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. |
*$_Which statement relates to macroeconomics?? |
| A. | Oil prices are rising in Pakistan |
| B. | Profit rate is high on textile industry |
| C. | The firms try to make huge profits |
| D. | The government has failed to control inflation |
| Answer» E. | |
| 2. |
*$_Who is the 'father of economics'?? |
| A. | Max Muller |
| B. | Adam Smith |
| C. | Karl Marx |
| D. | None of the above |
| Answer» C. Karl Marx | |
| 3. |
*$_Price-taking firms i.e., firms that operate in a perfectly competitive market, are said to be 'small' relative to the market. Which of the following best describes this smallness?? |
| A. | The individual firm must have fewer than 10 employees |
| B. | The individual firm faces a downward-sloping demand curve |
| C. | The individual firm has assets less than Rs. 20 lakhs |
| D. | The individual firm is unable to affect market price through its output decisions |
| Answer» E. | |
| 4. |
*$_Economic survey is published by? |
| A. | Ministry of Finance |
| B. | Planning Commission |
| C. | Government of India |
| D. | Indian Statistical Institute |
| Answer» B. Planning Commission | |
| 5. |
*$_If the marginal (additional) opportunity cost is a constant then the PPC would be? |
| A. | Straight line |
| B. | Convex |
| C. | Backward leading |
| D. | Concave |
| Answer» B. Convex | |
| 6. |
*$_In monopolistic competition, a firm is in long run equilibrium? |
| A. | At the minimum point of the LAC curve |
| B. | In the declining segment of the LAC curve |
| C. | In the rising segment of the LAC curve |
| D. | When price is equal to marginal cost |
| Answer» C. In the rising segment of the LAC curve | |
| 7. |
*$_The vertical difference between TVC and TC is equal to? |
| A. | MC |
| B. | AVC |
| C. | TFC |
| D. | None of the above |
| Answer» D. None of the above | |
| 8. |
*$_Excess capacity is not found under? |
| A. | Monopoly |
| B. | Monopolistic competition |
| C. | Perfect competition |
| D. | Oligopoly |
| Answer» D. Oligopoly | |
| 9. |
*$_In perfect competition, in the long run, there will be? |
| A. | Normal profits |
| B. | Super normal profits |
| C. | Less production |
| D. | Cost will be falling |
| Answer» B. Super normal profits | |
| 10. |
*$_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 | |
| 11. |
*$_In the long run, normal profits are included in the _____ curve? |
| A. | LAC |
| B. | LMC |
| C. | AFC |
| D. | SAC |
| Answer» B. LMC | |
| 12. |
*$_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 | |
| 13. |
*$_The total area under the demand curve of good measures? |
| A. | Marginal utility |
| B. | Total utility |
| C. | Consumers surplus |
| D. | Producer surplus |
| Answer» C. Consumers surplus | |
| 14. |
*$_Which is a condition for existence of monopoly?? |
| A. | Big size |
| B. | Identical product |
| C. | Absence of government taxes |
| D. | No close substitute |
| Answer» E. | |
| 15. |
*$_Income elasticity of demand for normal goods is always? |
| A. | 1 |
| B. | Negative |
| C. | More than 1 |
| D. | Positive |
| Answer» E. | |
| 16. |
*$_In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is? |
| A. | Oerfectly elastic |
| B. | Perfectly inelastic |
| C. | Less elastic |
| D. | More elastic |
| Answer» D. More elastic | |
| 17. |
*$_Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?? |
| A. | Cost of raw material |
| B. | Cost of equipment |
| C. | Interest payment on past borrowing |
| D. | Payment of rent on buildings |
| Answer» B. Cost of equipment | |
| 18. |
*$_If a firm shuts down temporarily, it will incur loss equal to? |
| A. | AFC |
| B. | AVC |
| C. | TFC |
| D. | TVC |
| Answer» D. TVC | |
| 19. |
*$_When supply of a commodity increases without change in price, it is called? |
| A. | Fall in supply |
| B. | Expansion in supply |
| C. | Contraction in supply |
| D. | Rise in supply |
| Answer» E. | |
| 20. |
*$_Which is the other name that is given to the average revenue curve?? |
| A. | Profit curve |
| B. | Demand curve |
| C. | Average cost curve |
| D. | Indifference curve |
| Answer» C. Average cost curve | |
| 21. |
*$_When marginal revenue is zero, total revenue is? |
| A. | Maximum |
| B. | Minimum |
| C. | Zero |
| D. | Decreasing |
| Answer» B. Minimum | |
| 22. |
*$_It describes the law of supply? |
| A. | Supply curve |
| B. | Supply schedule |
| C. | Supply equation |
| D. | All of the above |
| Answer» E. | |
| 23. |
*$_The budget line is also known as the? |
| A. | Iso-utility curve |
| B. | Production possibility line |
| C. | Isoquant |
| D. | Consumption possibility line |
| Answer» E. | |
| 24. |
*$_Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is? |
| A. | Uniform |
| B. | Different |
| C. | Less |
| D. | Zero |
| Answer» C. Less | |
| 25. |
*$_Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium? |
| A. | Price will decrease |
| B. | Price will increase |
| C. | Quantity will decrease |
| D. | Quantity will increase |
| Answer» D. Quantity will increase | |
| 26. |
*$_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 | |
| 27. |
*$_Law of demand shows relation between? |
| A. | Income and price of commodity |
| B. | Price and quantity of commodity |
| C. | Income and quantity demanded |
| D. | Quantity demanded and quantity supplied |
| Answer» C. Income and quantity demanded | |
| 28. |
*$_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. | |
| 29. |
*$_Other things equal, if a good has more substitutes, its price elasticity of demand is? |
| A. | Larger |
| B. | Smaller |
| C. | Zero |
| D. | Unity |
| Answer» B. Smaller | |
| 30. |
*$_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 | |
| 31. |
*$_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 | |
| 32. |
*/*_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 | |
| 33. |
*/*_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. | |
| 34. |
*/*_According to Malthus, population increases by progression of which kind?? |
| A. | Systematic |
| B. | Arithmetic |
| C. | Geometric |
| D. | Automatic |
| Answer» D. Automatic | |
| 35. |
*/*_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 | |
| 36. |
*/*_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 | |
| 37. |
*/*_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 | |
| 38. |
*/*_Diminishing marginal utility is the basis of? |
| A. | Law of supply |
| B. | Law of demand |
| C. | Law of returns |
| D. | None of the above |
| Answer» C. Law of returns | |
| 39. |
*/*_Which of the following is NOT an input?? |
| A. | Labour |
| B. | Entrepreneurship |
| C. | Natural resources |
| D. | Production |
| Answer» E. | |
| 40. |
*/*_The transformation of resources into economic goods and services is called? |
| A. | Technical efficiency |
| B. | Input |
| C. | Production |
| D. | Increasing returns |
| Answer» D. Increasing returns | |
| 41. |
*/*_The Purchasing Power Parity Theory' came into prominence in 1916 through the writings of? |
| A. | J.M.Keynes |
| B. | L.E.Von Miser |
| C. | Gustav Cassel |
| D. | F.A.von Hayek |
| Answer» D. F.A.von Hayek | |
| 42. |
*/*_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 | |
| 43. |
*/*_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 | |
| 44. |
*/*_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 | |
| 45. |
*/*_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 | |
| 46. |
*/*_Agricultural goods market depicts characteristics close to? |
| A. | Perfect competition |
| B. | Oligopoly |
| C. | Monopoly |
| D. | Monopolistic competition |
| Answer» B. Oligopoly | |
| 47. |
*/*_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. | |
| 48. |
*/*_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 | |
| 49. |
*/*_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 | |
| 50. |
*/*_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. | |