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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