McqMate
1. |
The subject matter of economics is distributed into __________ parts. |
A. | two |
B. | three |
C. | four |
D. | five |
Answer» C. four |
2. |
The concept of ‘Consumer Surplus’ was introduced in Economics by |
A. | Prof. Robbins |
B. | Prof. Samuelson |
C. | Prof. Smith |
D. | Prof. Marshall |
Answer» D. Prof. Marshall |
3. |
In the case of rare coins, supply curve will be |
A. | Horizontal |
B. | Vertical |
C. | backward bending |
D. | positively sloped |
Answer» B. Vertical |
4. |
When the price elasticity of demand is equal to one, the demand curve is |
A. | rectangular hyperbola |
B. | parallel to the horizontal axis. |
C. | parallel to the vertical axis |
D. | negatively sloped straight line |
Answer» A. rectangular hyperbola |
5. |
Which one of the following is not a factor of production? |
A. | Land |
B. | Labour |
C. | Capital |
D. | Bank Loan |
Answer» D. Bank Loan |
6. |
The ‘Law of Variable Proportion’ was first developed by |
A. | Prof. Mill |
B. | Prof. Marshall |
C. | Prof. Ricardo |
D. | Prof. Smith |
Answer» B. Prof. Marshall |
7. |
Which one of the following cost can never become zero? |
A. | Average cost |
B. | Fixed cost |
C. | Marginal cost |
D. | Variable cost |
Answer» B. Fixed cost |
8. |
All the factors of production become variable in the |
A. | Short run |
B. | long run |
C. | very short run 2 |
D. | very long run |
Answer» B. long run |
9. |
Marginal cost is defined as |
A. | the change in total cost due to one unit change in output. |
B. | the change in total cost due to one unit change in input. |
C. | the ratio of total cost to total output |
D. | the ratio of total cost to total input |
Answer» A. the change in total cost due to one unit change in output. |
10. |
If a firm produces 200 units of commodity X by employing 10 workers and 240 units of the same commodity by employing 12 workers, then the Average Product of the worker is |
A. | 20 |
B. | 40 |
C. | 200 |
D. | 240 |
Answer» A. 20 |
11. |
Which one of the following is a feature of a perfect competition? |
A. | Selling Cost |
B. | Group Behaviour |
C. | Homogenous Product |
D. | Differentiated Product |
Answer» C. Homogenous Product |
12. |
In the case of a perfectly competitive firm, the demand curve for product is |
A. | Elastic |
B. | unit elastic |
C. | perfectly elastic |
D. | perfectly inelastic |
Answer» C. perfectly elastic |
13. |
Cartel is one form of |
A. | Monopoly |
B. | Duopoly |
C. | collusive oligopoly |
D. | non-collusive oligopoly |
Answer» C. collusive oligopoly |
14. |
Dynamic Pricing is mostly followed by |
A. | Automobile Manufacturing Companies |
B. | Cooking Gas Supplying Companies |
C. | On-line Companies |
D. | Brand Name Food Companies |
Answer» C. On-line Companies |
15. |
PT = MV is the equation suggested by |
A. | J.M. Keynes |
B. | A.W. Phillips |
C. | Irving Fisher |
D. | A.C.Pigou |
Answer» C. Irving Fisher |
16. |
All the following functions are associated with commercial bank except that |
A. | Commercial Bank cannot issue Paper Notes |
B. | Commercial Bank acts as a Banker to the Government |
C. | Commercial Banks are mostly privately – owned and privately – managed |
D. | to accept Deposit from the Public is the most important function of a commercial bank |
Answer» A. Commercial Bank cannot issue Paper Notes |
17. |
Gresham’s Law is true where |
A. | only Barter System operates |
B. | only Paper Currency operates |
C. | only Metal Currency operates |
D. | Both Paper and Metal Currencies operates |
Answer» D. Both Paper and Metal Currencies operates |
18. |
Quantity Theory of Money states that 3 |
A. | Price Level is directly proportional to Money Supply |
B. | Price Level is inversely proportional to Money Supply |
C. | Price Level is not related to Money Supply |
D. | Price Level is inversely related to Money Demand |
Answer» A. Price Level is directly proportional to Money Supply |
19. |
The Growth definition of Economics was introduced by |
A. | J.M.Keynes and P.A. Samuelson |
B. | Adam Smith |
C. | Alfred Marshall |
D. | Lionel Robbins |
Answer» A. J.M.Keynes and P.A. Samuelson |
20. |
According to the ‘Law of Demand, demand varies ________ with price. |
A. | Directly |
B. | Indirectly |
C. | Proportionately |
D. | Inversely |
Answer» D. Inversely |
21. |
When excess demand occurs in an unregulated market, there is a tendency for: |
A. | price to rise |
B. | quantity supplied to decrease |
C. | quantity demanded to increase |
D. | price to fall |
Answer» A. price to rise |
22. |
In the case of inferior goods, the consumer |
A. | purchases less with increase in income |
B. | purchases less with decrease in price |
C. | purchases more with increase in income |
D. | purchases more with decrease in price |
Answer» A. purchases less with increase in income |
23. |
Let a firm employs 10 labourers to produce 150 units of output. If 11 labourers are employed to produce 166 units of output, then the marginal product is |
A. | 11 |
B. | 16 |
C. | 150 |
D. | 166 |
Answer» B. 16 |
24. |
A rational producer produces in that region where |
A. | marginal physical product of the fixed input becomes negative |
B. | marginal physical product of the variable input becomes negative |
C. | marginal physical product of the fixed input becomes increasing |
D. | marginal physical product of the variable input becomes declining |
Answer» D. marginal physical product of the variable input becomes declining |
25. |
In a firm doubles all inputs, and output doubles as well, the firm is subject to |
A. | constant returns to scale |
B. | increasing returns to scale |
C. | decreasing returns to scale |
D. | economies of scale |
Answer» A. constant returns to scale |
26. |
As output increases, AFC of a firm |
A. | Increases |
B. | remains constant |
C. | continuously declines |
D. | initially increases, afterwards declines |
Answer» C. continuously declines |
27. |
Which of the first order condition for the profit of a firm be maximum? |
A. | AC = MR |
B. | MC = MR |
C. | MR = AR |
D. | AC = AR |
Answer» B. MC = MR |
28. |
Opportunity cost is measured in terms of the |
A. | optional cost that has been avoided |
B. | negative cost that has been sacrificed |
C. | accounting cost that has been paid |
D. | next best alternative that has been foregone |
Answer» D. next best alternative that has been foregone |
29. |
Due to the operation of ‘Laws of return to Scale’ LAC curve is |
A. | Rectangular hyperbola |
B. | U-Shaped |
C. | Parallel to the horizontal axis |
D. | Parallel to the vertical axis |
Answer» B. U-Shaped |
30. |
The AR curve and industry demand curve are identical |
A. | in case of monopoly |
B. | in case of oligopoly |
C. | in case of monopolistic competition |
D. | in case of perfect competition |
Answer» D. in case of perfect competition | |
Explanation: In a perfectly competitive market, firms are price takers and have no control over the market price. As a result, their individual demand curve is also the market demand curve, and their marginal revenue curve is also the market average revenue curve, also known as the industry demand curve. |
31. |
OPEC is an example of |
A. | Perfect competition |
B. | Monopolistic competition |
C. | Monopoly |
D. | Cartel |
Answer» D. Cartel |
32. |
The relationship between money supply and price level is |
A. | Inverse |
B. | Neutral |
C. | Proportional |
D. | non-proportional |
Answer» C. Proportional |
33. |
Cash Balance Approach was given by |
A. | I. Fisher |
B. | J. M. Keynes |
C. | G. Crowther |
D. | Cambridge University Professors |
Answer» D. Cambridge University Professors |
34. |
Which one of the following functions of commercial banks include collection of cheques, drafts, bill of exchange etc. of their customers from other banks? |
A. | Agency Function |
B. | Creation of Credit |
C. | Payment of Loans and Advances |
D. | General Utility Function |
Answer» A. Agency Function |
35. |
Which one of the following is the apex bank for agricultural credit in India? |
A. | RBI |
B. | IDBI |
C. | SIDBI |
D. | NABARD |
Answer» D. NABARD |
36. |
Which of these would lead to fall in demand for money? |
A. | Inflation |
B. | Increase in Real Income |
C. | Increase in Real Rate of Interest |
D. | None of the above |
Answer» C. Increase in Real Rate of Interest |
37. |
The rate at which the commercial banks borrow from the Reserve Bank of India is called as |
A. | REPO |
B. | PLR |
C. | BPLR |
D. | Bank rate |
Answer» D. Bank rate |
38. |
Commercial banks provide collateral loans against |
A. | Government Security |
B. | Shares |
C. | Bills of Exchange |
D. | Commercial Paper |
Answer» A. Government Security |
39. |
________ defined economics as a science which deals with wealth. |
A. | J.B. Say |
B. | A.C.Pigou |
C. | Alfred Marshall |
D. | Lionel Robbins |
Answer» A. J.B. Say |
40. |
_________ goods are known as scarce goods. |
A. | Economic |
B. | Durable |
C. | Free |
D. | Consumer |
Answer» A. Economic |
41. |
_________ is the first Law of Consumption. |
A. | The Law of Diminishing Marginal Utility |
B. | The Law of Demand |
C. | The Law of Increasing Returns |
D. | All of the above |
Answer» A. The Law of Diminishing Marginal Utility |
42. |
Factors of production may be of _______ types. |
A. | 4 |
B. | 3 |
C. | 2 |
D. | 5 |
Answer» A. 4 |
43. |
The Law of Variable Proportions relates to _________ only. |
A. | long – run |
B. | short – run |
C. | very long run |
D. | very short run |
Answer» B. short – run |
44. |
The total ___________ curve will be a horizontal line. |
A. | Variable cost |
B. | Fixed cost |
C. | Marginal cost |
D. | Cost |
Answer» B. Fixed cost |
45. |
The supply curve always slopes ___________ |
A. | Upwards |
B. | Downwards |
C. | both (A) and (B) |
D. | neither (A) nor (B) |
Answer» A. Upwards |
46. |
__________ is the centre of all marketing policies. |
A. | Price |
B. | Product |
C. | Profit |
D. | Publicity |
Answer» B. Product |
47. |
In the long run, a firm in perfect competition earns _____________ |
A. | normal profit only |
B. | abnormal profit |
C. | average profit of past 5 years |
D. | 12.33 per cent profit on capital employed |
Answer» A. normal profit only |
48. |
Oligopoly means _________ |
A. | Single seller |
B. | few sellers |
C. | large number of sellers |
D. | no buyers |
Answer» B. few sellers |
49. |
Penetration Pricing is adopted by following a ___________ |
A. | low price |
B. | high price |
C. | dual price |
D. | support price |
Answer» A. low price |
50. |
When the price of a complementary product falls, the demand for the other product will ___ |
A. | Fall |
B. | Increase |
C. | remain stable |
D. | drop by 25 per cent |
Answer» B. Increase |
51. |
The primary functions of money are of ______ types. |
A. | 2 |
B. | 3 |
C. | 4 |
D. | 5 |
Answer» A. 2 |
52. |
The money supply affects the rate of interest; when the money supply increases, rate of interest will be decreased. It is explained by _____________ |
A. | Keynes |
B. | Walker |
C. | Robbins |
D. | Crowther |
Answer» A. Keynes |
53. |
SDRs are used in place of _________ |
A. | commercial papers |
B. | gold |
C. | shares |
D. | company deposits |
Answer» B. gold |
54. |
__________ is one among the qualitative credit control instruments used by the RBI. |
A. | Bank Rate Policy |
B. | Moral Suasion |
C. | Open Market Operations |
D. | Cash Reserve Ratio |
Answer» B. Moral Suasion |
55. |
Money market is controlled by the ___________ |
A. | RBI |
B. | Government |
C. | IDBI |
D. | IMF |
Answer» A. RBI |
56. |
On the basis of functions, financial markets are classified into _________ types. |
A. | 5 |
B. | 4 |
C. | 3 |
D. | 2 |
Answer» D. 2 |
57. |
The ‘Welfare definition’ of Economics was introduced by ______________ |
A. | Adam Smith |
B. | Alfred Marshall |
C. | Lionel Robbins |
D. | J. R. Hicks |
Answer» B. Alfred Marshall |
58. |
Micro-economics deals with the ___________ |
A. | economic behavior of the individual |
B. | economy as a whole |
C. | trade relations |
D. | economic growth of the society |
Answer» A. economic behavior of the individual |
59. |
Point Elasticity was propounded by ________________ |
A. | Alfred Marshall |
B. | Adam Smith |
C. | Lionel Robbins |
D. | Jacob Viner |
Answer» A. Alfred Marshall |
60. |
Production creates __________ utility. |
A. | Place |
B. | Time |
C. | Form |
D. | possession |
Answer» C. Form |
61. |
A Production Function refers to ________________ |
A. | Scale of production |
B. | relationship between resources |
C. | relationship between inputs and output |
D. | relationship between costs and output |
Answer» C. relationship between inputs and output |
62. |
__________ cost remains constant even if production is stopped. |
A. | Fixed |
B. | Variable |
C. | Semi-Variable |
D. | Marginal |
Answer» A. Fixed |
63. |
________ refers to the quantity of a commodity which a firm is willing to produce and offer for sale. |
A. | Individual Supply |
B. | Market Supply |
C. | Individual Demand |
D. | Market Demand |
Answer» A. Individual Supply |
64. |
On the basis of area, markets are classified into _________ types. |
A. | 2 |
B. | 3 |
C. | 4 |
D. | 5 |
Answer» B. 3 |
65. |
Total input is maximum when _____________ |
A. | MP = 0 |
B. | MP is increasing |
C. | MP is decreasing |
D. | MP is constant |
Answer» A. MP = 0 |
66. |
Which of the following does not characterize monopolistic competition? |
A. | product differentiation |
B. | many producers |
C. | absence of advertising 8 |
D. | partial control over price |
Answer» C. absence of advertising 8 |
67. |
Pricing for selling the same commodity at different selling prices is known as ______ |
A. | Skimming Pricing |
B. | Differential Pricing |
C. | Penetration Pricing |
D. | Cost – Plus Pricing |
Answer» B. Differential Pricing |
68. |
In a perfect competition, a firm earns super normal profit when the AR of the firm _____ the ACT of the firm. |
A. | equals to |
B. | exceeds |
C. | is lower than |
D. | neither exceeds nor is lower than |
Answer» B. exceeds |
69. |
________ refers to the market situations whether there is one seller and there is not close substitute to the commodity sold by the seller. |
A. | Perfect Competition |
B. | Monopoly |
C. | Oligopoly |
D. | Monopolistic Competition |
Answer» B. Monopoly |
70. |
Cash Money is created by the _________________ |
A. | Central Bank of a country |
B. | Commercial Banks |
C. | State Bank of India |
D. | Co-operative Banks |
Answer» A. Central Bank of a country |
71. |
“Money is what money does”. This definition was given by __________ |
A. | Adam Smith |
B. | Walker |
C. | Robbins |
D. | Robertson |
Answer» B. Walker |
72. |
Traditional function of a commercial bank is ______________ |
A. | issue of gift cheque |
B. | credit creation |
C. | providing locker facilities |
D. | acceptance of deposits |
Answer» D. acceptance of deposits |
73. |
________ is one among the quantitative methods of credit control. |
A. | Bank Rate Policy |
B. | Moral Suasion |
C. | Direct Action |
D. | Rationing of Credit |
Answer» A. Bank Rate Policy |
74. |
Securities market in India is regulated by the ___________ |
A. | Government |
B. | RBI |
C. | SEBI |
D. | SBI |
Answer» C. SEBI |
75. |
___________ market is the nerve centre of the financial system. |
A. | Money |
B. | Capital |
C. | Local |
D. | National |
Answer» A. Money |
76. |
_____________ is the father of Economics. 9 |
A. | Adam Smith |
B. | Alfred Marshall |
C. | Lionel Robbins |
D. | J.R. Hicks |
Answer» A. Adam Smith |
77. |
___________ is an act to use the goods or service to satisfy the wants. |
A. | Production |
B. | Consumption |
C. | Savings |
D. | Distribution |
Answer» B. Consumption |
78. |
The Law of Diminishing Marginal Utility was developed by ____________ |
A. | Stanley Jevons |
B. | Alfred Marshall |
C. | Adam Smith |
D. | J.R. Hicks |
Answer» B. Alfred Marshall |
79. |
_________ demand is also known as Direct Demand. |
A. | Derived |
B. | Autonomous |
C. | Individual |
D. | Consumption |
Answer» B. Autonomous |
80. |
Total Outlay Method of measuring Elasticity of Demand was introduced by _________ |
A. | Stanley Jevons |
B. | Alfred Marshall |
C. | Adam Smith |
D. | J.R. Hicks |
Answer» B. Alfred Marshall |
81. |
When two or more different goods are produced together by a single firm, it is called as _________ supply. |
A. | joint |
B. | composite |
C. | excess |
D. | short |
Answer» A. joint |
82. |
___________ is a gift of nature. |
A. | Land |
B. | Labour |
C. | Capital |
D. | Organisation |
Answer» A. Land |
83. |
There are _______ stages of the Law of Variable Proportions |
A. | 2 |
B. | 3 |
C. | 4 |
D. | 5 |
Answer» B. 3 |
84. |
Which factor of production is considered as a produced means of production? |
A. | Land |
B. | Labour |
C. | Capital |
D. | Organisation |
Answer» C. Capital |
85. |
________ means transformation of physical inputs into output. |
A. | Marketing |
B. | Production |
C. | Finance |
D. | Money |
Answer» B. Production |
86. |
__________ cost is also known as Alternative Cost. |
A. | Opportunity |
B. | Actual |
C. | Real |
D. | Money |
Answer» A. Opportunity |
87. |
The additional cost incurred to produce an additional unit of output is _______ |
A. | Marginal cost |
B. | Variable cost |
C. | Fixed cost |
D. | Opportunity cost |
Answer» A. Marginal cost |
88. |
On the basis of time element, markets can be classified into __________ types. |
A. | 2 |
B. | 3 |
C. | 4 |
D. | 5 |
Answer» B. 3 |
89. |
________ competition exists when the basic features of Perfect Competition are not present. |
A. | Pure |
B. | Perfect |
C. | Imperfect |
D. | All of the above |
Answer» C. Imperfect |
90. |
The ____ states that bad money drives good money out of circulation. |
A. | Law of Demand |
B. | Law of Supply |
C. | Gresham’s Law |
D. | Demand Schedule |
Answer» C. Gresham’s Law |
91. |
Quantity Theory of Money was explained by ___________ |
A. | Fisher |
B. | Keynes |
C. | Crowther |
D. | Samuelson |
Answer» A. Fisher |
92. |
__________ account can be opened by business persons only. |
A. | Current Deposit |
B. | Savings Deposit |
C. | Fixed Deposit |
D. | Recurring Deposit |
Answer» A. Current Deposit |
93. |
In India, Central Bank was established in _________ |
A. | 1945 |
B. | 1955 |
C. | 1935 |
D. | 1965 |
Answer» C. 1935 |
94. |
Wealth was defined by |
A. | Alfred Marshall |
B. | Adam Smith |
C. | Robbins |
D. | Jacob |
Answer» B. Adam Smith |
95. |
Income minus Savings is equal to ___________ |
A. | Consumption |
B. | Production |
C. | Investment 11 |
D. | Demand |
Answer» A. Consumption |
96. |
______ means the desire backed by the necessary purchasing power. |
A. | Consumption |
B. | Production |
C. | Investment |
D. | Demand |
Answer» D. Demand |
97. |
If the proportionate change in the supply is equal to the proportionate change in price, it is said to be _______ supply. |
A. | Unitary Elastic |
B. | Perfectly Inelastic |
C. | Perfectly Elastic |
D. | Relatively Inelastic |
Answer» A. Unitary Elastic |
98. |
Production creates _________ utility. |
A. | Place |
B. | Time |
C. | Form |
D. | Possession |
Answer» C. Form |
99. |
Law of Variable Proportions was developed by _____________ |
A. | Alfred Marshall |
B. | Adam Smith |
C. | Robbins |
D. | Jacob |
Answer» A. Alfred Marshall |
100. |
The average _________ and output have inverse functional relationship. |
A. | fixed cost |
B. | variable cost |
C. | marginal cost |
D. | total cost |
Answer» A. fixed cost |
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