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. |
Excise tax is a part of |
| A. | ixed cost |
| B. | ariable cost |
| C. | mplicit cost |
| D. | s not a part of cost |
| Answer» C. mplicit cost | |
| 2. |
Mobility of labour |
| A. | ncreases efficiency of labour |
| B. | poils labour |
| C. | ncreases division of labour |
| D. | ' and 'c' both |
| Answer» E. | |
| 3. |
All labour is |
| A. | omogeneous |
| B. | eterogeneous |
| C. | azy |
| D. | ntelligent |
| Answer» C. azy | |
| 4. |
In Monopoly at various output levels |
| A. | R = MR |
| B. | R < MR |
| C. | R > MR |
| D. | one of the above |
| Answer» D. one of the above | |
| 5. |
In monopolistic competition, a firm is in long run equilibrium |
| A. | t the minimum point of the LAC curve |
| B. | n the declining segment of the LAC curve |
| C. | n the rising segment of the LAC curve |
| D. | hen price is equal to marginal cost |
| Answer» C. n the rising segment of the LAC curve | |
| 6. |
Which of the following is not a characteristic of a 'price taker'? |
| A. | R = P x Q |
| B. | R = Price |
| C. | egatively sloped demand |
| D. | arginal Revenue = Price |
| Answer» D. arginal Revenue = Price | |
| 7. |
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively |
| A. | arge fall in quantity demanded |
| B. | arge fall in demand |
| C. | mall fall in quantity demanded |
| D. | mall fall in demand |
| Answer» B. arge fall in demand | |
| 8. |
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. | C = AR |
| B. | C = AC |
| C. | C = MR |
| D. | R = MR |
| Answer» C. C = MR | |
| 9. |
Excess capacity is not found under |
| A. | onopoly |
| B. | onopolistic competition |
| C. | erfect competition |
| D. | ligopoly |
| Answer» D. ligopoly | |
| 10. |
_____ is an implicit cost of production |
| A. | ages of the labour |
| B. | harges for electricity |
| C. | nterest on owned money capital |
| D. | ayment for raw material |
| Answer» D. ayment for raw material | |
| 11. |
The law of variable proportions come into being when |
| A. | here are only two variable factors |
| B. | here is a fixed factor and a variable factor |
| C. | ll factors are variable |
| D. | ariable factors yield less |
| Answer» C. ll factors are variable | |
| 12. |
When the price of a substitute of X commodity falls, the demand for X |
| A. | ises |
| B. | alls |
| C. | emains unchanged |
| D. | ny of the above |
| Answer» C. emains unchanged | |
| 13. |
The vertical difference between TVC and TC is equal to |
| A. | C |
| B. | VC |
| C. | FC |
| D. | one of the above |
| Answer» D. one of the above | |
| 14. |
Consumer surplus is highest in case of |
| A. | ecessities |
| B. | uxuries |
| C. | omforts |
| D. | onventional necessities |
| Answer» B. uxuries | |
| 15. |
The economic analysis expects the consumer to behave in a manner which is |
| A. | ational |
| B. | rrational |
| C. | motional |
| D. | ndifferent |
| Answer» B. rrational | |
| 16. |
When ______, we know that the firms are earning just normal profits. |
| A. | C = AR |
| B. | C = MR |
| C. | C = AC |
| D. | R = MR |
| Answer» B. C = MR | |
| 17. |
If the marginal (additional) opportunity cost is a constant then the PPC would be |
| A. | traight line |
| B. | onvex |
| C. | ackward leading |
| D. | oncave |
| Answer» B. onvex | |
| 18. |
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. | ero |
| B. | reater than Zero but less than One |
| C. | ne |
| D. | reater than One |
| Answer» C. ne | |
| 19. |
Marginal revenue will be negative if elasticity of demand is |
| A. | ess than unity |
| B. | ore than 1 |
| C. | qual to 1 |
| D. | qual to zero |
| Answer» B. ore than 1 | |
| 20. |
At the point of inflexion, the marginal product is |
| A. | ncreasing |
| B. | ecreasing |
| C. | aximum |
| D. | egative |
| Answer» D. egative | |
| 21. |
According to Malthus, population increases by progression of which kind? |
| A. | ystematic |
| B. | rithmetic |
| C. | eometric |
| D. | utomatic |
| Answer» D. utomatic | |
| 22. |
Standard of living of a country can be raised if it increases |
| A. | abour force |
| B. | roduction |
| C. | oney supply |
| D. | xports |
| Answer» C. oney supply | |
| 23. |
Indifference curves are convex to the origin because |
| A. | wo goods are perfect substitutes |
| B. | wo goods are imperfect substitutes |
| C. | wo goods are perfect complementary goods |
| D. | one of the above |
| Answer» C. wo goods are perfect complementary goods | |
| 24. |
Larger production of ___ goods would lead to higher production in future |
| A. | onsumer goods |
| B. | apital goods |
| C. | gricultural goods |
| D. | ublic goods |
| Answer» C. gricultural goods | |
| 25. |
Under ______ market condition, firms make normal profits in the long run. |
| A. | erfect competition |
| B. | onopoly |
| C. | ligopoly |
| D. | one of the above |
| Answer» B. onopoly | |
| 26. |
A firm encounters its 'shutdown point' when |
| A. | verage total cost equals price at the profit-maximizing level of output |
| B. | verage variable cost equals price at the profit-maximizing level of output |
| C. | verage fixed cost equals price at the profit-maximizing level of output |
| D. | arginal cost equals price at the profit-maximizing level of output |
| Answer» C. verage fixed cost equals price at the profit-maximizing level of output | |
| 27. |
The short run |
| A. | s less than one year |
| B. | equires that at least one input is fixed |
| C. | equires that all inputs are fixed |
| D. | s just long enough to permit entry and exit |
| Answer» C. equires that all inputs are fixed | |
| 28. |
Utility is more closely related to the term |
| A. | seful |
| B. | seless |
| C. | ecessary |
| D. | atisfaction |
| Answer» E. | |
| 29. |
Every factor of production gets rewarded equal to its |
| A. | ost |
| B. | arginal product |
| C. | rice |
| D. | ncreasing return |
| Answer» C. rice | |
| 30. |
The Communist Manifesto, written jointly by Marx and Engels's was published in |
| A. | 843 |
| B. | 848 |
| C. | 853 |
| D. | 859 |
| Answer» C. 853 | |
| 31. |
The term 'marginal' in economics means |
| A. | nimportant |
| B. | dditional |
| C. | he minimum unit |
| D. | ust barely passing |
| Answer» C. he minimum unit | |
| 32. |
Interest is paid because |
| A. | apital is scarce |
| B. | apital is productive |
| C. | apital is attractive |
| D. | apital is surplus |
| Answer» B. apital is productive | |
| 33. |
The Critique of Political Economy, the first fruits of Karl Marx's long painstaking research at the British Museum, appeared in |
| A. | 859 |
| B. | 857 |
| C. | 855 |
| D. | 853 |
| Answer» B. 857 | |
| 34. |
All the following curves are U-shaped except |
| A. | VC |
| B. | FC |
| C. | C |
| D. | C |
| Answer» C. C | |
| 35. |
In which year, was the first volume of Das Capital by Karl Marx published? |
| A. | 848 |
| B. | 859 |
| C. | 867 |
| D. | 873 |
| Answer» D. 873 | |
| 36. |
These are kinds of rent EXCEPT |
| A. | ifferential rent |
| B. | carcity rent |
| C. | obility rent |
| D. | ocation rent |
| Answer» D. ocation rent | |
| 37. |
"Rent is a creation of value, not of wealth". Who made this observation? |
| A. | dam Smith |
| B. | avid Ricardo |
| C. | lfred Marshall |
| D. | .C.Pigou |
| Answer» C. lfred Marshall | |
| 38. |
TVC curve |
| A. | tarts from origin |
| B. | oes not start from origin |
| C. | s parallel to Y-axis |
| D. | one of the above |
| Answer» B. oes not start from origin | |
| 39. |
Human wants are |
| A. | ne thousand |
| B. | ew |
| C. | nnumerable |
| D. | ountable |
| Answer» D. ountable | |
| 40. |
"The real price of everything, what every thing really costs to the man who wants to require it, is the toil and trouble of acquiring it. Who made this statement? |
| A. | arl Marx |
| B. | dam Smith |
| C. | avid Ricardo |
| D. | .S.Mill |
| Answer» D. .S.Mill | |
| 41. |
TC curve |
| A. | tarts from origin |
| B. | oes not start from origin |
| C. | s parallel to Y-axis |
| D. | one of the above |
| Answer» C. s parallel to Y-axis | |
| 42. |
Which of the following is example of external economies of scale? |
| A. | iscount on purchases of raw materials |
| B. | echnical progress leads to development of machine at low price |
| C. | iring of specialized staff due to increase in scale of production |
| D. | firm starts producing by-products |
| Answer» C. iring of specialized staff due to increase in scale of production | |
| 43. |
The standard of living of workers depends upon their |
| A. | ominal wages |
| B. | eal wages |
| C. | verage product |
| D. | overnment policy |
| Answer» C. verage product | |
| 44. |
MC is given by |
| A. | lope of TFC |
| B. | lope of TC |
| C. | lope of AC |
| D. | one of the above |
| Answer» C. lope of AC | |
| 45. |
During short period, diminishing returns may follow because |
| A. | uantity of labour is fixed |
| B. | uantity of output is fixed |
| C. | uantity of capital is fixed |
| D. | uantity of any one factor is fixed |
| Answer» E. | |
| 46. |
The minimum wage is an example of |
| A. | rice floor |
| B. | rice ceiling |
| C. | quilibrium wage |
| D. | fficiency of labour |
| Answer» B. rice ceiling | |
| 47. |
Who first raised the fear of a world food shortage? |
| A. | avid Ricardo |
| B. | .R.Malthus |
| C. | .S.Mill |
| D. | .B.Say |
| Answer» C. .S.Mill | |
| 48. |
Law of return applies to firms working in |
| A. | erfect competition |
| B. | onopoly |
| C. | mall firm |
| D. | ll kinds of market situations |
| Answer» E. | |
| 49. |
In which form, the largest percentage of national income is earned? |
| A. | nterest income |
| B. | roprietor's income |
| C. | mployee' wages |
| D. | ental income |
| Answer» D. ental income | |
| 50. |
Identify the economist who had little formal education and started working in the money market at an early age of fourteen. |
| A. | avid Ricardo |
| B. | dam Smith |
| C. | .F.D. Pareto |
| D. | .A. Cournot |
| Answer» B. dam Smith | |