extra unit of output |
| C. | cost of producing the total output |
| D. | cost of producing a given level of output |
| Answer» C. cost of producing the total output | |
| 391. |
An expenditure that has been made and cannot be recovered is called |
| A. | Variable cost |
| B. | Opportunity cost |
| C. | Sunk cost |
| D. | Operational cost |
| Answer» D. Operational cost | |
| 392. |
Which of the following does not determine supply of labour ? |
| A. | Size and age-structure of population |
| B. | Nature of work |
| C. | Marginal productivity of labour |
| D. | Work-leisure ratio |
| Answer» D. Work-leisure ratio | |
| 393. |
Seawater, fresh air, etc., are regarded in Economics as |
| A. | Giffen goods |
| B. | inferior goods |
| C. | free goods |
| D. | normal goods |
| Answer» D. normal goods | |
| 394. |
In the long-run equilibrium, a competitive firm earns |
| A. | Super-normal profit |
| B. | Profits equal to other firms |
| C. | Normal profit |
| D. | No profit |
| Answer» D. No profit | |
| 395. |
A rising Per Capita Income will indicate a better welfare if it is accompanied by |
| A. | unchanged Income distribution overall. |
| B. | changed Income distribution in favour of rich. |
| C. | changed Income distribution in favour of poor. |
| D. | changed Income disribution in favour of Industrial Labour. |
| Answer» D. changed Income disribution in favour of Industrial Labour. | |
| 396. |
An individual s actual standard of living can be assessed by |
| A. | Gross National Income |
| B. | Net National Income |
| C. | Per Capita Income |
| D. | Disposable Personal Income |
| Answer» D. Disposable Personal Income | |
| 397. |
Engel s Law states the relationship between |
| A. | quantity demanded and price of a commodity |
| B. | quantity demanded and price of substitutes |
| C. | quantity demanded and tastes of the consumers |
| D. | quantity demanded and income of the consumers |
| Answer» E. | |
| 398. |
The concept that under a system of free enterprise, it is consumers who decide what goods and services shall be produced and in what quantities is known as |
| A. | Consumer Protection |
| B. | Consumer s Decision |
| C. | Consumer Preference |
| D. | Consumer s Sovereignty |
| Answer» E. | |
| 399. |
According to modern thinking, the law of diminishing returns applies to |
| A. | agriculture |
| B. | industry |
| C. | mining |
| D. | all fields of production |
| Answer» E. | |
| 400. |
Given the money wages, if the price level in an economy increases, then the real wages will |
| A. | increase |
| B. | decrease |
| C. | remain constant |
| D. | become flexible |
| Answer» C. remain constant | |