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.
| 101. |
*/*_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. | |
| 102. |
*/*_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 | |
| 103. |
*/*_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 | |
| 104. |
*/*_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 | |
| 105. |
*/*_Standard of living of a country can be raised if it increases? |
| A. | Labour force |
| B. | Production |
| C. | Money supply |
| D. | Exports |
| Answer» C. Money supply | |
| 106. |
*/*_The total effect of a price change of a commodity is? |
| A. | Sustitution effect plus price effect |
| B. | Substitution effect plus income effect |
| C. | Substitution effect plus demonstration effect |
| D. | Substitution effect minus income effect |
| Answer» C. Substitution effect plus demonstration effect | |
| 107. |
*/*_A firm under perfect competition will be making minimum losses (in the short run) at a point where? |
| A. | MC>MR |
| B. | MR>MC |
| C. | MC=MR |
| D. | AC=AR |
| Answer» D. AC=AR | |
| 108. |
*/*_If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to? |
| A. | Increase |
| B. | Decrease |
| C. | Remain the same |
| D. | Become zero |
| Answer» B. Decrease | |
| 109. |
*/*_Price and demand are positively correlated in case of? |
| A. | Normal goods |
| B. | Comforts |
| C. | Giffen goods |
| D. | Luxuries |
| Answer» D. Luxuries | |
| 110. |
*/*_In the short run, when the output of a firm increases, its average fixed cost? |
| A. | Increases |
| B. | Decreases |
| C. | Remains constant |
| D. | First declines and then rises |
| Answer» C. Remains constant | |
| 111. |
*/*_Which among the following is a function of the Reserve Bank of India?? |
| A. | Bank issues the letters of credit to their customers certifying their credibility |
| B. | Collecting and compilation of statistical information relating to banking & other financial sector |
| C. | Banks underwrite the securities issued by public or private organizations |
| D. | Accepting deposits from the public |
| Answer» C. Banks underwrite the securities issued by public or private organizations | |
| 112. |
*/*_Who defined Economics as a 'science which studies human behaviour as a relationship betweeen ends and means which have alternative uses'?? |
| A. | L. Robbins |
| B. | Alfred Marshall |
| C. | Joan Robinson |
| D. | Paul A. Samuelson |
| Answer» B. Alfred Marshall | |
| 113. |
*/*_Microeconomics deals with the? |
| A. | Allocation of resources of the economy as between production of different goods and services |
| B. | Determination of prices of goods and services |
| C. | Behavior of industrial decision makers |
| D. | All of the above |
| Answer» E. | |
| 114. |
*/*_Which of the following is also known as plant curves?? |
| A. | Long-run average cost (LAC) curves |
| B. | Short-run average cost (SAC) curves |
| C. | Average variable cost (AVC) curves |
| D. | Average total cost (ATC) curves |
| Answer» C. Average variable cost (AVC) curves | |
| 115. |
*/*_Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is? |
| A. | 10% |
| B. | 30% |
| C. | 3 |
| D. | 1 |
| Answer» D. 1 | |
| 116. |
*/*_The cost of one thing in terms of the alternative given up is called? |
| A. | Real cost |
| B. | Production cost |
| C. | Physical cost |
| D. | Opportunity cost |
| Answer» E. | |
| 117. |
*/*_Demand for factors of production is? |
| A. | Derived demand |
| B. | Joint demand |
| C. | Composite demand |
| D. | None of the above |
| Answer» B. Joint demand | |
| 118. |
*/*_Which among the following statement is INCORRECT?? |
| A. | Floating exchange rate system works on the market mechanism |
| B. | Floating exchange rate breeds uncertainties and speculation |
| C. | Economic and political factors and value judgement influence the choice of the exchange rate system |
| D. | The system of floating exchange rate requires comprehensive government intervention |
| Answer» E. | |
| 119. |
%_An isoquant slopes_% |
| A. | Downward to the left |
| B. | Downward to the right |
| C. | Upward to the right |
| D. | Upward to the left |
| Answer» C. Upward to the right | |
| 120. |
%_In case of inferior goods, the income elasticity is_% |
| A. | Zero |
| B. | Positive |
| C. | Negative |
| D. | None |
| Answer» D. None | |
| 121. |
%_Price discrimination is not possible in case of_% |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» B. Monopoly | |
| 122. |
%_A higher indifference curve shows_% |
| A. | A higher level of satisfaction |
| B. | A higher level of production |
| C. | A higher level of income |
| D. | None of the above |
| Answer» B. A higher level of production | |
| 123. |
%_The degree of monopoly power is measured in terms of difference between_% |
| A. | Marginal cost and the price |
| B. | Marginal cost and average revenue |
| C. | Marginal cost and average cost |
| D. | Marginal revenue and average cost |
| Answer» B. Marginal cost and average revenue | |
| 124. |
%_The LAC curve_% |
| A. | Falls when the LMC curve falls |
| B. | Rises when the LMC curve rises |
| C. | Goes through the lowest point of the LMC curve |
| D. | Falls when LMCLAC |
| Answer» E. | |
| 125. |
%_Profits are_% |
| A. | Residual payment |
| B. | Pre-determined |
| C. | Fixed contract |
| D. | Always higher than wages |
| Answer» B. Pre-determined | |
| 126. |
%_The long run is a_% |
| A. | Period of three years or longer |
| B. | Period long enough to allow firms to change plant size and capacity |
| C. | Period long enough to allow firm to make economic decisions |
| D. | A period which affects larger than smaller firms |
| Answer» C. Period long enough to allow firm to make economic decisions | |
| 127. |
%_During short period, diminishing returns may follow because_% |
| A. | Quantity of labour is fixed |
| B. | Quantity of output is fixed |
| C. | Quantity of capital is fixed |
| D. | Quantity of any one factor is fixed |
| Answer» E. | |
| 128. |
%_In which form, the largest percentage of national income is earned?_% |
| A. | Interest income |
| B. | Proprietor's income |
| C. | Employee' wages |
| D. | Rental income |
| Answer» D. Rental income | |
| 129. |
%_"Rent is a creation of value, not of wealth". Who made this observation?_% |
| A. | Adam Smith |
| B. | David Ricardo |
| C. | Alfred Marshall |
| D. | A.C.Pigou |
| Answer» C. Alfred Marshall | |
| 130. |
%_TC curve_% |
| A. | Starts from origin |
| B. | Does not start from origin |
| C. | Is parallel to Y-axis |
| D. | None of the above |
| Answer» C. Is parallel to Y-axis | |
| 131. |
%_Who is generally regarded as the founder of the 'Classical School'?_% |
| A. | David Ricardo |
| B. | Adam Smith |
| C. | T.R.Malthus |
| D. | J.S.Mill |
| Answer» C. T.R.Malthus | |
| 132. |
%_Interest is paid because_% |
| A. | Capital is scarce |
| B. | Capital is productive |
| C. | Capital is attractive |
| D. | Capital is surplus |
| Answer» B. Capital is productive | |
| 133. |
%_According to Keynes, interest is a payment for_% |
| A. | Consumer's preference |
| B. | Producer's preference |
| C. | Liquidity preference |
| D. | State Bank's preference |
| Answer» D. State Bank's preference | |
| 134. |
%_Utility is more closely related to the term_% |
| A. | Useful |
| B. | Useless |
| C. | Necessary |
| D. | Satisfaction |
| Answer» E. | |
| 135. |
%_The labour force participation rate is the_% |
| A. | Proportion of population that is working |
| B. | Proportion of population working or looking for work |
| C. | Proportion of skilled workers population |
| D. | Proportion of female workers to male workers |
| Answer» D. Proportion of female workers to male workers | |
| 136. |
%_Normal profit is_% |
| A. | Part of total cost |
| B. | Part of economic profit |
| C. | Total revenue minus total cost |
| D. | Total revenue minus implicit cost |
| Answer» B. Part of economic profit | |
| 137. |
%_Mixed economy means an economy where_% |
| A. | Both agriculture and industry are equally promoted by the state |
| B. | There is co-existence of public sector along with private sector |
| C. | There is importance of small scale industries along with heavy industries |
| D. | Economy is controlled by military as well as civilian rulers |
| Answer» C. There is importance of small scale industries along with heavy industries | |
| 138. |
%_At the point of satiety, marginal utility is_% |
| A. | Zero |
| B. | Positive |
| C. | Maximum |
| D. | Negative |
| Answer» C. Maximum | |
| 139. |
%_Unit cost is another name for_% |
| A. | MC |
| B. | AVC |
| C. | ATC |
| D. | AFC |
| Answer» D. AFC | |
| 140. |
%_Scarcity means_% |
| A. | Non-availibility of goods |
| B. | High price of goods |
| C. | Less supply than demand |
| D. | High profit of the firms |
| Answer» D. High profit of the firms | |
| 141. |
%_Who expressed the view that 'Economics should be neutral between ends'?_% |
| A. | Robbins |
| B. | Marshall |
| C. | Pigou |
| D. | Adam Smith |
| Answer» B. Marshall | |
| 142. |
_ Larger production of ___ goods would lead to higher production in future$? |
| A. | Consumer goods |
| B. | Capital goods |
| C. | Agricultural goods |
| D. | Public goods |
| Answer» C. Agricultural goods | |
| 143. |
_ If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of$? |
| A. | Zero |
| B. | Greater than Zero but less than One |
| C. | One |
| D. | Greater than One |
| Answer» C. One | |
| 144. |
_ Which of the following is not a characteristic of a 'price taker'?$? |
| A. | TR = P x Q |
| B. | AR = Price |
| C. | Negatively sloped demand |
| D. | Marginal Revenue = Price |
| Answer» D. Marginal Revenue = Price | |
| 145. |
_ Consumer surplus is highest in case of$? |
| A. | Necessities |
| B. | Luxuries |
| C. | Comforts |
| D. | Conventional necessities |
| Answer» B. Luxuries | |
| 146. |
_ _____ is an implicit cost of production$? |
| A. | Wages of the labour |
| B. | Charges for electricity |
| C. | Interest on owned money capital |
| D. | Payment for raw material |
| Answer» D. Payment for raw material | |
| 147. |
_ MC curve cuts ______ curves at their minimum points$? |
| A. | AVC and AC |
| B. | AFC and AVC |
| C. | AC and AFC |
| D. | All of the above |
| Answer» B. AFC and AVC | |
| 148. |
_ The LAC curve$? |
| A. | Falls when the LMC curve falls |
| B. | Rises when the LMC curve rises |
| C. | Goes through the lowest point of the LMC curve |
| D. | Falls when LMCLAC |
| Answer» E. | |
| 149. |
_ When two goods are perfect substitutes of each other, then$? |
| A. | MRS is falling |
| B. | MRS is rising |
| C. | MRS is constant |
| D. | None of the above |
| Answer» D. None of the above | |
| 150. |
_ The shape of PPC is concave due to$? |
| A. | Falling opportunity cost between two goods |
| B. | Rising opportunity cost between two goods |
| C. | Constant opportunity cost between two goods |
| D. | None of the above |
| Answer» C. Constant opportunity cost between two goods | |