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. |
Elasticity of demand with respect to price is |
| A. | <table><tr><td rowspan="2">elasticity = </td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>%change in demand</center></td></tr><tr><td style="text-align: center;">%change in price</td></tr></table> |
| B. | <table><tr><td rowspan="2">elasticity = </td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>%change in price</center></td></tr><tr><td style="text-align: center;">%change in demand</td></tr></table> |
| C. | <table><tr><td rowspan="2">elasticity = </td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>%change in demand</center></td></tr><tr><td style="text-align: center;">%change in supply </td></tr></table> |
| D. | <table><tr><td rowspan="2">elasticity = </td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>%change in supply</center></td></tr><tr><td style="text-align: center;">%change in price</td></tr></table> |
| Answer» B. <table><tr><td rowspan="2">elasticity = </td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>%change in price</center></td></tr><tr><td style="text-align: center;">%change in demand</td></tr></table> | |
| 2. |
Expenditure on advertisement and public relations by an enterprise is a part of its |
| A. | consumption of fixed capital |
| B. | final consumption expenditure |
| C. | intermediate consumption |
| D. | fixed capital |
| Answer» D. fixed capital | |
| 3. |
At Break-even point , |
| A. | the industry is in equilibrium in the long-run. |
| B. | the producers suffers the minimum losses |
| C. | the seller earns maximum profit |
| D. | the firm is at zero-profit point |
| Answer» E. | |
| 4. |
If a firm is operating at loss in the short-period in perfect combination, it should : |
| A. | decrease the production and the price. |
| B. | increase the production and the price |
| C. | continue to operate as long as it covers even the variable costs. |
| D. | shut-down and leave the industry |
| Answer» D. shut-down and leave the industry | |
| 5. |
The demand for labour is called |
| A. | Market demand |
| B. | Direct demand |
| C. | Derived demand |
| D. | Factory demand |
| Answer» D. Factory demand | |
| 6. |
If a good has negative income elasticity and positive price elasticity of demand, it is a |
| A. | giffen good |
| B. | normal good |
| C. | superior good |
| D. | an inferior good |
| Answer» B. normal good | |
| 7. |
Which of the following cost curve is never U shaped ? |
| A. | Marginal cost curve |
| B. | Average variable cost curve |
| C. | Average fixed cost curve |
| D. | Average cost curve |
| Answer» D. Average cost curve | |
| 8. |
A short-term government security paper is called |
| A. | Share |
| B. | Debenture |
| C. | Mutual fund |
| D. | Treasury bill |
| Answer» E. | |
| 9. |
In a perfectly competitive market, a firm s |
| A. | Average Revenue is always equal to Marginal Revenue |
| B. | Marginal Revenue is more than Average Revenue |
| C. | Average Revenue is more than Marginal Revenue |
| D. | Marginal Revenue and Average Revenue are never equal |
| Answer» B. Marginal Revenue is more than Average Revenue | |
| 10. |
The addition to total cost by producing an additional unit of output by a firm is called |
| A. | Variable cost |
| B. | Average cost |
| C. | Marginal cost |
| D. | Opportunity cost |
| Answer» D. Opportunity cost | |
| 11. |
Which activity is not included in production ? |
| A. | Production of wheat by a farmer |
| B. | Production of medicines by a company |
| C. | Services given by a nurse in hospital |
| D. | Services done by a house-wife in her own house |
| Answer» E. | |
| 12. |
Indirect tax means : |
| A. | there is not direct relationship between the tax payer and the government. |
| B. | direct relationship between tax payer and the government. |
| C. | tax base is income |
| D. | the incidence and impact are on the same person on whom tax is imposed. |
| Answer» B. direct relationship between tax payer and the government. | |
| 13. |
Per capita income = |
| A. | <table><tr><td rowspan="2"></td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>Net National Product</center></td></tr><tr><td style="text-align: center;">Total Population</td></tr></table> |
| B. | <table><tr><td rowspan="2"></td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>Total Population</center></td></tr><tr><td style="text-align: center;">National Income</td></tr></table> |
| C. | <table><tr><td rowspan="2"></td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>Gross National Product</center></td></tr><tr><td style="text-align: center;">Total Population</td></tr></table> |
| D. | <table><tr><td rowspan="2"></td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>National Income</center></td></tr><tr><td style="text-align: center;">Total Population</td></tr></table> |
| Answer» D. <table><tr><td rowspan="2"></td><td style="border-bottom:1px solid #000000;vertical-align:bottom;padding-bottom:2px;"><center>National Income</center></td></tr><tr><td style="text-align: center;">Total Population</td></tr></table> | |
| 14. |
Disinvestements is |
| A. | offloading of shares of privates companies to government |
| B. | offloading of government shares to private companies |
| C. | increase in investment |
| D. | closing down of business concerns |
| Answer» C. increase in investment | |
| 15. |
What is selling cost ? |
| A. | Cost incurred on transportation of commodities to market |
| B. | Cost incurred on promoting the sale of the product |
| C. | Cost incurred on commission and salaries personnel |
| D. | Cost incurred on advertisement |
| Answer» C. Cost incurred on commission and salaries personnel | |
| 16. |
The most distinguishing feature of oligopaly is |
| A. | number of firms |
| B. | interdependence |
| C. | negligible influence on price |
| D. | price leadership |
| Answer» C. negligible influence on price | |
| 17. |
Consumer s surplus is the highest in the case of: |
| A. | durable goods |
| B. | luxuries |
| C. | comforts |
| D. | necessities |
| Answer» E. | |
| 18. |
Price theory is also known as |
| A. | Macro Economics |
| B. | Development Economics |
| C. | Public Economics |
| D. | Micro Economics |
| Answer» E. | |
| 19. |
When the price of a commodity falls, we can expect |
| A. | the supply of it to increase |
| B. | the demand for it to fall |
| C. | the demand for it to stay constant |
| D. | the demand for it to increase |
| Answer» E. | |
| 20. |
Tooth paste is a product sold under : |
| A. | Monopolistic Competition |
| B. | Perfect Competition |
| C. | Monopoly |
| D. | Duopoly |
| Answer» B. Perfect Competition | |
| 21. |
In a Capitalistic Economy, the prices are determined by : |
| A. | Demand and Supply |
| B. | Government Authorities |
| C. | Buyers in the Market |
| D. | Sellers in the Market |
| Answer» B. Government Authorities | |
| 22. |
Cross elasticity of demand between petrol and car is |
| A. | infinite |
| B. | positive |
| C. | zero |
| D. | negative |
| Answer» E. | |
| 23. |
Extension or contraction of quantity demanded of a commodity is a result of a change in the |
| A. | unit price of the commodity |
| B. | income of the consumer |
| C. | tastes of the consumer |
| D. | climate of the region |
| Answer» B. income of the consumer | |
| 24. |
Interest is a reward for parting with liquidity is according to |
| A. | Keynes |
| B. | Marshall |
| C. | Haberler |
| D. | Ohlin |
| Answer» B. Marshall | |
| 25. |
Opportunity cost of production of a commodity is |
| A. | the cost that the firm could have incurred when a different technique was adopted |
| B. | the cost that the firm could have incurred under a different method of production |
| C. | the actual cost incurred |
| D. | the next best alternative output |
| Answer» E. | |
| 26. |
If two commodities are complements, then their cross-price elasticity is |
| A. | zero |
| B. | positive |
| C. | negative |
| D. | imaginary number |
| Answer» D. imaginary number | |
| 27. |
In Economics the Utility and Usefulness have |
| A. | same meaning |
| B. | different meaning |
| C. | opposite meaning |
| D. | None of the above |
| Answer» C. opposite meaning | |
| 28. |
Production function explains the relationship between |
| A. | initial inputs and ultimate output |
| B. | inputs and ultimate consumption |
| C. | output and consumption |
| D. | output and exports |
| Answer» B. inputs and ultimate consumption | |
| 29. |
An exceptional demand curve is one that moves |
| A. | upward to the right |
| B. | downward to the right |
| C. | horizontally |
| D. | vertically |
| Answer» C. horizontally | |
| 30. |
Which of the following would not constitute an economic activity in Economics ? |
| A. | A teacher teaching students in his college |
| B. | A teacher teaching students in a coaching institute |
| C. | A teacher teaching his own daughter at home |
| D. | A teacher teaching students under Sarva Shiksha Abbiyan Scheme |
| Answer» D. A teacher teaching students under Sarva Shiksha Abbiyan Scheme | |
| 31. |
The excess of price a person is to pay rather than forego the |
| A. | Price |
| B. | Profit |
| C. | Producers surplus |
| D. | Consumer s surplus |
| Answer» D. Consumer s surplus | |
| 32. |
Economics is what it ought to be - This statement refers to |
| A. | Normative economics |
| B. | Positive economics |
| C. | Monetary economics |
| D. | Fiscal economics |
| Answer» B. Positive economics | |
| 33. |
Consumer s sovereignty means: |
| A. | consumers are free to spend their income as they like. |
| B. | consumers have the power to manage the economy. |
| C. | consumer s expenditures influence the alloca tion of resources. |
| D. | consumer goods are free from government control. |
| Answer» B. consumers have the power to manage the economy. | |
| 34. |
A fall in demand or rise in supply of a commodity |
| A. | Increases the price of that commodity |
| B. | decreases the price of that commodity |
| C. | neutralises the changes in the price |
| D. | determines the price elasticity |
| Answer» C. neutralises the changes in the price | |
| 35. |
Who said, Economics is the Science of Wealth ? |
| A. | Robbins |
| B. | J.S. Mill |
| C. | Adam Smith |
| D. | Keynes |
| Answer» D. Keynes | |
| 36. |
The situation in which total Revenues equals total cost, is known as : |
| A. | Monopolistic competition |
| B. | Equilibrium level of output |
| C. | Break even point |
| D. | Perfect competition |
| Answer» D. Perfect competition | |
| 37. |
Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its |
| A. | long-run marginal cost curve |
| B. | long-run average cost curve |
| C. | long-run average variable cost curve |
| D. | long-run average revenue curve |
| Answer» C. long-run average variable cost curve | |
| 38. |
Who propounded the Innovation theory of profits ? |
| A. | J.A. Schumpeter |
| B. | P.A. Samuelson |
| C. | Alfred Marshall |
| D. | David Ricardo |
| Answer» B. P.A. Samuelson | |
| 39. |
The degree of monopoly power is to be measured in terms of the firm s |
| A. | normal profit |
| B. | supernormal profit |
| C. | both normal and supernormal profit |
| D. | selling price |
| Answer» C. both normal and supernormal profit | |
| 40. |
Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a |
| A. | change in the price of the goods |
| B. | change in the price of substitutes |
| C. | change in the price of the complements |
| D. | change in the price of joint products |
| Answer» B. change in the price of substitutes | |
| 41. |
Equilibrium price is the price when : |
| A. | supply is greater than demand |
| B. | supply is less than demand |
| C. | demand is very high |
| D. | supply is equal to demand |
| Answer» E. | |
| 42. |
The market price is related to : |
| A. | very short period |
| B. | short period |
| C. | long period |
| D. | very long period |
| Answer» B. short period | |
| 43. |
Which one of the following is having elastic demand ? |
| A. | Electricity |
| B. | Medicines |
| C. | Rice |
| D. | Match boxes |
| Answer» B. Medicines | |
| 44. |
For an inferior good, demand falls when |
| A. | price rises |
| B. | income rise |
| C. | price falls |
| D. | income falls |
| Answer» C. price falls | |
| 45. |
Which of the following is an inverted U shaped curve ? |
| A. | Average cost |
| B. | Marginal cost |
| C. | Total cost |
| D. | Fixed cost |
| Answer» B. Marginal cost | |
| 46. |
In which market structure is the demand curve of the market represented by the demand curve of the firm ? |
| A. | Monopoly |
| B. | Oligopoly |
| C. | Duopoly |
| D. | Perfect Competition |
| Answer» B. Oligopoly | |
| 47. |
Which of the following is not a fixed cost ? |
| A. | Salaries of administrative staff |
| B. | Rent of factory biilding |
| C. | Property taxes |
| D. | Electricity charges |
| Answer» B. Rent of factory biilding | |
| 48. |
Consumption function expresses the relationship between consumption and |
| A. | savings |
| B. | income |
| C. | investment |
| D. | price |
| Answer» C. investment | |
| 49. |
Cost of production of the producer is given by: |
| A. | sum of wages paid to labourers. |
| B. | sum of wages and interest paid on capital. |
| C. | sum of wages, interest, rent and supernormal profit. |
| D. | sum of wages, interest, rent and normal profit. |
| Answer» E. | |
| 50. |
Exploitation of labour is said to exist when |
| A. | Wage = Marginal Revenue Product |
| B. | Wage < Marginal Revenue Product |
| C. | Wage > Marginal Revenue Product |
| D. | Marginal Revenue Product = 0 |
| Answer» C. Wage > Marginal Revenue Product | |