MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
labourers are employed the firm produces 136 units of output. Then the marginal product is --- |
| A. | 120 |
| B. | 136 |
| C. | 6 |
| D. | 16 |
| Answer» D. 16 | |
| 2. |
Which one of the following is not related to economies of scale: |
| A. | scope for division of labour and specialization |
| B. | scope for getting inputs at cheaper rates |
| C. | difficulty faces by the managers to coordinate the business |
| D. | scope for better storage facilities |
| Answer» D. scope for better storage facilities | |
| 3. |
The law of Diminishing returns is applicable to: |
| A. | agriculture only |
| B. | industry only |
| C. | in short-run only |
| D. | universally |
| Answer» E. | |
| 4. |
The solution to diminishing returns to scale is : |
| A. | technical progress |
| B. | expansion of resources |
| C. | proper combination or resources |
| D. | all of the above |
| Answer» E. | |
| 5. |
In the case of diminishing returns to scale, a given proportionate increase in all factors causes |
| A. | a more than proportionate increase in output |
| B. | an equal proportionate increase in output |
| C. | a less than proportionate increase in output |
| D. | none of the above |
| Answer» D. none of the above | |
| 6. |
Returns to scale refers to the production function where |
| A. | all factors are fixed |
| B. | some factors are fixed and others are variable |
| C. | all factors are variable |
| D. | none of the above |
| Answer» D. none of the above | |
| 7. |
Total product reaches at maximum when |
| A. | mp is increasing |
| B. | mp is maximum |
| C. | mp = 0 |
| D. | mp is negative |
| Answer» D. mp is negative | |
| 8. |
The cause for diminishing returns to scale is: |
| A. | improper proportion of factors of production |
| B. | difficulty in the combination of certain factors |
| C. | excess combination of certain factors |
| D. | all of the above |
| Answer» E. | |
| 9. |
Increasing returns to scale occurs due to |
| A. | division of labour |
| B. | specialization |
| C. | economies of scale |
| D. | all of the above |
| Answer» E. | |
| 10. |
The ‘point of inflection’ come in which stage of the law of variable proportions |
| A. | stage i |
| B. | stage ii |
| C. | stage iii |
| D. | none of the above |
| Answer» B. stage ii | |
| 11. |
Law of variable proportions is concerned with |
| A. | long-run production function |
| B. | laws of returns to scale |
| C. | short-run production function |
| D. | none of the above |
| Answer» D. none of the above | |
| 12. |
The variable cost of a firm vary in direct proportion to the |
| A. | volume of its output |
| B. | extent of its profits |
| C. | volume of its sale |
| D. | all of the above |
| Answer» B. extent of its profits | |
| 13. |
A rational producer will select his level of production in which stage of the law of variable proportions |
| A. | stage i |
| B. | stage ii |
| C. | stage iii |
| D. | either stage i or stage ii |
| Answer» C. stage iii | |
| 14. |
In long-run |
| A. | all inputs are fixed |
| B. | all inputs are variable |
| C. | some inputs are fixed and some are variable |
| D. | none of the above |
| Answer» C. some inputs are fixed and some are variable | |
| 15. |
Which one of the following is an example of fixed input |
| A. | raw materials |
| B. | casual workers |
| C. | plant and equipments |
| D. | all of the above |
| Answer» D. all of the above | |
| 16. |
In short-run |
| A. | all inputs are fixed |
| B. | all inputs are variable |
| C. | some inputs are fixed and some are variable |
| D. | none of the above |
| Answer» D. none of the above | |
| 17. |
The major objective of a firm is |
| A. | profit maximization |
| B. | revenue maximization |
| C. | sales maximization |
| D. | none of the above |
| Answer» B. revenue maximization | |
| 18. |
Firms owned by stock holders are known as |
| A. | proprietorship |
| B. | partnership |
| C. | corporations |
| D. | none of the above |
| Answer» D. none of the above | |
| 19. |
Firms owned by two or more individuals is known as |
| A. | proprietorship |
| B. | partnership |
| C. | corporations |
| D. | none of the above |
| Answer» C. corporations | |
| 20. |
Firms owned by one individual is known as |
| A. | proprietorship |
| B. | partnership |
| C. | corporations |
| D. | none of the above |
| Answer» B. partnership | |
| 21. |
The functional relationship between inputs and outputs is called |
| A. | production function |
| B. | consumption function |
| C. | investment function |
| D. | saving function |
| Answer» B. consumption function | |
| 22. |
The choice of techniques of production is related to the problem of |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | none of the above |
| Answer» C. for whom to produce | |
| 23. |
Odd-man out from the following |
| A. | steel |
| B. | medicine |
| C. | education |
| D. | train |
| Answer» D. train | |
| 24. |
----- is an example of secondary input |
| A. | land |
| B. | labour |
| C. | capital |
| D. | raw material |
| Answer» E. | |
| 25. |
Transformation of inputs into outputs is known as |
| A. | production |
| B. | consumption |
| C. | distribution |
| D. | exchange |
| Answer» B. consumption | |
| 26. |
Name the economist who analyses the subject matter of economics into two branches: micro economic analysis and macro economic analysis. |
| A. | adam smith |
| B. | alfred marshall |
| C. | ragner frisc |
| D. | p a samuelson |
| Answer» D. p a samuelson | |
| 27. |
Micro economics doesn’t deal with: |
| A. | the study of individual economic units |
| B. | determination of factor prices |
| C. | price determination of commodities |
| D. | general equilibrium analysis |
| Answer» E. | |
| 28. |
Economic growth can be achieved through |
| A. | advanced technology |
| B. | expansion of resources |
| C. | both a & b |
| D. | neither a & b |
| Answer» D. neither a & b | |
| 29. |
Production and consumption takes place simultaneously in the case of |
| A. | goods |
| B. | services |
| C. | both in the case of goods and services |
| D. | neither in the case of goods and services |
| Answer» C. both in the case of goods and services | |
| 30. |
“The starting point of all economic activity is the existence of human wants†Who said this? |
| A. | adam smith |
| B. | selligman |
| C. | ricardo |
| D. | alfred marshall |
| Answer» C. ricardo | |
| 31. |
Which one of the following is not come under macro economics |
| A. | national income |
| B. | per capita income |
| C. | disposable income |
| D. | individual income |
| Answer» E. | |
| 32. |
Partial equilibrium analysis come under: |
| A. | micro economics |
| B. | macro economics |
| C. | welfare economics |
| D. | international economics |
| Answer» B. macro economics | |
| 33. |
The distribution of national product among the members of the society is the problem of: |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | all of the above |
| Answer» D. all of the above | |
| 34. |
The problem of allocation of resources is concerned with: |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | all of the above |
| Answer» B. how to produce | |
| 35. |
The term production refers to: |
| A. | producing things which are capable of satisfying human wants |
| B. | creation or addition of utilities |
| C. | transformation of inputs into output |
| D. | all of the above |
| Answer» E. | |
| 36. |
----- is not an example of free good |
| A. | sunlight |
| B. | car |
| C. | petrol |
| D. | computer |
| Answer» B. car | |
| 37. |
Which one of the following come under macro economics: |
| A. | per capita income |
| B. | study of a firm |
| C. | individual income |
| D. | theory of factor pricing |
| Answer» B. study of a firm | |
| 38. |
The resources are : |
| A. | limited |
| B. | unlimited |
| C. | not only limited but are capable of alternative uses |
| D. | none of the above |
| Answer» D. none of the above | |
| 39. |
Economic problem arises in |
| A. | planned economies |
| B. | free market economies |
| C. | mixed economies |
| D. | all of the above |
| Answer» E. | |
| 40. |
The economic problem arises since |
| A. | wants are unlimited |
| B. | resources are limited |
| C. | resources are capable of alternative uses |
| D. | all of the above |
| Answer» E. | |