McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .
| 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 | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.