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.
| 401. |
In which form of the market structure is the degree of control over the price of its product by a firm very large? |
| A. | Monopoly |
| B. | Imperfect condition |
| C. | Oligopoly |
| D. | Perfect competition |
| Answer» B. Imperfect condition | |
| 402. |
Marginal revenue is always less than price at all levels of output in |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Both 'a' and 'b' |
| D. | None of the above |
| Answer» C. Both 'a' and 'b' | |
| 403. |
Which one is increasing function of price? |
| A. | Demand |
| B. | Utility |
| C. | Supply |
| D. | Consumption |
| Answer» D. Consumption | |
| 404. |
If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be |
| A. | Horizontal |
| B. | Vertical |
| C. | Positively sloped |
| D. | Negatively sloped |
| Answer» C. Positively sloped | |
| 405. |
Discriminating monopoly implies that the monopolist charges different prices for its commodity |
| A. | From different groups of consumers |
| B. | For different uses |
| C. | At different places |
| D. | Any of the above |
| Answer» E. | |
| 406. |
An individual demand curve slopes downward to the right because of the |
| A. | Working of the law of diminishing marginal utility |
| B. | Substitution effect of decrease in price |
| C. | Income effect of fall in price |
| D. | All of the above |
| Answer» E. | |
| 407. |
Under conditions of perfect competition in the product market |
| A. | MRP = VMP |
| B. | MRP > VMP |
| C. | VMP > MRP |
| D. | None of the above |
| Answer» B. MRP > VMP | |
| 408. |
The economist's objections to monopoly rest on which of the following grounds? |
| A. | There is a transfer of income from consumers to the monopolist |
| B. | There is welfare loss as resources tend to be misallocated under monopoly |
| C. | Both A and B are incorrect |
| D. | Both A and B are correct |
| Answer» E. | |
| 409. |
Number of times a unit of money changes hands in the course of a year is called |
| A. | Supply of money |
| B. | Purchasing power of money |
| C. | Velocity of money |
| D. | Value of money |
| Answer» D. Value of money | |
| 410. |
Who is the 'lender of the last resort' in the banking structure of India? |
| A. | State bank of India |
| B. | Reserve bank of India |
| C. | EXIM bank of India |
| D. | Union bank of India |
| Answer» C. EXIM bank of India | |
| 411. |
According to Joseph Schumpeter, profit is the reward for |
| A. | Innovation |
| B. | Uncertainty-bearing |
| C. | Risk-taking |
| D. | Management |
| Answer» B. Uncertainty-bearing | |
| 412. |
An economic theory is |
| A. | An axiom |
| B. | A proposition |
| C. | A hypothesis |
| D. | A tested hypothesis |
| Answer» E. | |
| 413. |
A mixed economy is characterized by the co-existence of |
| A. | Modern and traditional industries |
| B. | Public and private sectors |
| C. | Foreign and domestic investments |
| D. | Commercial and subsistence farming |
| Answer» C. Foreign and domestic investments | |
| 414. |
In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be |
| A. | 0 |
| B. | 1 |
| C. | 1.5 |
| D. | 2 |
| Answer» C. 1.5 | |
| 415. |
The most efficient scale of production of a firm is where |
| A. | LAC is minimum |
| B. | SAC is minimum |
| C. | LMC is minimum |
| D. | SMC is minimum |
| Answer» B. SAC is minimum | |
| 416. |
Risks in the business arise because of |
| A. | Introduction of the new products |
| B. | Uncertain policy of rival firms |
| C. | Changes in tastes |
| D. | All of the above |
| Answer» E. | |
| 417. |
In a typical demand schedule, quantity demanded |
| A. | Varies directly with price |
| B. | Varies proportionately with price |
| C. | Varies inversely with price |
| D. | Is independent of price |
| Answer» D. Is independent of price | |
| 418. |
The capital that is consumed by an economy or a firm in the production process is known as |
| A. | Capital loss |
| B. | Production cost |
| C. | Dead-weight loss |
| D. | Depreciation |
| Answer» E. | |
| 419. |
An inferior commodity is one which is consumed in smaller quantities when the income of consumer |
| A. | Becomes nil |
| B. | Remains the same |
| C. | Falls |
| D. | Rises |
| Answer» E. | |
| 420. |
When Marginal Utility is positive, Total Utility |
| A. | Increases |
| B. | Decreases |
| C. | Remains constant |
| D. | Is highest |
| Answer» B. Decreases | |
| 421. |
Productivity of land can be raised by |
| A. | Extensive cultivation |
| B. | Intensive cultivation |
| C. | Better marketing |
| D. | a' and 'b' both |
| Answer» C. Better marketing | |
| 422. |
Which of the following input factor takes risk, innovates and coordinates |
| A. | Capital |
| B. | Labour |
| C. | Productivity |
| D. | Entrepreneur |
| Answer» E. | |
| 423. |
Who stated explicitly for the first time, the Law of Comparative Costs? |
| A. | David Ricardo |
| B. | Adam Smith |
| C. | James Mill |
| D. | Thomas Mun |
| Answer» B. Adam Smith | |
| 424. |
If a firm's average variable cost curve is rising, its marginal cost curve must be |
| A. | Constant |
| B. | Above the total cost curve |
| C. | Above the average variable cost curve |
| D. | All of the above |
| Answer» D. All of the above | |
| 425. |
If two goods are complements, this means that a rise in the price of one commodity will induce |
| A. | An upward shift in demand for the other commodity |
| B. | A rise in the price of the other commodity |
| C. | A downward shift in demand for the other commodity |
| D. | No shift in the demand for the other commodity |
| Answer» D. No shift in the demand for the other commodity | |
| 426. |
The cost that a firm incurs in hiring or purchasing any factor of production is referred to as |
| A. | Explicit cost |
| B. | Implicit cost |
| C. | Variable cost |
| D. | Fixed cost |
| Answer» B. Implicit cost | |
| 427. |
A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of output. The marginal cost of producing the 6th unit is |
| A. | Rs.20 |
| B. | Rs.120 |
| C. | Rs.320 |
| D. | Rs.420 |
| Answer» E. | |
| 428. |
If the price of 'X' rises by 10 percent and the quantity demanded falls by 10 percent, 'X' has |
| A. | Inelastic demand |
| B. | Unitarily elastic demand |
| C. | Zero elastic demand |
| D. | Elastic demand |
| Answer» C. Zero elastic demand | |
| 429. |
When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is |
| A. | Less than unity |
| B. | Unity |
| C. | Zero |
| D. | Greater than Unity |
| Answer» B. Unity | |
| 430. |
For ____ goods, increase in income leads to increase in demand. |
| A. | Abnormal |
| B. | Normal |
| C. | Inferior |
| D. | Superior |
| Answer» C. Inferior | |
| 431. |
A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output? |
| A. | Rs.60 |
| B. | Rs.30 |
| C. | Rs.40 |
| D. | Rs.20 |
| Answer» C. Rs.40 | |
| 432. |
If elasticity of demand is very low, it shows that the commodity is |
| A. | A necessity |
| B. | A luxury |
| C. | Has little importance in total budget |
| D. | a' and 'c' above |
| Answer» E. | |
| 433. |
Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its |
| A. | Demand |
| B. | Price |
| C. | Cost of production |
| D. | State of technology |
| Answer» C. Cost of production | |
| 434. |
Contraction of demand is the result of |
| A. | Decrease in the number of consumers |
| B. | Increase in the price of the commodity concerned |
| C. | Increase in the prices of other goods |
| D. | Decrease in the income of purchasers |
| Answer» C. Increase in the prices of other goods | |
| 435. |
Which of the following is not an essential condition of pure competition? |
| A. | Large number of buyers and sellers |
| B. | Homogeneous product |
| C. | Freedom of entry |
| D. | Absence of transport cost |
| Answer» E. | |
| 436. |
Which one is the assumption of law of demand |
| A. | Price of the commodity should not change |
| B. | Quantity demanded should not change |
| C. | Prices of substitutes should not change |
| D. | Demand curve must be linear |
| Answer» D. Demand curve must be linear | |