MCQOPTIONS
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MCQOPTIONS
This section includes 436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals~! |
| A. | 250/Q |
| B. | 250 |
| C. | 10 |
| D. | 250/Q + 10 |
| Answer» B. 250 | |
| 2. |
According to Malthus, population increases by progression of which kind?%! |
| A. | Systematic |
| B. | Arithmetic |
| C. | Geometric |
| D. | Automatic |
| Answer» D. Automatic | |
| 3. |
The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost?%! |
| A. | Cost of cloth |
| B. | Piece wages paid to workers |
| C. | Depreciation on machines owing to time |
| D. | Cost of electricity for running machines |
| Answer» D. Cost of electricity for running machines | |
| 4. |
Which of the following is not a feature of perfect competition?%! |
| A. | Large number of buyers and sellers |
| B. | Small number of buyers and sellers |
| C. | Free entry and exit |
| D. | Goods is homogeneous |
| Answer» C. Free entry and exit | |
| 5. |
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is%! |
| A. | Zero |
| B. | Infinite |
| C. | Equal to 1 |
| D. | Greater than zero but less than infinity |
| Answer» C. Equal to 1 | |
| 6. |
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price%! |
| A. | Equal to one |
| B. | Greater than one |
| C. | Small than one |
| D. | Zero |
| Answer» D. Zero | |
| 7. |
Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. Do you know in which year was Francois Quesnay's Tableu Economique published?%! |
| A. | 1767 |
| B. | 1764 |
| C. | 1761 |
| D. | 1758 |
| Answer» E. | |
| 8. |
Credit creation power of the commercial banks gets limited by which of the following?%! |
| A. | Banking habits of the people |
| B. | Cash Reserve Ratio |
| C. | Credit policy of the central bank |
| D. | All of the above |
| Answer» E. | |
| 9. |
Law of demand shows relation between%! |
| A. | Income and price of commodity |
| B. | Price and quantity of commodity |
| C. | Income and quantity demanded |
| D. | Quantity demanded and quantity supplied |
| Answer» C. Income and quantity demanded | |
| 10. |
Demand for a commodity refers to a%! |
| A. | Desire for the commodity |
| B. | Need for the commodity |
| C. | Quantity demanded of that commodity |
| D. | Quantity of the commodity demanded at a certain price during any particular period of time |
| Answer» E. | |
| 11. |
If demand is unitary elastic, a 25% increase in price will result in%! |
| A. | 25% change in total revenue |
| B. | No change in quantity demanded |
| C. | 1% decrease in quantity demanded |
| D. | 25% decrease in quantity demanded |
| Answer» E. | |
| 12. |
All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?%! |
| A. | The preferences of the individual |
| B. | His monetary income |
| C. | The price of the commodity under consideration |
| D. | The prices of other goods |
| Answer» D. The prices of other goods | |
| 13. |
Which one of the following pairs of commodities is an example of substitutes?%! |
| A. | Tea and sugar |
| B. | Tea and coffee |
| C. | Pen and ink |
| D. | Shirt and trousers |
| Answer» C. Pen and ink | |
| 14. |
Zubair has a special taste for college canteen's hotdogs. The owner of the canteen doubles the prices of hotdogs. Zubair did not respond to the increase in prices and kept on demanding the same quantity of hotdogs. His demand for hotdogs is%! |
| A. | Perfectly elastic |
| B. | Perfectly inelastic |
| C. | Elastic |
| D. | Less elastic |
| Answer» C. Elastic | |
| 15. |
Demand for final consumption arises in%! |
| A. | Household sector only |
| B. | Government sector only |
| C. | Both household and government sector |
| D. | Neither household nor government sector |
| Answer» D. Neither household nor government sector | |
| 16. |
The producer is in equilibrium at a point where the cost line is%! |
| A. | Above the isoquant |
| B. | Below the isoquant |
| C. | Cutting the isoquant |
| D. | Tangent to isoquant |
| Answer» E. | |
| 17. |
Agricultural goods market depicts characteristics close to%! |
| A. | Perfect competition |
| B. | Oligopoly |
| C. | Monopoly |
| D. | Monopolistic competition |
| Answer» B. Oligopoly | |
| 18. |
All of the following are determinants of demand except%! |
| A. | Tastes and preferences |
| B. | Quantity supplied |
| C. | Income |
| D. | Price of related goods |
| Answer» C. Income | |
| 19. |
In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve%! |
| A. | Marginal revenue curve |
| B. | Marginal cost curve |
| C. | Average cost curve |
| D. | None of the above |
| Answer» C. Average cost curve | |
| 20. |
Giffen goods are those goods%! |
| A. | For which demand increases as price increases |
| B. | That have a high income elasticity of demand |
| C. | That are in short supply |
| D. | None of the above |
| Answer» B. That have a high income elasticity of demand | |
| 21. |
In the long run, any firm will eventually leave the industry if%! |
| A. | Price does not at least cover average total cost |
| B. | Price does not equal marginal cost |
| C. | Economies of sale are being reaped |
| D. | Price is greater than long run average cost |
| Answer» B. Price does not equal marginal cost | |
| 22. |
If there are implicit costs of production%! |
| A. | Economic profit will be equal to accounting profit |
| B. | Economic profit will be less than accounting profit |
| C. | Economic profits will be zero |
| D. | Economic profit will be more than accounting profit. |
| Answer» C. Economic profits will be zero | |
| 23. |
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 certaintty that the equilibrium%! |
| A. | Price will decrease |
| B. | Price will increase |
| C. | Quantity will decrease |
| D. | Quantity will increase |
| Answer» D. Quantity will increase | |
| 24. |
The producer's demand for a factor of production is governed by the ____ of the factor.%! |
| A. | Price will decrease |
| B. | Marginal productivity |
| C. | Availability |
| D. | Profitability |
| Answer» C. Availability | |
| 25. |
Credit creation power of the commercial banks gets limited by which of the following?%! |
| A. | Banking habits of the people |
| B. | Cash Reserve Ratio |
| C. | Credit policy of the central bank |
| D. | All of the above |
| Answer» E. | |
| 26. |
Law of demand shows relation between%! |
| A. | Income and price of commodity |
| B. | Price and quantity of commodity |
| C. | Income and quantity demanded |
| D. | Quantity demanded and quantity supplied |
| Answer» C. Income and quantity demanded | |
| 27. |
Some economists refer to iso-product curves as%! |
| A. | Engels curve |
| B. | Production indifference curve |
| C. | Budget line |
| D. | Ridge line |
| Answer» C. Budget line | |
| 28. |
Other things equal, if a good has more substitutes, its price elasticity of demand is%! |
| A. | Larger |
| B. | Smaller |
| C. | Zero |
| D. | Unity |
| Answer» B. Smaller | |
| 29. |
Identify the aspect of taxation which is related to normative economics%! |
| A. | Incidence of tax |
| B. | Effect of tax on the capacity willingness to work |
| C. | Equity of tax |
| D. | None of the above |
| Answer» D. None of the above | |
| 30. |
If all inputs are trebled and the resultant output is doubled, this is a case of%! |
| A. | Constant returns to scale |
| B. | Increasing returns to scale |
| C. | Diminishing returns to scale |
| D. | Negative returns to scale |
| Answer» D. Negative returns to scale | |
| 31. |
If the income elasticity is greater than one, the commodity is%! |
| A. | Necessity item |
| B. | Luxury item |
| C. | Inferior good |
| D. | None |
| Answer» C. Inferior good | |
| 32. |
In the case of two perfect substitutes, the indifference curve will be%! |
| A. | Straight line |
| B. | L-shaped |
| C. | U-shaped |
| D. | C-shaped |
| Answer» B. L-shaped | |
| 33. |
Discriminating monopoly is possible if two markets have%! |
| A. | Rising cost curves |
| B. | Rising and declining cost curves |
| C. | Different elasticity of demand |
| D. | Equal elasticity of demand |
| Answer» D. Equal elasticity of demand | |
| 34. |
Which of the following is not the name of LAC curve?%! |
| A. | Planning curve |
| B. | Enveloping curve |
| C. | Round curve |
| D. | None of the above |
| Answer» D. None of the above | |
| 35. |
In perfect competition, in the long run, there will be%! |
| A. | Normal profits |
| B. | Super normal profits |
| C. | Less production |
| D. | Cost will be falling |
| Answer» B. Super normal profits | |
| 36. |
In the long run, normal profits are included in the _____ curve%! |
| A. | LAC |
| B. | LMC |
| C. | AFC |
| D. | SAC |
| Answer» B. LMC | |
| 37. |
The other name of Budget line is%! |
| A. | Demand line |
| B. | Price line |
| C. | Supply line |
| D. | None of the above |
| Answer» C. Supply line | |
| 38. |
The total area under the demand curve of good measures%! |
| A. | Marginal utility |
| B. | Total utility |
| C. | Consumers surplus |
| D. | Producer surplus |
| Answer» C. Consumers surplus | |
| 39. |
*$_MC is given by? |
| A. | Slope of TFC |
| B. | Slope of TC |
| C. | Slope of AC |
| D. | None of the above |
| Answer» C. Slope of AC | |
| 40. |
*$_Law of return applies to firms working in? |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Small firm |
| D. | All kinds of market situations |
| Answer» E. | |
| 41. |
*$_These are kinds of rent EXCEPT? |
| A. | Differential rent |
| B. | Scarcity rent |
| C. | Mobility rent |
| D. | Location rent |
| Answer» D. Location rent | |
| 42. |
*$_"The real price of everything, what every thing really costs to the man who wants to require it, is the toil and trouble of acquiring it. Who made this statement?? |
| A. | Karl Marx |
| B. | Adam Smith |
| C. | David Ricardo |
| D. | J.S.Mill |
| Answer» D. J.S.Mill | |
| 43. |
*$_Union leaders are in better position to bargain for higher wages if demand for labour is? |
| A. | Elastic |
| B. | Inelastic |
| C. | Very large |
| D. | Permanent |
| Answer» C. Very large | |
| 44. |
*$_The term 'marginal' in economics means? |
| A. | Unimportant |
| B. | Additional |
| C. | The minimum unit |
| D. | Just barely passing |
| Answer» C. The minimum unit | |
| 45. |
*$_The short run? |
| A. | Is less than one year |
| B. | Requires that at least one input is fixed |
| C. | Requires that all inputs are fixed |
| D. | Is just long enough to permit entry and exit |
| Answer» C. Requires that all inputs are fixed | |
| 46. |
*$_At the point of equilibrium of firm (under perfect competition)? |
| A. | MC curve must be rising |
| B. | MC curve must be falling |
| C. | MR cure must be rising |
| D. | None of the above |
| Answer» B. MC curve must be falling | |
| 47. |
*$_As output increases? |
| A. | MC curve initially falls and then rises |
| B. | MC initially rises and then falls |
| C. | MC continuously rises |
| D. | None of the above |
| Answer» B. MC initially rises and then falls | |
| 48. |
*$_Mobility of labour? |
| A. | Increases efficiency of labour |
| B. | Spoils labour |
| C. | Increases division of labour |
| D. | a' and 'c' both |
| Answer» E. | |
| 49. |
*$_When total utility becomes maximum, then marginal utility will be? |
| A. | Minimum |
| B. | Average |
| C. | Zero |
| D. | Negative |
| Answer» D. Negative | |
| 50. |
*$_Total utility of a commodity is measured by which price of that commodity?? |
| A. | Value in use |
| B. | Value in exchange |
| C. | Both of above |
| D. | None of above |
| Answer» B. Value in exchange | |