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. |
The average _________ and output have inverse functional relationship. |
| A. | fixed cost |
| B. | variable cost |
| C. | marginal cost |
| D. | total cost |
| Answer» B. variable cost | |
| 2. |
________ refers to the market situations whether there is one seller and there is not closesubstitute to the commodity sold by the seller. |
| A. | Perfect Competition |
| B. | Monopoly |
| C. | Oligopoly |
| D. | Monopolistic Competition |
| Answer» C. Oligopoly | |
| 3. |
Micro-economics deals with the ___________ |
| A. | economic behavior of the individual |
| B. | economy as a whole |
| C. | trade relations |
| D. | economic growth of the society |
| Answer» B. economy as a whole | |
| 4. |
The concept of ‘Consumer Surplus’ was introduced in Economics by |
| A. | Prof. Robbins |
| B. | Prof. Samuelson |
| C. | Prof. Smith |
| D. | Prof. Marshall |
| Answer» E. | |
| 5. |
Total Outlay Method of measuring Elasticity of Demand was introduced by _________ |
| A. | Stanley Jevons |
| B. | Alfred Marshall |
| C. | Adam Smith |
| D. | J.R. Hicks |
| Answer» C. Adam Smith | |
| 6. |
In the case of a perfectly competitive firm, the demand curve for product is |
| A. | Elastic |
| B. | unit elastic |
| C. | perfectly elastic |
| D. | perfectly inelastic |
| Answer» D. perfectly inelastic | |
| 7. |
Cash Money is created by the _________________ |
| A. | Central Bank of a country |
| B. | Commercial Banks |
| C. | State Bank of India |
| D. | Co-operative Banks |
| Answer» B. Commercial Banks | |
| 8. |
Which one of the following cost can never become zero? |
| A. | Average cost |
| B. | Fixed cost |
| C. | Marginal cost |
| D. | Variable cost |
| Answer» C. Marginal cost | |
| 9. |
The Growth definition of Economics was introduced by |
| A. | J.M.Keynes and P.A. Samuelson |
| B. | Adam Smith |
| C. | Alfred Marshall |
| D. | Lionel Robbins |
| Answer» B. Adam Smith | |
| 10. |
________ defined economics as a science which deals with wealth. |
| A. | J.B. Say |
| B. | A.C.Pigou |
| C. | Alfred Marshall |
| D. | Lionel Robbins |
| Answer» B. A.C.Pigou | |
| 11. |
If a firm produces 200 units of commodity X by employing 10 workers and 240 units of thesame commodity by employing 12 workers, then the Average Product of the worker is |
| A. | 20 |
| B. | 40 |
| C. | 200 |
| D. | 240 |
| Answer» B. 40 | |
| 12. |
In a firm doubles all inputs, and output doubles as well, the firm is subject to |
| A. | constant returns to scale |
| B. | increasing returns to scale |
| C. | decreasing returns to scale |
| D. | economies of scale |
| Answer» B. increasing returns to scale | |
| 13. |
Money market is controlled by the ___________ |
| A. | RBI |
| B. | Government |
| C. | IDBI |
| D. | IMF |
| Answer» B. Government | |
| 14. |
All the factors of production become variable in the |
| A. | Short run |
| B. | long run |
| C. | very short run 2 |
| D. | very long run |
| Answer» C. very short run 2 | |
| 15. |
Traditional function of a commercial bank is ______________ |
| A. | issue of gift cheque |
| B. | credit creation |
| C. | providing locker facilities |
| D. | acceptance of deposits |
| Answer» E. | |
| 16. |
The rate at which the commercial banks borrow from the RBI is called as __________ |
| A. | REPO |
| B. | PLR |
| C. | BPLR |
| D. | Bank Rate |
| Answer» E. | |
| 17. |
Wealth was defined by |
| A. | Alfred Marshall |
| B. | Adam Smith |
| C. | Robbins |
| D. | Jacob |
| Answer» C. Robbins | |
| 18. |
Which of the first order condition for the profit of a firm be maximum? |
| A. | AC = MR |
| B. | MC = MR |
| C. | MR = AR |
| D. | AC = AR |
| Answer» C. MR = AR | |
| 19. |
______ means the desire backed by the necessary purchasing power. |
| A. | Consumption |
| B. | Production |
| C. | Investment |
| D. | Demand |
| Answer» E. | |
| 20. |
Point Elasticity was propounded by ________________ |
| A. | Alfred Marshall |
| B. | Adam Smith |
| C. | Lionel Robbins |
| D. | Jacob Viner |
| Answer» B. Adam Smith | |
| 21. |
The supply curve always slopes ___________ |
| A. | Upwards |
| B. | Downwards |
| C. | both (A) and (B) |
| D. | neither (A) nor (B) |
| Answer» B. Downwards | |
| 22. |
Which factor of production is considered as a produced means of production? |
| A. | Land |
| B. | Labour |
| C. | Capital |
| D. | Organisation |
| Answer» D. Organisation | |
| 23. |
When the price elasticity of demand is equal to one, the demand curve is |
| A. | rectangular hyperbola |
| B. | parallel to the horizontal axis. |
| C. | parallel to the vertical axis |
| D. | negatively sloped straight line |
| Answer» B. parallel to the horizontal axis. | |
| 24. |
When excess demand occurs in an unregulated market, there is a tendency for: |
| A. | price to rise |
| B. | quantity supplied to decrease |
| C. | quantity demanded to increase |
| D. | price to fall |
| Answer» B. quantity supplied to decrease | |
| 25. |
On the basis of area, markets are classified into _________ types. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» C. 4 | |
| 26. |
Oligopoly means _________ |
| A. | Single seller |
| B. | few sellers |
| C. | large number of sellers |
| D. | no buyers |
| Answer» C. large number of sellers | |
| 27. |
Dynamic Pricing is mostly followed by |
| A. | Automobile Manufacturing Companies |
| B. | Cooking Gas Supplying Companies |
| C. | On-line Companies |
| D. | Brand Name Food Companies |
| Answer» D. Brand Name Food Companies | |
| 28. |
___________ market is the nerve centre of the financial system. |
| A. | Money |
| B. | Capital |
| C. | Local |
| D. | National |
| Answer» B. Capital | |
| 29. |
The Law of Variable Proportions relates to _________ only. |
| A. | long – run |
| B. | short – run |
| C. | very long run |
| D. | very short run |
| Answer» C. very long run | |
| 30. |
PT = MV is the equation suggested by |
| A. | J.M. Keynes |
| B. | A.W. Phillips |
| C. | Irving Fisher |
| D. | A.C.Pigou |
| Answer» D. A.C.Pigou | |
| 31. |
If the proportionate change in the supply is equal to the proportionate change in price, it issaid to be _______ supply. |
| A. | Unitary Elastic |
| B. | Perfectly Inelastic |
| C. | Perfectly Elastic |
| D. | Relatively Inelastic |
| Answer» B. Perfectly Inelastic | |
| 32. |
A rational producer produces in that region where |
| A. | marginal physical product of the fixed input becomes negative |
| B. | marginal physical product of the variable input becomes negative |
| C. | marginal physical product of the fixed input becomes increasing |
| D. | marginal physical product of the variable input becomes declining |
| Answer» E. | |
| 33. |
The money supply affects the rate of interest; when the money supply increases, rate ofinterest will be decreased. It is explained by _____________ |
| A. | Keynes |
| B. | Walker |
| C. | Robbins |
| D. | Crowther |
| Answer» B. Walker | |
| 34. |
The ____ states that bad money drives good money out of circulation. |
| A. | Law of Demand |
| B. | Law of Supply |
| C. | Gresham’s Law |
| D. | Demand Schedule |
| Answer» D. Demand Schedule | |
| 35. |
________ refers to the quantity of a commodity which a firm is willing to produce and offer forsale. |
| A. | Individual Supply |
| B. | Market Supply |
| C. | Individual Demand |
| D. | Market Demand |
| Answer» B. Market Supply | |
| 36. |
Which one of the following is not a factor of production? |
| A. | Land |
| B. | Labour |
| C. | Capital |
| D. | Bank Loan |
| Answer» E. | |
| 37. |
_____________ is the father of Economics. 9 |
| A. | Adam Smith |
| B. | Alfred Marshall |
| C. | Lionel Robbins |
| D. | J.R. Hicks |
| Answer» B. Alfred Marshall | |
| 38. |
Law of Variable Proportions was developed by _____________ |
| A. | Alfred Marshall |
| B. | Adam Smith |
| C. | Robbins |
| D. | Jacob |
| Answer» B. Adam Smith | |
| 39. |
_________ demand is also known as Direct Demand. |
| A. | Derived |
| B. | Autonomous |
| C. | Individual |
| D. | Consumption |
| Answer» C. Individual | |
| 40. |
__________ cost remains constant even if production is stopped. |
| A. | Fixed |
| B. | Variable |
| C. | Semi-Variable |
| D. | Marginal |
| Answer» B. Variable | |
| 41. |
Quantity Theory of Money was explained by ___________ |
| A. | Fisher |
| B. | Keynes |
| C. | Crowther |
| D. | Samuelson |
| Answer» B. Keynes | |
| 42. |
As output increases, AFC of a firm |
| A. | Increases |
| B. | remains constant |
| C. | continuously declines |
| D. | initially increases, afterwards declines |
| Answer» D. initially increases, afterwards declines | |
| 43. |
In the case of inferior goods, the consumer |
| A. | purchases less with increase in income |
| B. | purchases less with decrease in price |
| C. | purchases more with increase in income |
| D. | purchases more with decrease in price |
| Answer» B. purchases less with decrease in price | |
| 44. |
Production creates __________ utility. |
| A. | Place |
| B. | Time |
| C. | Form |
| D. | possession |
| Answer» D. possession | |
| 45. |
Marginal cost is defined as |
| A. | the change in total cost due to one unit change in output. |
| B. | the change in total cost due to one unit change in input. |
| C. | the ratio of total cost to total output |
| D. | the ratio of total cost to total input |
| Answer» B. the change in total cost due to one unit change in input. | |
| 46. |
Production creates _________ utility. |
| A. | Place |
| B. | Time |
| C. | Form |
| D. | Possession |
| Answer» D. Possession | |
| 47. |
SDRs are used in place of _________ |
| A. | commercial papers |
| B. | gold |
| C. | shares |
| D. | company deposits |
| Answer» C. shares | |
| 48. |
The AR curve and industry demand curve are identical |
| A. | in case of monopoly |
| B. | in case of oligopoly |
| C. | in case of monopolistic competition |
| D. | in case of perfect competition |
| Answer» E. | |
| 49. |
Due to the operation of ‘Laws of return to Scale’ LAC curve is |
| A. | Rectangular hyperbola |
| B. | U-Shaped |
| C. | Parallel to the horizontal axis |
| D. | Parallel to the vertical axis |
| Answer» C. Parallel to the horizontal axis | |
| 50. |
When the price of a complementary product falls, the demand for the other product will ___ |
| A. | Fall |
| B. | Increase |
| C. | remain stable |
| D. | drop by 25 per cent |
| Answer» C. remain stable | |