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.
| 401. |
A firm is in equilibrium when its |
| A. | marginal cost equals the marginal revenue |
| B. | total cost is minimum |
| C. | total revenue is maximum |
| D. | average revenue and marginal revenue are equal |
| Answer» B. total cost is minimum | |
| 402. |
Sellers market denotes a situation where : |
| A. | commodities are available at competitive rates |
| B. | demand exceeds supply |
| C. | supply exceeds demand |
| D. | supply and demand are evenly balanced |
| Answer» C. supply exceeds demand | |
| 403. |
In the law of demand, the statement Other things remain constant means |
| A. | income of consumer should not change |
| B. | price of other goods should not change |
| C. | taste of consumer should not change |
| D. | All of the above |
| Answer» E. | |
| 404. |
One of the essential conditions of Monopolistic competition is |
| A. | Many buyers but one seller |
| B. | Price discrimination |
| C. | Product differentiation |
| D. | Homogeneous product |
| Answer» D. Homogeneous product | |
| 405. |
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 these |
| Answer» C. total revenue equals total cost | |
| 406. |
When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will |
| A. | decrease |
| B. | increase |
| C. | remain the same |
| D. | contract |
| Answer» C. remain the same | |
| 407. |
Movement along the same demand curve is know as |
| A. | Extension and Contraction of Demand |
| B. | Increase and Decrease of Demand |
| C. | Contraction of supply |
| D. | Increase of supply |
| Answer» C. Contraction of supply | |
| 408. |
If an industry is characterised by economies of scale then |
| A. | barriers to entry are not very large |
| B. | long run unit costs of production decreases as the quantity the firm produces increases |
| C. | capital requirement are small due to the efficiency of the large scale operation |
| D. | the costs of entry into the market are likely to be substantial |
| Answer» C. capital requirement are small due to the efficiency of the large scale operation | |
| 409. |
Economic rent refers to |
| A. | Payment made for the use of labour |
| B. | Payment made for the use of capital |
| C. | Payment made for the use of organisation |
| D. | Payment made for the use of land |
| Answer» E. | |
| 410. |
Average Revenue means |
| A. | the revenue per unit of commodity sold |
| B. | the revenue from all commodities sold |
| C. | the profit realised from the marginal unit sold |
| D. | the profit realised by sale of all commodities |
| Answer» B. the revenue from all commodities sold | |
| 411. |
The theory of distribution relates to which of the following? |
| A. | The distribution of assets |
| B. | The distribution of income |
| C. | The distribution of factor payments |
| D. | Equality in the distribution of the income and wealth |
| Answer» E. | |
| 412. |
One of the essential conditions of perfect competition is : |
| A. | product differentiation |
| B. | multiplicity of prices for identical products at any one time. |
| C. | many sellers and a few buyers. |
| D. | Only one price for identical goods at any one time. |
| Answer» E. | |
| 413. |
Production function relates |
| A. | Cost to output |
| B. | Cost to input |
| C. | Wages to profit |
| D. | Inputs to output |
| Answer» E. | |
| 414. |
Monopoly means |
| A. | single buyer |
| B. | many sellers |
| C. | single seller |
| D. | many buyers |
| Answer» D. many buyers | |
| 415. |
What does a Leasing Company provide ? |
| A. | Machinery and capital equipment on hire |
| B. | Legal guidance in establishing an enterprise |
| C. | Office accommodation on hire |
| D. | Technical consultancy and experts for a fee |
| Answer» B. Legal guidance in establishing an enterprise | |
| 416. |
Transfer payments include : |
| A. | Gifts received from a friend |
| B. | rent free accommodation by the employer |
| C. | net factor income from abroad |
| D. | Employee's contribution to social security |
| Answer» E. | |
| 417. |
The total value of goods and services produced in a country during a given period is |
| A. | Disposable income |
| B. | National income |
| C. | Per capita income |
| D. | Net national income |
| Answer» C. Per capita income | |
| 418. |
If total utility is maximum at a point, then marginal utility is |
| A. | positive |
| B. | zero |
| C. | negative |
| D. | positive but decreasing |
| Answer» C. negative | |
| 419. |
Per capita income is equal to |
| A. | <table><tr><td rowspan="2"></td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>National Income</center></td></tr><tr><td style="text-align: center;">Total Population of the country</td></tr></table> |
| B. | National Income + Population |
| C. | National Income Population |
| D. | National Income Population |
| Answer» B. National Income + Population | |
| 420. |
Value of out put and value added can be distinguished if we know: |
| A. | the value of intermediate consumption |
| B. | the value of net indirect taxes |
| C. | the value of the sales |
| D. | the value of consumption of fixed capital |
| Answer» B. the value of net indirect taxes | |
| 421. |
Bread and butter, car and petrol are examples of goods which have |
| A. | composite demand |
| B. | joint demand |
| C. | derived demand |
| D. | autonomous demand |
| Answer» D. autonomous demand | |
| 422. |
Which one of the following items is not included in the current account of India s Balance of Payments ? |
| A. | Short-term commercial borrowings |
| B. | Non-monetary gold movements |
| C. | Investment income |
| D. | Transfer payments |
| Answer» C. Investment income | |
| 423. |
The situation in which total revenue is equal to total cost, is known as |
| A. | monopolistic competition |
| B. | equilibrium level of output |
| C. | break-even point |
| D. | perfect competition |
| Answer» D. perfect competition | |
| 424. |
National Income include : |
| A. | Financial help to earthquake victims |
| B. | Pocket money of a child |
| C. | Winning of a lottery prize |
| D. | Construction of a new house |
| Answer» E. | |
| 425. |
Personal Income equals |
| A. | The household sector s income |
| B. | Private income minus savings of the corporate sector minus corporation tax |
| C. | Personal disposable income plus miscellaneous receipts of the Goverment |
| D. | All of the above |
| Answer» D. All of the above | |
| 426. |
Perfect competition means |
| A. | large number of buyers and less sellers |
| B. | large number of buyers and sellers |
| C. | large number of sellers and less buyers |
| D. | None of these |
| Answer» C. large number of sellers and less buyers | |
| 427. |
The relationship between price of a commodity and the demand for it |
| A. | is a positive relationship |
| B. | is an inverse relationship |
| C. | They are independent of each other |
| D. | They do not have any relationship |
| Answer» C. They are independent of each other | |
| 428. |
Which of the following is the classification of Industries on the basis of raw-materials ? |
| A. | Small Scale Large scale |
| B. | Primary and Secondary |
| C. | Basic and Consumer |
| D. | Agro-based and Mineral based |
| Answer» E. | |
| 429. |
According to the classical system, saving is a function of |
| A. | Income |
| B. | The interest rate |
| C. | The real wage |
| D. | The Price level |
| Answer» B. The interest rate | |
| 430. |
An economy is in equili-brium when |
| A. | planned consumption exceeds planned saving |
| B. | planned consumption exceeds planned investment |
| C. | intended investment equals intended investment |
| D. | intended investment exceeds intended savings |
| Answer» D. intended investment exceeds intended savings | |
| 431. |
Payment of water charges by the farmers to the govern-ment represents |
| A. | intermediate consumption |
| B. | final consumption |
| C. | fixed investment |
| D. | inventory investment |
| Answer» B. final consumption | |
| 432. |
Which one of the following items is included in the national income account? |
| A. | Services of housewives |
| B. | Income of smugglers |
| C. | Services of Sadhus |
| D. | Services of night-watchmen |
| Answer» E. | |
| 433. |
Total fixed cost curve is |
| A. | Vertical |
| B. | Horizontal |
| C. | Positively Sloping |
| D. | Negatively sloping |
| Answer» C. Positively Sloping | |
| 434. |
What is needed for creating demand ? |
| A. | Production |
| B. | Price |
| C. | Income |
| D. | Import |
| Answer» B. Price | |
| 435. |
An increase in national income because of an increase in price is called |
| A. | an increase in national income in real terms |
| B. | an increase in national income at constant prices |
| C. | an increase in money national income |
| D. | an increase in national income at base year prices |
| Answer» E. | |
| 436. |
It is prudent to determine the size of the output when the industry is operating in the stage of |
| A. | increasing returns |
| B. | constant returns |
| C. | diminishing returns |
| D. | negative returns |
| Answer» D. negative returns | |
| 437. |
Government securities are considered liquid because they are |
| A. | backed by the Government treasury |
| B. | convertible into other types of saving deposits |
| C. | quickly and easily marketable |
| D. | stable in value |
| Answer» D. stable in value | |
| 438. |
Why is rent earned by land even in the long run ? |
| A. | Land has original and indestructible power |
| B. | Land is a man made factor |
| C. | Its supply is inelastic in the short run |
| D. | Its supply is inelastic in the long run |
| Answer» E. | |
| 439. |
Which of the following taxes is such which does not cause rise in price ? |
| A. | Import duty |
| B. | Income tax |
| C. | Octoroi |
| D. | Sales tax |
| Answer» C. Octoroi | |
| 440. |
In accounting terms, what constitutes the closing stock ? |
| A. | Net Investment |
| B. | Gross Investment-Capital Losses |
| C. | Opening Stock-Capital Losses |
| D. | Opening Stock + Net Investment Capital Losses |
| Answer» E. | |
| 441. |
Full employment is a situation where |
| A. | there is no involuntary unemployment |
| B. | there is involuntary unemployment |
| C. | there is no voluntary unemployment |
| D. | there is voluntary unemployment |
| Answer» C. there is no voluntary unemployment | |
| 442. |
Aggregate net value of the output in one year is the |
| A. | National income at factor cost |
| B. | Gross Domestic Product at market prices |
| C. | Net National Product at market prices |
| D. | Gross National Product at market prices |
| Answer» D. Gross National Product at market prices | |
| 443. |
Liquidity Preference means |
| A. | holding assets in the form of bonds and shares |
| B. | holding assets in the form of cash |
| C. | creation of immovable property |
| D. | assets in the form of jewellery |
| Answer» C. creation of immovable property | |
| 444. |
What is referred to as Depository Services ? |
| A. | A new scheme of fixed deposits |
| B. | A method for regulating stock exchanges |
| C. | An agency for safe-keeping of securities |
| D. | An advisory service to investors |
| Answer» D. An advisory service to investors | |
| 445. |
What is Value Added Tax (VAT) ? |
| A. | A simple, transparent, easy to pay tax imposed on consumers |
| B. | A new initiative taken by the Government to increase the tax-burden of high income groups |
| C. | A single tax that replaces State taxes like, surcharge, turnover tax, etc. |
| D. | A new tax to be imposed on the producers of capital goods |
| Answer» D. A new tax to be imposed on the producers of capital goods | |
| 446. |
Which of the following is not viewed as national debt ? |
| A. | Life Insurance Policies |
| B. | Long-term Government Bonds |
| C. | National Savings Certificates |
| D. | Provident Fund |
| Answer» B. Long-term Government Bonds | |
| 447. |
State which of the following is correct ? The Consumer Price Index reflects : |
| A. | the standard of living |
| B. | the extent of inflation in the prices of consumer goods |
| C. | the increasing per capita income |
| D. | the growth of the economy |
| Answer» C. the increasing per capita income | |
| 448. |
Golden Handshake Scheme is associated with |
| A. | inviting foreign companies |
| B. | private investment in public enterprises |
| C. | establishing joint enterprises |
| D. | voluntary retirement |
| Answer» E. | |
| 449. |
Speculative demand for cash is determined by |
| A. | The rate of interest |
| B. | the level of income |
| C. | the general price level |
| D. | the market conditions |
| Answer» B. the level of income | |
| 450. |
Industrial exit policy means |
| A. | forcing foreign companies to leave India |
| B. | forcing business units to move out of congested localities |
| C. | allowing manufacturers to shift their line of products |
| D. | allowing business units to close down |
| Answer» E. | |