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.
| 301. |
The standard of living of workers depends upon their? |
| A. | Nominal wages |
| B. | Real wages |
| C. | Average product |
| D. | Government policy |
| Answer» C. Average product | |
| 302. |
Which is not a central problem of an economy?? |
| A. | What to produce |
| B. | How to produce |
| C. | How to maximize private profit |
| D. | For whom to produce |
| Answer» D. For whom to produce | |
| 303. |
All the following curves are U-shaped except? |
| A. | AVC |
| B. | AFC |
| C. | AC |
| D. | MC |
| Answer» C. AC | |
| 304. |
TC curve? |
| A. | Rises continously |
| B. | Falls after reaching a maximum |
| C. | Is horizontal |
| D. | None of the above |
| Answer» B. Falls after reaching a maximum | |
| 305. |
The Communist Manifesto, written jointly by Marx and Engels's was published in? |
| A. | 1843 |
| B. | 1848 |
| C. | 1853 |
| D. | 1859 |
| Answer» C. 1853 | |
| 306. |
Excise tax is a part of? |
| A. | Fixed cost |
| B. | Variable cost |
| C. | Implicit cost |
| D. | Is not a part of cost |
| Answer» C. Implicit cost | |
| 307. |
Unemployment of labour means that? |
| A. | A worker does not get full time job |
| B. | A worker is not happy with his present job |
| C. | A person does not get job according to his qualification |
| D. | a' and 'c' both |
| Answer» E. | |
| 308. |
In Monopoly at various output levels? |
| A. | AR=MR |
| B. | AR< label=""> <> |
| C. | AR>MR |
| D. | None of the above |
| Answer» B. AR< label=""> <> | |
| 309. |
Under law of demand? |
| A. | Price of commodity is an independent variable |
| B. | Quantity demanded is a dependent variable |
| C. | Reciprocal relationship is found between price and quantity demanded |
| D. | All of the above |
| Answer» E. | |
| 310. |
Marginal utility is equal to average utility at that time when average utility is? |
| A. | Increasing |
| B. | Maximum |
| C. | Falling |
| D. | Minimum |
| Answer» C. Falling | |
| 311. |
He described economics as a science of material welfare? |
| A. | Robbins |
| B. | Marshall |
| C. | Ricardo |
| D. | Keynes |
| Answer» C. Ricardo | |
| 312. |
A firm earns economic profit when total profit exceeds? |
| A. | Normal profit |
| B. | Implicit costs |
| C. | Explicit costs |
| D. | Variable costs |
| Answer» B. Implicit costs | |
| 313. |
Which of the following bodies finalizes the Five Year Plan Proposals?? |
| A. | Planning Commission |
| B. | Union Cabinet |
| C. | National Development Council |
| D. | Ministry of Planning |
| Answer» D. Ministry of Planning | |
| 314. |
A firm encounters its 'shutdown point' when? |
| A. | Average total cost equals price at the profit-maximizing level of output |
| B. | Average variable cost equals price at the profit-maximizing level of output |
| C. | Average fixed cost equals price at the profit-maximizing level of output |
| D. | Marginal cost equals price at the profit-maximizing level of output |
| Answer» C. Average fixed cost equals price at the profit-maximizing level of output | |
| 315. |
At the point of inflexion, the marginal product is? |
| A. | Increasing |
| B. | Decreasing |
| C. | Maximum |
| D. | Negative |
| Answer» D. Negative | |
| 316. |
When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.? |
| A. | AC = AR |
| B. | MC = AC |
| C. | MC = MR |
| D. | AR = MR |
| Answer» C. MC = MR | |
| 317. |
When ______, we know that the firms are earning just normal profits.? |
| A. | AC = AR |
| B. | MC = MR |
| C. | MC = AC |
| D. | AR = MR |
| Answer» B. MC = MR | |
| 318. |
When the price of a substitute of X commodity falls, the demand for X? |
| A. | Rises |
| B. | Falls |
| C. | Remains unchanged |
| D. | Any of the above |
| Answer» C. Remains unchanged | |
| 319. |
If marginal opportunity cost is falling, the PPF would be? |
| A. | Straight line |
| B. | Concave |
| C. | Backward leading |
| D. | Convex |
| Answer» E. | |
| 320. |
Quantity demanded is a? |
| A. | Flow concept |
| B. | Stock concept |
| C. | Both 'a' and 'b' |
| D. | None of the above |
| Answer» B. Stock concept | |
| 321. |
Which of the following is a cause of an economic problem?? |
| A. | Scarcity of resources |
| B. | Alternative uses |
| C. | Unlimited wants |
| D. | All of the above |
| Answer» E. | |
| 322. |
A monopolist is able to maximize his profits when? |
| A. | His output is maximum |
| B. | He charges high price |
| C. | His average cost is minimum |
| D. | His marginal cost is equal to marginal revenue |
| Answer» E. | |
| 323. |
If the goods are complementary like car and petrol, their cross elasticity is? |
| A. | Negative |
| B. | Positive |
| C. | Zero |
| D. | Infinite |
| Answer» B. Positive | |
| 324. |
Mr. Raees Ahamd bought 50 litres of petrol when his monthly income was Rs.25000. Now his monthly income has risen to Rs.50,000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is? |
| A. | 1 |
| B. | 100% |
| C. | Less than 1 |
| D. | More than 1 |
| Answer» B. 100% | |
| 325. |
If the demand for a commodity is inelastic, an increase in its pice will cause the total expenditure of the consumers of the commodity to? |
| A. | Remain the same |
| B. | Increase |
| C. | Decrease |
| D. | Any of the above |
| Answer» C. Decrease | |
| 326. |
A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as? |
| A. | Surplus value |
| B. | Quasi-rent |
| C. | Transfer earnings |
| D. | Super normal profits |
| Answer» C. Transfer earnings | |
| 327. |
The classical theory explained interest as a reward for? |
| A. | Parting with liquidity |
| B. | Abstinence |
| C. | Saving |
| D. | Inconvenience |
| Answer» D. Inconvenience | |
| 328. |
Supply curve is? |
| A. | Vertical in long run |
| B. | Flatter in ling run |
| C. | Same in long and short run |
| D. | Horizontal in both short and long run |
| Answer» C. Same in long and short run | |
| 329. |
The supply of a commodity refers to? |
| A. | Actual production of the commodity |
| B. | Total existing stock of the commodity |
| C. | Stock available for sale |
| D. | Amount of the commodity offered for sale at a particular price per unit of time |
| Answer» E. | |
| 330. |
A firm under perfect competition is? |
| A. | Price maker |
| B. | Price breaker |
| C. | Price taker |
| D. | Price shaker |
| Answer» D. Price shaker | |
| 331. |
What does price elasticity of demand measure?? |
| A. | Change in price caused by changes in demand |
| B. | The rate of change of sales |
| C. | The responsiveness of demand to price changes |
| D. | The value of sales at a given price |
| Answer» D. The value of sales at a given price | |
| 332. |
The consumer is in equilibrium at a point where the budget line? |
| A. | Is above an indifference curve |
| B. | Is below an indifference curve |
| C. | Is tangent to an indifference curve |
| D. | Cuts an indifference curve |
| Answer» D. Cuts an indifference curve | |
| 333. |
The situation of monopolistic competition is created by? |
| A. | Small number of producers of a commodity |
| B. | Lack of homogeneity of the product produced by different firms |
| C. | Imperfection of the market for that product |
| D. | All of the above |
| Answer» E. | |
| 334. |
The major difference between perfect competition and monopolistic competition is? |
| A. | Number of firms |
| B. | Differentiated product |
| C. | Rate of profit |
| D. | Free exit and entry |
| Answer» C. Rate of profit | |
| 335. |
Income elasticity of demand is defined as the responsiveness of? |
| A. | Quantity demanded to a change in income |
| B. | Quantity demanded to a change in price |
| C. | Price to a change in income |
| D. | Income to a change in quantity demanded |
| Answer» B. Quantity demanded to a change in price | |
| 336. |
Which statistical measure helps in measuring the purchasing power of money?? |
| A. | Arithmetic average |
| B. | Index numbers |
| C. | Harmonic mean |
| D. | Time series |
| Answer» C. Harmonic mean | |
| 337. |
In which of the following market structure is the degree of control over the price of its product by a firm very large?? |
| A. | Imperfect competition |
| B. | Perfect competition |
| C. | Monopoly |
| D. | In A and B both |
| Answer» D. In A and B both | |
| 338. |
What is meant by Autarky in international trade?? |
| A. | Monopoly in international trade |
| B. | Imposition of restrictions in international trade |
| C. | Removal of all restrictions from international trade |
| D. | The idea of self sufficiency and no international trade by a country |
| Answer» E. | |
| 339. |
____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks? |
| A. | Repo rate |
| B. | Bank rate |
| C. | Prime lending rate |
| D. | Reverse repo rate |
| Answer» C. Prime lending rate | |
| 340. |
If quantity demanded is completely unresponsive to changes in price, demand is? |
| A. | Inelastic |
| B. | Unit elastic |
| C. | Elastic |
| D. | Perfectly inelastic |
| Answer» E. | |
| 341. |
What is the shape of the average fixed cost (AFC) curve?? |
| A. | U-shape |
| B. | Horizontal up to a point and then rising |
| C. | Sloping down towards the right |
| D. | Rectangular hyperbola |
| Answer» E. | |
| 342. |
Which of the following is NOT a feature of iso-product curve? Iso-product curves? |
| A. | Are downward sloping to the right |
| B. | Show different input combination producing the same output |
| C. | Intersect each other |
| D. | Are convex to the origin |
| Answer» D. Are convex to the origin | |
| 343. |
Which is the first-order condition for the profit of a firm to be maximum?? |
| A. | AC=MR |
| B. | MC=MR |
| C. | MR=AR |
| D. | AC=AR |
| Answer» C. MR=AR | |
| 344. |
A firm should shut down in the short run if it is not covering its? |
| A. | Variable cost |
| B. | Fixed cost |
| C. | Total cost |
| D. | Explicit cost (money outlays) |
| Answer» B. Fixed cost | |
| 345. |
Indifference curves are convex to the origin because? |
| A. | Two goods are perfect substitutes |
| B. | Two goods are imperfect substitutes |
| C. | Two goods are perfect complementary goods |
| D. | None of the above |
| Answer» C. Two goods are perfect complementary goods | |
| 346. |
When the perfectly competitive firm and industry are in long run equilibrium, then? |
| A. | P = MR = SAC = LAC |
| B. | D = MR = SMC = LMC |
| C. | P = MR = Lowest point on the LAC curve |
| D. | All of the above |
| Answer» E. | |
| 347. |
Who propounded the opportunity cost theory of international trade?? |
| A. | Ricardo |
| B. | Marshall |
| C. | Heckscher & Ohlin |
| D. | Haberler |
| Answer» E. | |
| 348. |
In long run equilibrium, the pure monopolist can make pure profits because of? |
| A. | Blocked entry |
| B. | The high price he charges |
| C. | The low LAC costs |
| D. | Advertising |
| Answer» B. The high price he charges | |
| 349. |
The three broad types of productive resources are |
| A. | Money, profit and interest |
| B. | Capital, labour and natural resources |
| C. | Bond, stock shares and deposits |
| D. | Technology, human capital and markets |
| Answer» C. Bond, stock shares and deposits | |
| 350. |
Land only |
| A. | Is a free gift of nature |
| B. | Lacks geographical mobility |
| C. | Is not hirable |
| D. | a' and 'b' both |
| Answer» E. | |