McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Politics (BA Politics) .
| 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. |
Which one of the following is an example of an economic good |
| A. | Sunlight |
| B. | Air |
| C. | Petrol |
| D. | None of the above |
| Answer» C. Petrol | |
| 5. |
----- is not an example of free good |
| A. | Sunlight |
| B. | Car |
| C. | Petrol |
| D. | Computer |
| Answer» A. Sunlight | |
| 6. |
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 | |
| 7. |
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 | |
| 8. |
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 | |
| 9. |
Production is said to be efficient when: |
| A. | The re-allocation of resources cannot increase the production of the article even by one unit |
| B. | More output is produced with the given input |
| C. | Resources are fully employed |
| D. | All of the above |
| Answer» A. The re-allocation of resources cannot increase the production of the article even by one unit | |
| 10. |
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 | |
| 11. |
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 | |
| 12. |
Partial equilibrium analysis come under: |
| A. | Micro economics |
| B. | Macro economics |
| C. | Welfare economics |
| D. | International economics |
| Answer» A. Micro economics | |
| 13. |
“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 | |
| 14. |
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 | |
| 15. |
Economics is a social science because |
| A. | The central point in economics is man and his problems |
| B. | Economics uses scientific approach to derive its laws |
| C. | Like History, Politics and Psychology economics deals with the problems of human being |
| D. | All of the above |
| Answer» D. All of the above | |
| 16. |
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 | |
| 17. |
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 | |
| 18. |
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 | |
| 19. |
Transformation of inputs into outputs is known as |
| A. | Production |
| B. | Consumption |
| C. | Distribution |
| D. | Exchange |
| Answer» A. Production | |
| 20. |
----- is an example of secondary input |
| A. | Land |
| B. | Labour |
| C. | Capital |
| D. | Raw material |
| Answer» D. Raw material | |
| 21. |
Odd-man out from the following |
| A. | Steel |
| B. | Medicine |
| C. | Education |
| D. | Train |
| Answer» C. Education | |
| 22. |
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 | |
| 23. |
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 | |
| 24. |
Firms owned by one individual is known as |
| A. | Proprietorship |
| B. | Partnership |
| C. | Corporations |
| D. | None of the above |
| Answer» A. Proprietorship | |
| 25. |
Firms owned by two or more individuals is known as |
| A. | Proprietorship |
| B. | Partnership |
| C. | Corporations |
| D. | None of the above |
| Answer» B. Partnership | |
| 26. |
Firms owned by stock holders are known as |
| A. | Proprietorship |
| B. | Partnership |
| C. | Corporations |
| D. | None of the above |
| Answer» C. Corporations | |
| 27. |
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 | |
| 28. |
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 | |
| 29. |
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 | |
| 30. |
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 | |
| 31. |
Marginal product of a factor is |
| A. | The additional product received by the firm due to the employment of an additional unit of a variable factor |
| B. | Addition to the total product when one more unit of a factor is employed |
| C. | The rate of change in the total product per unit change in the variable factor. |
| D. | All of the above |
| Answer» D. All of the above | |
| 32. |
Production function expresses |
| A. | The relationship between input and output |
| B. | How maximum output is produced with the given input |
| C. | What is the least-cost combination of input to produce the given output |
| D. | All of the above |
| Answer» D. All of the above | |
| 33. |
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 | |
| 34. |
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 | |
| 35. |
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 | |
| 36. |
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 | |
| 37. |
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 | |
| 38. |
At the ‘point of inflection’ |
| A. | MP is maximum |
| B. | AP is maximum |
| C. | TP is maximum |
| D. | All of the above |
| Answer» A. MP is maximum | |
| 39. |
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 | |
| 40. |
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 | |
| 41. |
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 | |
| 42. |
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 | |
| 43. |
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 | |
| 44. |
Economies of scale refers to: |
| A. | Advantages resulting from large scale production |
| B. | Disadvantages resulting from large scale production |
| C. | Advantages resulting from the increase in the number of consumers |
| D. | All of the above |
| Answer» A. Advantages resulting from large scale production | |
| 45. |
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 | |
| 46. |
The law of Diminishing returns is applicable to: |
| A. | Agriculture only |
| B. | Industry only |
| C. | In short-run only |
| D. | Universally |
| Answer» D. Universally | |
| 47. |
Let a firm employs 5 labourers and produces 120 units of output. When 6 labourers are employed the firm produces 136 units of output. Then the marginal product is --- |
| A. | 120 |
| B. | 136 |
| C. | 6 |
| D. | 16 |
| Answer» D. 16 | |
| 48. |
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. | 200 |
| B. | 240 |
| C. | 20 |
| D. | 40 |
| Answer» C. 20 | |
| 49. |
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 | |
| 50. |
When total utility is maximum, marginal utility is: |
| A. | Maximum |
| B. | One |
| C. | Zero |
| D. | Infinite |
| Answer» C. Zero | |
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