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Q.1
The shape of PPC is concave due to
Falling opportunity cost between two goods
Rising opportunity cost between two goods
Constant opportunity cost between two goods
None of the above
Q.2
Which of the following is not the name of LAC curve?
Planning curve
Enveloping curve
Round curve
None of the above
Q.3
Which of the following is a cause of an economic problem?
Scarcity of resources
Alternative uses
Unlimited wants
All of the above
Q.4
Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.
-0.5
0.5
-2
2
Q.5
Positive income elasticity implies that as income rises, demand for the commodity
Rises
Falls
Remains unchanged
Becomes Zero
Q.6
A firm under perfect competition will be making minimum losses (in the short run) at a point where
MC>MR
MR>MC
MC=MR
AC=AR
Q.7
Which of the following is not a feature of perfect competition?
Large number of buyers and sellers
Small number of buyers and sellers
Free entry and exit
Goods is homogeneous
Q.8
When two goods are perfect substitutes of each other, then
MRS is falling
MRS is rising
MRS is constant
None of the above
Q.9
In the long run, normal profits are included in the _____ curve
LAC
LMC
AFC
SAC
Q.10
_____ is an implicit cost of production
Wages of the labour
Charges for electricity
Interest on owned money capital
Payment for raw material
Q.11
According to Joseph Schumpeter, profit is the reward for
Innovation
Uncertainty-bearing
Risk-taking
Management
Q.12
Demand for final consumption arises in
Household sector only
Government sector only
Both household and government sector
Neither household nor government sector
Q.13
If quantity demanded is completely unresponsive to changes in price, demand is
Inelastic
Unit elastic
Elastic
Perfectly inelastic
Q.14
A mixed economy is characterized by the co-existence of
Modern and traditional industries
Public and private sectors
Foreign and domestic investments
Commercial and subsistence farming
Q.15
Which of the following is NOT a feature of iso-product curve? Iso-product curves
Are downward sloping to the right
Show different input combination producing the same output
Intersect each other
Are convex to the origin
Q.16
This is an assumption of law of demand
Price of the commodity should not change
Quantity should not change
Supply should not change
Income of consumer should not change
Q.17
If elasticity of demand is very low, it shows that the commodity is
A necessity
A luxury
Has little importance in total budget
a' and 'c' above
Q.18
An increase in the supply of a commodity is caused by
Improvements in technology
Fall in the prices of other commodities
Fall in the prices of factors of production
All of the above
Q.19
Which of the following is Microeconomics concerned with?
The size of national output
The level of employment
Changes in general level of prices
None of the above
Q.20
Which of the following is also known as plant curves?
Long-run average cost (LAC) curves
Short-run average cost (SAC) curves
Average variable cost (AVC) curves
Average total cost (ATC) curves
Q.21
Other things equal, if a good has more substitutes, its price elasticity of demand is
Larger
Smaller
Zero
Unity
Q.22
An economic theory is
An axiom
A proposition
A hypothesis
A tested hypothesis
Q.23
What is the shape of the average fixed cost (AFC) curve?
U-shape
Horizontal up to a point and then rising
Sloping down towards the right
Rectangular hyperbola
Q.24
A decrease in demand causes the equilibrium price to
Rise
Fall
Remain constant
Indeterminate
Q.25
Who is the 'lender of the last resort' in the banking structure of India?
State bank of India
Reserve bank of India
EXIM bank of India
Union bank of India
Q.26
____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks
Repo rate
Bank rate
Prime lending rate
Reverse repo rate
Q.27
Microeconomics deals with the
Allocation of resources of the economy as between production of different goods and services
Determination of prices of goods and services
Behavior of industrial decision makers
All of the above
Q.28
Some economists refer to iso-product curves as
Engels curve
Production indifference curve
Budget line
Ridge line
Q.29
When price is below equilibrium level, there will be
Surplus commodity in the market
Shortage of commodity in the market
Supply curve will shift
Demand curve will shift
Q.30
The following are causes of shift in demand EXCEPT
Change in income
Change in price
Change in fashion
Change in prices of substitutes
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