McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 1. |
Micro economics theory deals with |
| A. | Economic behavior of individual economic decision making units |
| B. | Economy as a whole |
| C. | Trade relations |
| D. | Economic growth of the society |
| Answer» A. Economic behavior of individual economic decision making units | |
| 2. |
Which of the following is a central problem of every economy |
| A. | Abundance of resources |
| B. | Scarcity of economic resources |
| C. | Poverty |
| D. | Moral and ethical values |
| Answer» B. Scarcity of economic resources | |
| 3. |
Equilibrium relates to which of these |
| A. | Market condition which oscillate |
| B. | Market state of falling price |
| C. | Market condition of rising price |
| D. | Market conditions which once achieved tends to persist |
| Answer» D. Market conditions which once achieved tends to persist | |
| 4. |
General equilibrium analysis refers to |
| A. | Behaviour of individual economic decision making units and individual markets in isolation |
| B. | Behaviour of all the individual decision making units and market viewed in totality |
| C. | Both ; |
| D. | none |
| Answer» B. Behaviour of all the individual decision making units and market viewed in totality | |
| 5. |
Normative economic theory deals with |
| A. | What is or how the economic problem facing the society are solved |
| B. | How the problem should be solved |
| C. | What to Produce |
| D. | How to produce |
| Answer» B. How the problem should be solved | |
| 6. |
In a mixed economy which sector(s) is/ are found |
| A. | Private Only |
| B. | Public sector only |
| C. | None |
| D. | Both a and b |
| Answer» D. Both a and b | |
| 7. |
In economic theory the term “means” refers to |
| A. | Resources |
| B. | Arithmetic mean |
| C. | A characteristic |
| D. | None |
| Answer» A. Resources | |
| 8. |
Market equilibrium of a commodity is determined by |
| A. | Balancing of demand and supply position |
| B. | Aggregate demand |
| C. | Aggregate supply |
| D. | Government intervention |
| Answer» A. Balancing of demand and supply position | |
| 9. |
Cetris Paribus means |
| A. | Holding demand constant |
| B. | Holding supply constant |
| C. | Price being constant |
| D. | Other things being constant |
| Answer» D. Other things being constant | |
| 10. |
Economic resources are |
| A. | Unlimited |
| B. | Limited in supply and use |
| C. | Limited in supply but have alternative uses |
| D. | Unproductive |
| Answer» C. Limited in supply but have alternative uses | |
| 11. |
Which of the following is/ are not an economic resource |
| A. | Land |
| B. | Capital |
| C. | Labour |
| D. | Air |
| Answer» D. Air | |
| 12. |
Which of the following is/ are an economic resource |
| A. | Land |
| B. | Capital |
| C. | Labour |
| D. | All the three |
| Answer» D. All the three | |
| 13. |
Which of the following is/ are a non-economic resource |
| A. | Air |
| B. | Water |
| C. | Sunlight |
| D. | All the three |
| Answer» D. All the three | |
| 14. |
Which of these resources would be called as land in economics |
| A. | Coal mines of Bihar |
| B. | Water resources of Uttaranchal |
| C. | Mineral deposits of Jharkhand |
| D. | All the three |
| Answer» D. All the three | |
| 15. |
Which of these is not land in economics |
| A. | Tehri Dam |
| B. | Forest reserves of Assam |
| C. | Fish reserves in the Bay of Bengal |
| D. | Herbal plant of Uttaranchal |
| Answer» A. Tehri Dam | |
| 16. |
Which of these would be classified as capital in economics |
| A. | Bhankra Dam |
| B. | Indira canal |
| C. | Golden triangle |
| D. | All the three |
| Answer» D. All the three | |
| 17. |
Capital in economics means |
| A. | Factor of production |
| B. | Fund brought in by the entrepreneur |
| C. | Investment in shares, bank deposits |
| D. | All the above |
| Answer» A. Factor of production | |
| 18. |
Scarcity of resources leads to |
| A. | Unsatisfaction of human wants |
| B. | Evaluation of alternative uses of scarce resources |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 19. |
Who defined economics as “ Science which deals with wealth” |
| A. | J. (B) Say |
| B. | (A) (C) pigou |
| C. | Alfred Marshall |
| D. | Robbins |
| Answer» A. J. (B) Say | |
| 20. |
Economics cannot be considered a perfect science because |
| A. | Human behaviour is unpredictable |
| B. | It is difficult to make correct prediction of economic variables |
| C. | Economist do not have common opinion about a particular economic event |
| D. | All the three |
| Answer» D. All the three | |
| 21. |
In economic goods includes material things which………. |
| A. | Can be transferred |
| B. | Can be exchanged for one another |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 22. |
In economic wealth is the stock of all those material and immaterial objects which……... |
| A. | Are transferable |
| B. | Have utility |
| C. | Are scarce |
| D. | All the three |
| Answer» D. All the three | |
| 23. |
In addition to three Central problem of economy, the additional problem(s) raised by the Modern economists is / are |
| A. | Are the resources fully utilized or not |
| B. | How efficient is the production and distribution system |
| C. | Whether the capacity to produce or grow is increasing or is static |
| D. | All the three |
| Answer» D. All the three | |
| 24. |
The basic assumption of an economic analysis is/ are |
| A. | Cetris paribus |
| B. | Rational behavior |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 25. |
The terms Micro economic and Macro economics were coined by |
| A. | Professor A Samulson |
| B. | Giffen |
| C. | Prof. Ragner Frisch |
| D. | Eagle |
| Answer» C. Prof. Ragner Frisch | |
| 26. |
----------is known as father of economics |
| A. | Adam Smith |
| B. | Professor A Samulson |
| C. | Alfred Marshall |
| D. | J R Hicks |
| Answer» A. Adam Smith | |
| 27. |
Which of these are outside the domain of macro economics |
| A. | Consumer behavior |
| B. | National income |
| C. | Economic growth |
| D. | Balance of payment and trade |
| Answer» A. Consumer behavior | |
| 28. |
Scarcity of resources means |
| A. | Limited resources |
| B. | Non – esxistence of resources |
| C. | Both |
| D. | None |
| Answer» A. Limited resources | |
| 29. |
Human wants are |
| A. | Unsatisfiable |
| B. | Unlimited |
| C. | Undefined |
| D. | Limited |
| Answer» B. Unlimited | |
| 30. |
Economics cannot be given the status of science because |
| A. | Of non-uniformity of opinion and approach of economist |
| B. | Economic behaviour of human being is unpredictable |
| C. | Measuring rod of money is unstable |
| D. | All the three |
| Answer» D. All the three | |
| 31. |
Which of the following is not a central problem of a society |
| A. | What to produce |
| B. | How to produce |
| C. | For whom to produce |
| D. | Where to produce |
| Answer» D. Where to produce | |
| 32. |
The paradox of Diamond is more costly than water is explained by |
| A. | Marginal utility concept |
| B. | Scarcity |
| C. | Relative cost of production |
| D. | All the three |
| Answer» B. Scarcity | |
| 33. |
Which of these is an economic activity |
| A. | A father teaching his son at home instead of sending to any coaching centre |
| B. | A hair dresser doing hair cut designing on payment |
| C. | A housewife mending her family cloths on her own |
| D. | A singer giving a show on his son’s wedding anniversary |
| Answer» B. A hair dresser doing hair cut designing on payment | |
| 34. |
The term “ Micro” is derived from the …….word which means…….. |
| A. | Latin, small |
| B. | Greek, small |
| C. | English, tiny |
| D. | Roman, small |
| Answer» B. Greek, small | |
| 35. |
Which of the following issue relates to micro-economics |
| A. | Impact of crude price hike on inflation |
| B. | Impact of change in bank rate on bank saving and investment |
| C. | Impact of Information technology on economic growth |
| D. | Impact of shortage of wheat production on wheat prices |
| Answer» D. Impact of shortage of wheat production on wheat prices | |
| 36. |
Economics modes are |
| A. | Based on some realistic assumptions |
| B. | Based on hypothetical assumptions |
| C. | Scientifically tested |
| D. | Based on necessity |
| Answer» A. Based on some realistic assumptions | |
| 37. |
The famous book “An enquiry into the nature and causes of wealth of Nation” was written by – |
| A. | Adam Smith |
| B. | Samulson |
| C. | Robertson |
| D. | JB Say |
| Answer» A. Adam Smith | |
| 38. |
The famous book “An enquiry into the nature and causes of wealth of Nation” was published in- |
| A. | 1776 |
| B. | 1750 |
| C. | 1850 |
| D. | 1886 |
| Answer» A. 1776 | |
| 39. |
The law of indifference is/are also know by- |
| A. | Law of substitution |
| B. | law of equimarginal utility |
| C. | Law of diminishing marginal utility |
| D. | All the three |
| Answer» D. All the three | |
| 40. |
Which of the following is not a central problem of a society |
| A. | What to produce |
| B. | How to produce |
| C. | For whom to produce |
| D. | What to eat |
| Answer» D. What to eat | |
| 41. |
The central problem of how to produce is resolved by |
| A. | Demand and supply of factor inputs |
| B. | Demand and supply of goods |
| C. | Relative prices and availability of factors of production |
| D. | Government intervention |
| Answer» C. Relative prices and availability of factors of production | |
| 42. |
In free economy the decision about investment, saving and consumption are decided by |
| A. | Price mechanism |
| B. | Central bank |
| C. | Planning Commission |
| D. | Finance budget |
| Answer» A. Price mechanism | |
| 43. |
Which of these statement is true about production possibility curve (PPC/PPF) |
| A. | It shows various combinations of two goods which yield same level of satisfaction |
| B. | It shows various combination of two goods which an economy can produce with a given amount of resources |
| C. | It shows various combination of two goods which an economy can produce with a given budget |
| D. | It shows various combination of two goods which an economy can produce with a given time |
| Answer» B. It shows various combination of two goods which an economy can produce with a given amount of resources | |
| 44. |
If production possibility frontier is linear it implies |
| A. | Constant opportunity cost |
| B. | Economy is stagnant |
| C. | Underemployment of factor of production |
| D. | With the increase in production, opportunity cost also increases |
| Answer» A. Constant opportunity cost | |
| 45. |
The opportunity cost of consumption is |
| A. | Lack of capital formation for future |
| B. | Greater investment |
| C. | Full employment |
| D. | Deflation |
| Answer» A. Lack of capital formation for future | |
| 46. |
The opportunity cost of capital investment is |
| A. | Sacrifice of current consumption |
| B. | More consumption on luxury items |
| C. | Lower capital growth in future |
| D. | Wastage of Resources |
| Answer» A. Sacrifice of current consumption | |
| 47. |
Any point beyond PPF is |
| A. | Attainable |
| B. | Unattainable |
| C. | Attainable with increase in production facilities |
| D. | None |
| Answer» C. Attainable with increase in production facilities | |
| 48. |
If an economy is working at a point left to PPF curve it shows that……… |
| A. | The economy is working at less than the full employment level |
| B. | The economy is at full employment level |
| C. | The economy is country is faced with excess production |
| D. | There is glut of imports |
| Answer» A. The economy is working at less than the full employment level | |
| 49. |
Curvature of PPF is due to……… |
| A. | Increase in opportunity cost |
| B. | Decrease in opportunity cost |
| C. | Fall in demand |
| D. | Fall in supply |
| Answer» A. Increase in opportunity cost | |
| 50. |
PPF is negative sloped due to |
| A. | Scarcity of production resources |
| B. | Unlimited wants |
| C. | Improvement in technology |
| D. | Increasing opportunity cost |
| Answer» A. Scarcity of production resources | |
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