Explore topic-wise MCQs in Economics Mcqs.

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because ?

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?

An increase in the minimum wage will cause a relatively large increase in unemployment among ?

Which of the following issues is related to microeconomics ?

Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

Unemployment benefits may increase the unemployment rate because unemployment benefits ?

If a production function exhibits diminishing marginal product. its slope ?

When marginal costs are below average total costs ?

If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

New technology in the form of computer spreadsheets has increased the productivity of accountants. This will cause ?

The marginal revenue product of labour is ?

If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?

Constrained choice is relevant for households ?

As the wage rate per hour increases, the opportunity cost of leisure ?

Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the ?

Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?

The greatest advantage of a negative income tax is that it ?

If the income effect is smaller than the substitution effect, higher net wages will ?

Differences in wages that result from differences in working conditions are known as ?

The idea that the demand for car workers stems from the demand for cars is ?

The substitution effect of higher wages suggests that as the wage rate increases ?

The poverty trap refers to ?

In making which of the following statements is an economist acting more like a scientist ?

The Benazir Benefit income Scheme is a good example of ?

Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

Economic growth is depicted by ?

Points on the production possibilities frontier are ?

Which of the following is most likely to produce scientific evidence about a theory ?

Which of the following is not a factor of production ?

Where a tax can be shifted the incidence depends on ?

Accounting profit is equal to total revenue minus ?

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?

A progressive income tax means that those with a higher income pay ?

The marginal tax rate is ?

VAT is a good example of which kind of tax ?

Tax incidence is the ?

Which of the following statements is normative ?

If there are implicit costs of production ?

If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?

Positive statements are ?

If marginal costs equal average total costs ?

In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?

Which of the following statements about microeconomics and macroeconomics is not true ?

Current anti-poverty programs discourage work because ?

Which of the following will not shift a country’s production possibilities frontier outward ?

A Gini coefficient of zero means that the ?

The stock of knowledge, skills and talents that people possess is called ?

Vertical equity holds that ?

The scientific method requires that ?

Supply of land in a given use ?