McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Bachelor of Arts in Sociology (BA Sociology) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .
| 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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