McqMate
1. |
The economic problem arises since |
A. | wants are unlimited |
B. | resources are limited |
C. | resources are capable of alternative uses |
D. | all of the above |
Answer» D. all of the above |
2. |
Economic problem arises in |
A. | planned economies |
B. | free market economies |
C. | mixed economies |
D. | all of the above |
Answer» D. all of the above |
3. |
The resources are : |
A. | limited |
B. | unlimited |
C. | not only limited but are capable of alternative uses |
D. | none of the above |
Answer» C. not only limited but are capable of alternative uses |
4. |
----- is not an example of free good |
A. | sunlight |
B. | car |
C. | petrol |
D. | computer |
Answer» A. sunlight |
5. |
The term production refers to: |
A. | producing things which are capable of satisfying human wants |
B. | creation or addition of utilities |
C. | transformation of inputs into output |
D. | all of the above |
Answer» D. all of the above |
6. |
The problem of allocation of resources is concerned with: |
A. | what to produce |
B. | how to produce |
C. | for whom to produce |
D. | all of the above |
Answer» A. what to produce |
7. |
The distribution of national product among the members of the society is the problem of: |
A. | what to produce |
B. | how to produce |
C. | for whom to produce |
D. | all of the above |
Answer» C. for whom to produce |
8. |
Which one of the following come under macro economics: |
A. | per capita income |
B. | study of a firm |
C. | individual income |
D. | theory of factor pricing |
Answer» A. per capita income |
9. |
Which one of the following is not come under macro economics |
A. | national income |
B. | per capita income |
C. | disposable income |
D. | individual income |
Answer» D. individual income |
10. |
Partial equilibrium analysis come under: |
A. | micro economics |
B. | macro economics |
C. | welfare economics |
D. | international economics |
Answer» A. micro economics |
11. |
“The starting point of all economic activity is the existence of human wants” Who said this? |
A. | adam smith |
B. | selligman |
C. | ricardo |
D. | alfred marshall |
Answer» B. selligman |
12. |
Production and consumption takes place simultaneously in the case of |
A. | goods |
B. | services |
C. | both in the case of goods and services |
D. | neither in the case of goods and services |
Answer» B. services |
13. |
Economic growth can be achieved through |
A. | advanced technology |
B. | expansion of resources |
C. | both a & b |
D. | neither a & b |
Answer» C. both a & b |
14. |
Micro economics doesn’t deal with: |
A. | the study of individual economic units |
B. | determination of factor prices |
C. | price determination of commodities |
D. | general equilibrium analysis |
Answer» D. general equilibrium analysis |
15. |
Name the economist who analyses the subject matter of economics into two branches: micro economic analysis and macro economic analysis. |
A. | adam smith |
B. | alfred marshall |
C. | ragner frisc |
D. | p a samuelson |
Answer» C. ragner frisc |
16. |
Transformation of inputs into outputs is known as |
A. | production |
B. | consumption |
C. | distribution |
D. | exchange |
Answer» A. production |
17. |
----- is an example of secondary input |
A. | land |
B. | labour |
C. | capital |
D. | raw material |
Answer» D. raw material |
18. |
Odd-man out from the following |
A. | steel |
B. | medicine |
C. | education |
D. | train |
Answer» C. education |
19. |
The choice of techniques of production is related to the problem of |
A. | what to produce |
B. | how to produce |
C. | for whom to produce |
D. | none of the above |
Answer» B. how to produce |
20. |
The functional relationship between inputs and outputs is called |
A. | production function |
B. | consumption function |
C. | investment function |
D. | saving function |
Answer» A. production function |
21. |
Firms owned by one individual is known as |
A. | proprietorship |
B. | partnership |
C. | corporations |
D. | none of the above |
Answer» A. proprietorship |
22. |
Firms owned by two or more individuals is known as |
A. | proprietorship |
B. | partnership |
C. | corporations |
D. | none of the above |
Answer» B. partnership |
23. |
Firms owned by stock holders are known as |
A. | proprietorship |
B. | partnership |
C. | corporations |
D. | none of the above |
Answer» C. corporations |
24. |
The major objective of a firm is |
A. | profit maximization |
B. | revenue maximization |
C. | sales maximization |
D. | none of the above |
Answer» A. profit maximization |
25. |
Which one of the following is an example of fixed input |
A. | raw materials |
B. | casual workers |
C. | plant and equipments |
D. | all of the above |
Answer» C. plant and equipments |
26. |
In short-run |
A. | all inputs are fixed |
B. | all inputs are variable |
C. | some inputs are fixed and some are variable |
D. | none of the above |
Answer» C. some inputs are fixed and some are variable |
27. |
In long-run |
A. | all inputs are fixed |
B. | all inputs are variable |
C. | some inputs are fixed and some are variable |
D. | none of the above |
Answer» B. all inputs are variable |
28. |
The variable cost of a firm vary in direct proportion to the |
A. | volume of its output |
B. | extent of its profits |
C. | volume of its sale |
D. | all of the above |
Answer» A. volume of its output |
29. |
Law of variable proportions is concerned with |
A. | long-run production function |
B. | laws of returns to scale |
C. | short-run production function |
D. | none of the above |
Answer» C. short-run production function |
30. |
The ‘point of inflection’ come in which stage of the law of variable proportions |
A. | stage i |
B. | stage ii |
C. | stage iii |
D. | none of the above |
Answer» A. stage i |
31. |
A rational producer will select his level of production in which stage of the law of variable proportions |
A. | stage i |
B. | stage ii |
C. | stage iii |
D. | either stage i or stage ii |
Answer» B. stage ii |
32. |
Total product reaches at maximum when |
A. | mp is increasing |
B. | mp is maximum |
C. | mp = 0 |
D. | mp is negative |
Answer» C. mp = 0 |
33. |
Returns to scale refers to the production function where |
A. | all factors are fixed |
B. | some factors are fixed and others are variable |
C. | all factors are variable |
D. | none of the above |
Answer» C. all factors are variable |
34. |
In the case of diminishing returns to scale, a given proportionate increase in all factors causes |
A. | a more than proportionate increase in output |
B. | an equal proportionate increase in output |
C. | a less than proportionate increase in output |
D. | none of the above |
Answer» C. a less than proportionate increase in output |
35. |
Increasing returns to scale occurs due to |
A. | division of labour |
B. | specialization |
C. | economies of scale |
D. | all of the above |
Answer» D. all of the above |
36. |
The cause for diminishing returns to scale is: |
A. | improper proportion of factors of production |
B. | difficulty in the combination of certain factors |
C. | excess combination of certain factors |
D. | all of the above |
Answer» D. all of the above |
37. |
The solution to diminishing returns to scale is : |
A. | technical progress |
B. | expansion of resources |
C. | proper combination or resources |
D. | all of the above |
Answer» D. all of the above |
38. |
Which one of the following is not related to economies of scale: |
A. | scope for division of labour and specialization |
B. | scope for getting inputs at cheaper rates |
C. | difficulty faces by the managers to coordinate the business |
D. | scope for better storage facilities |
Answer» C. difficulty faces by the managers to coordinate the business |
39. |
The law of Diminishing returns is applicable to: |
A. | agriculture only |
B. | industry only |
C. | in short-run only |
D. | universally |
Answer» D. universally |
40. |
labourers are employed the firm produces 136 units of output. Then the marginal product is --- |
A. | 120 |
B. | 136 |
C. | 6 |
D. | 16 |
Answer» C. 6 |
41. |
Other things remaining the same, the quantity of a product demanded increases with ------------ in price. |
A. | increase |
B. | decrease |
C. | variation |
D. | none of the above |
Answer» B. decrease |
42. |
When total utility is maximum, marginal utility is: |
A. | maximum |
B. | one |
C. | zero |
D. | infinite |
Answer» C. zero |
43. |
For complementary goods, the cross elasticity of demand: |
A. | positive |
B. | negative |
C. | zero |
D. | none |
Answer» B. negative |
44. |
Relation between price of a commodity and demand for another commodity is measured by: |
A. | price elasticity |
B. | income elasticity |
C. | cross elasticity |
D. | elasticity of substitution |
Answer» C. cross elasticity |
45. |
When TU falls, MU is: |
A. | rises |
B. | zero |
C. | positive |
D. | negative |
Answer» D. negative |
46. |
Demand varies ------------- with price. |
A. | directly |
B. | positively |
C. | inversely |
D. | none of the above |
Answer» C. inversely |
47. |
When Q = f (P), the elasticity coefficient is measured by: |
A. | ∆q/∆p / p/q |
B. | ∆p/∆q * q/p |
C. | ∆q/∆p * p/q |
D. | ∆p/∆q / q/p |
Answer» C. ∆q/∆p * p/q |
48. |
Income elasticity of demand for inferior good is: |
A. | negative |
B. | positive |
C. | zero |
D. | unity |
Answer» A. negative |
49. |
In the case of luxury goods, the income elasticity of demand will be: |
A. | less than unity |
B. | unity |
C. | more than unity |
D. | all the above |
Answer» C. more than unity |
50. |
Income elasticity is positive, but less than unity in the case of: |
A. | necessity |
B. | luxury |
C. | inferior |
D. | substitutes |
Answer» A. necessity |
51. |
In drawing an individual demand curve for a commodity, all but which of the following are kept constant: |
A. | individual’s money income |
B. | the prices of the related commodity |
C. | price of the commodity under consideration |
D. | tastes of the consumer |
Answer» C. price of the commodity under consideration |
52. |
When an individual’s income rises, when everything else remains the same, his demand for normal goods: |
A. | rises |
B. | falls |
C. | remains the same |
D. | any of the above is possible |
Answer» A. rises |
53. |
When an individual’s income falls, when everything else remains the same, his demand for inferior goods: |
A. | increases |
B. | decreases |
C. | remains unchanged |
D. | cannot say |
Answer» A. increases |
54. |
When the price of the substitute commodity of X falls, the demand for X: |
A. | rises |
B. | falls |
C. | remains unchanged |
D. | all of the above is possible |
Answer» B. falls |
55. |
If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is: |
A. | greater than |
B. | one equal to one |
C. | smaller than one |
D. | zero |
Answer» D. zero |
56. |
If the income elasticity of demand is greater than one, then the commodity is: |
A. | necessity |
B. | luxury |
C. | inferior |
D. | non-related commodity |
Answer» A. necessity |
57. |
Which of the following is an exception to the law of demand? |
A. | giffen good |
B. | normal good |
C. | superior good |
D. | all of the above |
Answer» A. giffen good |
58. |
The law of diminishing marginal utility was popularized by: |
A. | keynes |
B. | marshall |
C. | smith |
D. | samuelson |
Answer» B. marshall |
59. |
If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is: |
A. | luxury |
B. | necessity |
C. | giffen’s goods |
D. | independent good |
Answer» B. necessity |
60. |
Cross elasticity of demand in the case of substitutes: |
A. | zero |
B. | negative |
C. | positive |
D. | infinity |
Answer» C. positive |
61. |
If a small change in price leads to infinitely large change in quantity demanded, then the demand is: |
A. | perfectly elastic |
B. | perfectly inelastic |
C. | elastic |
D. | inelastic |
Answer» A. perfectly elastic |
62. |
Net addition to total utility when one more unit is consumed is: |
A. | au |
B. | mu |
C. | mc |
D. | tu |
Answer» B. mu |
63. |
Most important determinant of demand is : |
A. | income |
B. | wealth |
C. | price |
D. | advertisement |
Answer» C. price |
64. |
Which of the following is the reason for law of demand: |
A. | price effect |
B. | backlash effect |
C. | income effect |
D. | real balance effect |
Answer» C. income effect |
65. |
Net addition to total cost is called: |
A. | marginal cost |
B. | average cost |
C. | fixed cost |
D. | variable cost |
Answer» A. marginal cost |
66. |
The market equilibrium for a commodity is determined by : |
A. | market demand |
B. | market supply |
C. | balancing of the forces of demand and supply |
D. | any of the above |
Answer» C. balancing of the forces of demand and supply |
67. |
When there are only few sellers of the commodity, the market is called: |
A. | monopoly |
B. | duopoly |
C. | oligopoly |
D. | monopsony |
Answer» C. oligopoly |
68. |
If the supply curve of the commodity is having a positive slope, a rise in the price of the commodity, results in: |
A. | increase in supply |
B. | increase in quantity supplied |
C. | decrease in supply |
D. | decrease in quantity supplied |
Answer» B. increase in quantity supplied |
69. |
From the position of stable equilibrium, the market supply of a commodity decreases, while the market demand remains unchanged, then: |
A. | equilibrium price falls |
B. | equilibrium quantity rises |
C. | both equilibrium price and equilibrium quantity decreases |
D. | equilibrium price rises, but equilibrium quantity falls |
Answer» D. equilibrium price rises, but equilibrium quantity falls |
70. |
Elasticity of supply for a positively sloped straight line supply curve that intersects the price axis is: |
A. | equal to zero |
B. | equal to one |
C. | greater than one |
D. | constant |
Answer» C. greater than one |
71. |
In which of the following market, advertisement is absent: |
A. | monopolistic competition |
B. | perfect competition |
C. | oligopoly |
D. | none of the above |
Answer» C. oligopoly |
72. |
-------------- cost can never become zero. |
A. | variable cost |
B. | fixed cost |
C. | marginal cost |
D. | average cost |
Answer» B. fixed cost |
73. |
If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is: |
A. | inelastic |
B. | elastic |
C. | unitary elastic |
D. | perfectly elastic |
Answer» A. inelastic |
74. |
If a positively sloped linear supply curve passes through the origin, the elasticity of supply is |
A. | inelastic |
B. | elastic |
C. | unitary elastic |
D. | perfectly elastic |
Answer» C. unitary elastic |
75. |
Average cost is the sum of AVC and |
A. | mc |
B. | tc |
C. | afc |
D. | atc |
Answer» C. afc |
76. |
The horizontal supply curve parallel to quantity axis represents |
A. | elastic supply |
B. | inelastic supply |
C. | perfectly elastic supply |
D. | perfectly inelastic supply |
Answer» C. perfectly elastic supply |
77. |
When output is zero, variable cost is -------- |
A. | maximum |
B. | minimum |
C. | infinity |
D. | zero |
Answer» D. zero |
78. |
Change in quantity supplied of a product can result from |
A. | changes in own price |
B. | changes in cost of production |
C. | change in technology |
D. | change in price of related products |
Answer» A. changes in own price |
79. |
At prices above the equilibrium price |
A. | quantity supplied exceeds quantity demanded |
B. | quantity demanded exceeds quantity supplied |
C. | there is shortage |
D. | all of the above is possible |
Answer» A. quantity supplied exceeds quantity demanded |
80. |
When MC cuts AC, AC is at its ------------ |
A. | maximum |
B. | minimum |
C. | zero |
D. | negative |
Answer» B. minimum |
81. |
Cost function relates cost to |
A. | input |
B. | output |
C. | raw material |
D. | machines |
Answer» B. output |
82. |
An increase in market demand, supply remaining the same results in |
A. | decrease in equilibrium price |
B. | decrease in equilibrium quantity |
C. | decrease in equilibrium price and increase in equilibrium quantity |
D. | both equilibrium price and quantity rises |
Answer» D. both equilibrium price and quantity rises |
83. |
There is no distinction between firm and industry in |
A. | perfect competition |
B. | monopoly |
C. | monopolistic competition |
D. | oligopoly |
Answer» B. monopoly |
84. |
A fall in the market demand, supply remaining the same results in |
A. | increase in equilibrium price |
B. | increase in equilibrium quantity |
C. | increase in equilibrium price and decrease in equilibrium quantity |
D. | both equilibrium price and quantity falls |
Answer» D. both equilibrium price and quantity falls |
85. |
The cost of next best alternative is called |
A. | marginal cost |
B. | average cost |
C. | opportunity cost |
D. | direct cost |
Answer» C. opportunity cost |
86. |
When MC is greater than AC, AC |
A. | rises |
B. | falls |
C. | maximum |
D. | minimum |
Answer» A. rises |
87. |
There is ------- relationship between price and quantity supplied |
A. | positive |
B. | negative |
C. | constant |
D. | inverse |
Answer» A. positive |
88. |
Supply curve represents -------- relationship between quantity and price |
A. | direct |
B. | inverse |
C. | either direct or inverse |
D. | none of the above |
Answer» A. direct |
89. |
National Income means: |
A. | gnp at factor cost |
B. | gnp at market price |
C. | nnp at factor cost |
D. | nnp at market price |
Answer» C. nnp at factor cost |
90. |
The difference between GDP and NDP equals: |
A. | transfer payments |
B. | net indirect taxes |
C. | net factor income from abroad |
D. | depreciation |
Answer» D. depreciation |
91. |
Which of the following is true? |
A. | gnp + depreciation = nnp |
B. | gnp = gdp + net factor income from abroad |
C. | ndp = gnp minus net indirect taxes |
D. | nnp = dgp minus depreciation |
Answer» B. gnp = gdp + net factor income from abroad |
92. |
NNP is equal to: |
A. | gnp plus depreciation |
B. | gnp minus depreciation |
C. | gnp minus exports |
D. | gnp plus exports |
Answer» B. gnp minus depreciation |
93. |
Which of the following is not a method of national income estimation? |
A. | matrix method |
B. | income method |
C. | expenditure method |
D. | product method |
Answer» A. matrix method |
94. |
An accounting year in India is: |
A. | calendar year |
B. | academic year |
C. | fiscal year |
D. | none of these |
Answer» C. fiscal year |
95. |
Increase in real National Income (NI) means increase in: |
A. | ni at current prices |
B. | ni at constant prices |
C. | both |
D. | none of these |
Answer» B. ni at constant prices |
96. |
Net indirect taxes means: |
A. | indirect taxes plus subsidies |
B. | income minus taxes |
C. | indirect taxes minus subsidies |
D. | exports minus imports |
Answer» C. indirect taxes minus subsidies |
97. |
Net factor income from abroad shows the difference between: |
A. | gdp and ndp |
B. | nnp and ndp |
C. | gnp and gdp |
D. | gnp and nnp |
Answer» C. gnp and gdp |
98. |
Per capita income is equal to: |
A. | population/national income |
B. | national income/population |
C. | national income/gdp |
D. | nnp/gnp |
Answer» B. national income/population |
99. |
National income in India is estimated by: |
A. | rbi |
B. | nsso |
C. | cso |
D. | world bank |
Answer» C. cso |
100. |
The first estimate of National income in India was done by: |
A. | k.n. raj |
B. | v.k.r.v. rao |
C. | dadabai naoroji |
D. | p.c. mahalanobis |
Answer» C. dadabai naoroji |
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