Explore topic-wise MCQs in General Knowledge.

This section includes 1254 Mcqs, each offering curated multiple-choice questions to sharpen your General Knowledge knowledge and support exam preparation. Choose a topic below to get started.

601.

If the production possibilities curve was a straight line, this would imply that

A. Economic resources are perfectly substitutable, in the production of the two products
B. Equal quantities of both products are produced at each possible point on the curve
C. The two products will sell at the same market price
D. The two products are equally important to consumers
Answer» D. The two products are equally important to consumers
Discussion
602.

If the rupee depreciates, how the exporters are affected?

A. They are unaffected
B. They are in loss
C. They are in profit
D. They get credit crunch
Answer» D. They get credit crunch
Discussion
603.

If the average total cost are Rs 54, total fixed cost is Rs 45000 and quantity produced is 2500 units, find the average variable costs (in Rs) of the firm?

A. 24
B. 18
C. 36
D. 60
Answer» D. 60
Discussion
604.

If the average total cost are Rs 54, average variable cost is Rs 36 and quantity produced is 2500 units, find the total fixed costs (in Rs) of the firm?

A. 30000
B. 15000
C. 45000
D. 60000
Answer» D. 60000
Discussion
605.

If the break­even quantity for a factory whose variable cost of manufacturing a cell is Rs. 15 and selling price is Rs. 24 is 2,400 units, find the fixed cost of the factory?

A. Rs. 21600
B. Rs. 36000
C. Rs. 57600
D. Rs. 14400
Answer» B. Rs. 36000
Discussion
606.

If the average total cost are Rs 2400, average variable cost is Rs 1700 and quantity produced is 75 units, find the total fixed costs of the firm?

A. Rs 52500
B. Rs 127500
C. Rs 180000
D. Rs 60000
Answer» B. Rs 127500
Discussion
607.

If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the average revenue is zero.

A. Perfect Competition
B. Monopoly
C. Oligopoly
D. Monopolistic Competition
Answer» B. Monopoly
Discussion
608.

If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.

A. Perfect Competition
B. Monopoly
C. Oligopoly
D. Monopolistic Competition
Answer» C. Oligopoly
Discussion
609.

If tea companies start using mechanised tea leave pickers

A. more people would want to work as tea leave pickers
B. unemployment of tea leave pickers will decrease
C. more tea will be produced per acre
D. then wages for manual tea leave pickers will fall
Answer» E.
Discussion
610.

If Reserve Bank of India reduces the cash reserve ratio, it will :

A. increase credit creation
B. decrease credit creation
C. have no impact on credit creation
D. have no definite impact on credit creation
Answer» B. decrease credit creation
Discussion
611.

If saving exceeds investment, the national income will ___________.

A. fall
B. fluctuate
C. remain constant
D. rise_x005F_x000D_
Answer» D. rise_x005F_x000D_
Discussion
612.

If quantity of good X demanded increases from 4000 units to 5000 units when price of good Y increases from Rs 75 to Rs 90, find Arc Cross elasticity of demand?

A. 0.55
B. 1.66
C. 0.25
D. 1.22
Answer» E.
Discussion
613.

If quantity of good X demanded increases from 2300 to 2700 when price of good Y increases from Rs. 45 to Rs. 55, find Arc Cross elasticity of demand?

A. 4
B. 1.25
C. 0.25
D. 0.8
Answer» E.
Discussion
614.

If quantity of a good demanded increases from 200 to 250 then the average income of the population increases from Rs 20,000 to Rs 30,000, find Arc Income elasticity of demand?

A. 1.45
B. 0.55
C. 2
D. 1.25
Answer» C. 2
Discussion
615.

If price of an article decreases from Rs P1 to Rs 190, when quantity demanded increases from 5000 units to 5200 units, and if point elasticity of demand is -0.8 find P1?

A. Rs 220
B. Rs 240
C. Rs 200
D. Rs 250
Answer» D. Rs 250
Discussion
616.

If price of an article decreases from Rs P1 to Rs 75, quantity demanded increases from 1000 units to 1200 units. If point elasticity of demand is ­3.2 findmP1?

A. Rs 85
B. Rs 80
C.
D. Rs 95
Answer» C.
Discussion
617.

If price of an article decreases from Rs 800 to Rs 700, quantity demanded increases from Q1 units to 70 units. If point elasticity of demand is -1.333 find Q1?

A. 80 units
B. 90 units
C. 60 units
D. 50 units
Answer» D. 50 units
Discussion
618.

If price of an article decreases from Rs 80 to Rs 60, quantity demanded increases from 600 units to 750 units. Find point elasticity of demand?

A. -1
B. 1
C. -1.25
D. 1.25
Answer» B. 1
Discussion
619.

If price of an article decreases from Rs 600 to Rs 500, when quantity demanded increases from 10000 units to 12000 units. Find point elasticity of demand?

A. -1.2
B. 1.2
C. -1.5
D. 1.5
Answer» B. 1.2
Discussion
620.

If price of an article decreases from Rs 40 to Rs 30, quantity demanded increases from Q1 units to 7500 units. If point elasticity of demand is -1 find Q1?

A. 9000 units
B. 4500 units
C. 10500 units
D. 6000 units
Answer» E.
Discussion
621.

If price of an article decreases from Rs. 12 to Rs. 10, quantity demanded increases from 1000 units to 1400 units. Find point elasticity of demand?

A. 2.4
B. -2
C. -2.4
D. 2
Answer» D. 2
Discussion
622.

If price of an article decreases from Rs 100 to Rs 80, when quantity demanded increases from Q1 units to 4600 units, and if point elasticity of demand is 0.75 find Q1?

A. 5000 units
B. 4000 units
C. 3000 units
D. 2000 units
Answer» C. 3000 units
Discussion
623.

If price of an article decreases from Rs. 25 to Rs. 20, quantity demanded increases from Q1 units to 1500 units. If point elasticity of demand is -1.25, find Q1?

A. 900 units
B. 1200 units
C. 1800 units
D. 2000 units
Answer» C. 1800 units
Discussion
624.

If one more baker is hired the output of a bakery will increase from 1250 breads to 1400 breads per day, but then the bakery will have to reduce the price of the bread from Rs 15 to Rs 14 per unit to sell the additional output, the marginal revenue product of the last baker is _______.

A. Rs 850
B. Rs 150
C. Rs 1960
D. Rs 1875
Answer» B. Rs 150
Discussion
625.

If intermediate goods and services were included in GDP

A. the price level may change over time.
B. the GDP would be overstated.
C. the price level rose by more than nominal GDP.
D. All of the above
Answer» C. the price level rose by more than nominal GDP.
Discussion
626.

If hiring an extra worker increases a brick making unit's output from 2000 to 2250 units per day, but the factory has to reduce the price of its brick from Rs 15 to Rs 14 per brick to sell the additional output, the marginal revenue product of the last worker is

A. Rs 1500
B. Rs 250
C. Rs 3000
D. Rs 100
Answer» B. Rs 250
Discussion
627.

If Money supply growth is faster than real GDP growth, it results in _____.

A. Inflation
B. deflation
C. budget surplus
D. budget deficit
Answer» B. deflation
Discussion
628.

If hiring an extra worker increases a factory's output from 1000 to 1200 units per day, but the factory has to reduce the price of its product from Rs. 25 to Rs. 24 per unit to sell the additional output, the marginal revenue product of the last worker is

A. Rs. 3800
B. Rs. 200
C. Rs. 4000
D. Rs. 100
Answer» B. Rs. 200
Discussion
629.

If goods A and Z are complements, an increase in the price of good Z will _____.

A. increase demand for good A
B. decrease demand for good A
C. decrease demand for good Z
D. increase demand for good Z
Answer» C. decrease demand for good Z
Discussion
630.

If for the year a country's GDP was $990 million, consumer spending was $630 million, investment by businesses was $110 million, exports were $55 million and imports were $45 million, calculate government spending?

A. $260 million
B. $240 million
C. $480 million
D. $460 million
Answer» C. $480 million
Discussion
631.

If for a perfectly competitive firm, price is Rs. 60, output is 300 units, average variable costs are Rs. 18, and average total costs are Rs. 36. The firm's profits are equal to

A. Rs. 5400
B. Rs. 3600
C. Rs. 7200
D. Rs. 1800
Answer» D. Rs. 1800
Discussion
632.

If for the year a country's GDP was $ 1315 million, consumer spending was $900 million, investment by businesses was $180 million, exports were $85 million and imports were $100 million, calculate government spending?

A. $220 million
B. $250 million
C. $580 million
D. $610 million
Answer» C. $580 million
Discussion
633.

If for a perfectly competitive firm, price is Rs 7.2, output is 4500 units, average variable costs are Rs 1.2, and average total costs are Rs 4. The firm's profits are equal to

A. Rs 7200
B. Rs 9000
C. Rs 14400
D. Rs 19800
Answer» D. Rs 19800
Discussion
634.

If expenses are paid in cash then

A. assets will decrease.
B. assets will increase.
C. liabilities will decrease.
D. stockholders' equity will increase.
Answer» B. assets will increase.
Discussion
635.

If demand curve for roller skates is D = 23000 - 19P and supply curve is S = 18000 + 6P, find the equilibrium Price?

A. Rs 100
B. Rs 400
C. Rs 50
D. Rs 200
Answer» E.
Discussion
636.

If demand curve for renting a car is D = 90000 -­ 23P and supply curve is S = 9000 + 7P, find the equilibrium Price?

A. Rs 1800
B. Rs 900
C. Rs 3600
D. Rs 2700
Answer» E.
Discussion
637.

If depreciation exceeds gross investment

A. the economy's stock of capital is growing
B. the economy's stock of capital may be either growing or shrinking
C. net investment is zero
D. the economy's stock of capital is shrinking
Answer» E.
Discussion
638.

If demand curve for trekking boots is D = 67500 - 18P and supply curve is S = 22500 + 12P, find the equilibrium Price?

A. 1500
B. 750
C. 2250
D. 500
Answer» B. 750
Discussion
639.

If demand curve for radial car tyres is D = 230000 ­ 19P and supply curve is S = 180000 + 6P, find the equilibrium Quantity?

A. 19200 units
B. 291000 units
C. 29100 units
D. 192000 units
Answer» E.
Discussion
640.

If demand curve for house cleaning services is D = 45000 - 21P and supply curve is S = 15000 + 9P, find the equilibrium Quantity?

A. 12000 units
B. 6000 units
C. 24000 units
D. 30000 units
Answer» D. 30000 units
Discussion
641.

If demand curve for racing cycles is D = 59600 - 6P and supply curve is S = 29600 + 4P, find the equilibrium Quantity?

A. 118000
B. 300
C. 41600
D. 6000
Answer» D. 6000
Discussion
642.

If demand curve for racing cycles is D = 80200 ­ 13P and supply curve is S = 6200 + 12P, What is the equilibrium Quantity?

A. 2960 units
B. 31220 units
C. 8750 units
D. 41720 units
Answer» E.
Discussion
643.

If demand curve for an electric tooth brush is D = 25000 -­ 7P and supply curve is S = 10000 + 8P, find the equilibrium Price?

A. Rs 150
B. Rs 1000
C. Rs 400
D. Rs 50
Answer» C. Rs 400
Discussion
644.

If cash reserve ratio decreases, credit creation will _______.

A. increase
B. decrease
C. does not change
D. first decreases than increases
Answer» B. decrease
Discussion
645.

If a person's income increases from Rs. 10 lakhs per year to Rs. 11 lakhs per year and tax increases from Rs. 80,000 to Rs. 92,500 the marginal tax rate is

A. 0.125
B. 0.08
C. 0.1
D. 0.15
Answer» B. 0.08
Discussion
646.

If an unintended increase in business inventories occurs

A. aggregate expenditures must exceed the domestic output
B. we can expect businesses to lower the level of production
C. we can expect aggregate production to be unaffected
D. we can expect businesses to increase the level of production
Answer» C. we can expect aggregate production to be unaffected
Discussion
647.

If at a price, market supply is greater than market demand, we say that there is ________ in the market at that price.

A. Equilibrium
B. Excess Demand
C. Excess Supply
D. Marginal Revenue
Answer» D. Marginal Revenue
Discussion
648.

If a person's income increases from Rs 20 lakhs per year to Rs 24 lakhs per year and tax increases from Rs 3,50,000 to Rs 4,00,000 the marginal tax rate is

A. 8 percent
B. 12.5 percent
C. 10 percent
D. 15 percent
Answer» C. 10 percent
Discussion
649.

If a perfectly competitive firm can increase its profits by increasing its output, then that firm's product's _____.

A. price exceeds its marginal costs
B. price exceeds its average total costs
C. average variable costs exceed its average total costs
D. fixed costs are zero
Answer» B. price exceeds its average total costs
Discussion
650.

If a country devalues its currency, its _______________

A. Exports become cheaper and imports become costlier
B. Exports become costlier and imports become cheaper.
C. Exports value is equivalent to imports value
D. No effect on exports and imports
Answer» B. Exports become costlier and imports become cheaper.
Discussion