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Economics MCQs
Economics MCQs
Question 1
1 / 1 pts
Identify the wrong one: Economic Sciences generally discusses issues mainly related to:
Scarce Resources
Money
Choices
Unlimited Demand
Question 2
1 / 1 pts
Meeting a given objective at least cost is
Technical Efficiency
All of the above
Allocative Efficiency
Efficiency
Question 3
1 / 1 pts
Which one of the following is wrong about market economics?
Competition among economic units determine Prices
State controls the resources
Economic players look at their self-interest
None of the above
Question 4
1 / 1 pts
Production Possibility Frontier shows increase in opportunity costs with rise in
production of one good.
True
False
Week 2 Quiz
When budget line is tangent to the indifference curve
When demand and supply curves intersect each other
When consumer shifts to a higher indifference curve because of decline
in price
None of the above
Question 3
1 / 1 pts
Marginal rate of substitution for complimentary goods is
Constant
Zero
Equals to 1
None of the above
Question 4
0 / 1 pts
Which one of the following statements is incorrect?
Utility can be measured in Ordinal numbers.
Indifference curves are convex to the origin.
The rate at which a consumer is ready to give up one good in exchange
for another decreases with rising consumption.
Higher indifference curve higher satisfaction.
None of the above.
Week 3 Quiz
Question 1
1 / 1 pts
The substitution effect involves the substitution of good X for good Y or
vice-versa due to a change in
Price of X
Price of Y
Relative income
Relative prices
Question 2
1 / 1 pts
The difference between Marshallian and Hicksian demand curve is that
the later considers utility to remain fixed.
False
True
Question 3
1 / 1 pts
In Slutsky method, substitution effect is more than the income effect for
Giffen goods
Normal goods
False
Week 4 Quiz
Question 1
Increases
Decreases
Does not change
Question 2
Market equilibrium is
The reason the supply curve slopes upward is due to costs and
True
False
Question 4
When demand of a commodity rises even if its price increase then that
kind of commodity is known as
Complementary goods
Substitute commodities
Giffen good
Week 5 quiz
Question 1
1 / 1 pts
Price elasticity (e) of demand for substitute goods is
e<0
e=0
e=0
e>0
Question 2
1 / 1 pts
When demand is elastic, a positive relationship exists between changes
in price and changes in total revenues
False
True
Question 3
1 / 1 pts
The longer any price change persists, the greater is the elasticity of
demand.
False
True
Question 4
0 / 1 pts
If income increases from Rs. 7500 to Rs. 10000 and because of that the
demand also rises from 10 to 12 units then this is an example of
Income inelasticity of demand
Income elasticity of demand
Price elasticity of demand
Income inelasticity of price
Week 6 quiz
Question 1
1 / 1 pts
When Marginal productivity reaches zero (find the wrong one)
Both A and B
Average product decreases
Total product is zero
Total product reaches maximum
Question 2
1 / 1 pts
Marginal Productivity of labor is the amount of output that rises due to
recruitment of one extra unit of labor.
False
True
Question 3
1 / 1 pts
In short run, only one input for productions can be changed.
True
False
Question 4
0 / 1 pts
Which of the following statement is correct? (All are correct)
Marginal productivity declines because of the fall in quality of input.
None of the above.
Law of diminishing marginal returns signifies decline in MP.
When the labor input is small, MP increases due to specialization
Week 7 Quiz
Question 1
1 / 1 pts
Isoquants for perfectly complementary factors of production are
Convex to the origin
Downward sloping straight lines
L-shaped
Concave to the origin
Question 2
1 / 1 pts
Which helps you to identify the equilibrium number of inputs
Iso-cost
Isoquant
Total product curve and Marginal product curve
Both isoquant and iso-cost
Question 3
1 / 1 pts
During increasing returns to scale, the distance between isoquants
increase
False
True
Question 4
1 / 1 pts
In case of Cobb-Douglas production function, for decreasing returns to
scale, (α+β) > 1
False
True
Week 8 Quiz
Question 1
1 / 1 pts
Example of marginal cost is
All of the above
Rise in operational costs in hospital for ten extra patient beds
Rise in cost for construction of one extra kilometer of road
Additional cost for driving one extra kilometer
Question 2
1 / 1 pts
In theory of cost an ‘envelope curve’ is
Long run total cost curve
Long run average cost curve
Long run marginal cost curve
Group of short run average cost curves
Question 3
1 / 1 pts
MC intersects ATC and AVC curves at their minimum points
True
False
Question 4
1 / 1 pts
Break-even point is when…
Loss is maximum
Total loss starts falling down
Profit is maximum
Total profit is zero
Week 9 Quiz
Question 1
1 / 1 pts
Firms in imperfect markets are price takers
True
False
Question 2
1 / 1 pts
When does a firm reach a shutdown point?
When MR = AR
If MR = MC
When the price is less than Marginal Cost
If the price falls below the point on the firm’s average variable cost
Question 3
1 / 1 pts
In a perfectly competitive market (which one is false)
A good or service is produced at the lowest possible average cost.
Sellers are earning a normal profit
A large firm may utilize the profit and move towards monopoly.
Losses will force firms to exit the market
Question 4
1 / 1 pts
Which one of the following is not a condition of a perfectly competitive market?
Barriers to new firms entering the market,
All firms selling identical products (for the same price),
Many buyers and sellers,
Free flow of information
Week10 Quiz
Question 1
1 / 1 pts
Which of the following is not a characteristics of a monopolistically
competitive market?
Low barrier on entry and exit of firms to the industry
Products are close substitutes
Large number of buyers and sellers
Firms are interdependent
Question 2
1 / 1 pts
Which of the following statements is/are correct?
(A) Oligopoly firms follow the principle of MR = MC.
(B) Demand will be more elastic in a pure oligopoly market.
Only B is correct
Both A and B are false
Both A and B are correct
Only A is correct
Question 3
1 / 1 pts
Fair Return Price is when
Question 4
1 / 1 pts
Which one of the following statement is false?
Cartel is formed in collusive oligopoly
Firms prefer non-price competition, because a firm will be skeptical to
raise price, as that may lead them to lose the market share
Week 11 Quiz
Question 1
1 / 1 pts
If no one can be excluded from consuming a product, but there is rivalry
in accessing the product, then the product type is known as
a) Public good
b) Natural monopoly
c) Common resources
d) Private good
Question 2
1 / 1 pts
An industry which does not treat its pollutants properly can cause
a) Positive production externality
Question 3
1 / 1 pts
The 'tragedy of the commons' is
d) a and b
e) All of the above
Question 4
1 / 1 pts
Coase theorem is generally not applicable when
a) Lesser number of stakeholders involved
b) Transaction cost is internally manageable
c) Property rights are well-defined
Week 12 Quiz
Question 1
Only A is correct
Question 2
Question 3
More money is injected in the economy when the economy is at its peak
At peak, even high market prices fail to cover high cost of production
for producers
Question 4
Which one of the following is correct?
Real GDP is the value of goods and services measured at current prices.
Week 13 Quiz
Question 1
1 / 1 pts
With more and more involvement of robotics, even if most people have
jobs but they are required to work for 5 hours a day and 5 days a week.
What is this kind of unemployment?
Underemployment
This is not an unemployment condition
Structural unemployment
Disguised unemployment
Question 2
1 / 1 pts
A. In case of supply chain disruption we observe a cost-push inflation
B. If unemployment rises inflation falls, and vice-versa
Both A and B are correct
Only A is correct
Only B is correct
Both A and B are incorrect
Question 3
0 / 1 pts
A. When Gini coefficient moves closer to zero it indicates towards
decrease inequality
B. Globalization is alleged to make rich people richer and poor people
poorer, in many countries. In these countries Lorenz Curve will move
towards the diagonal.
Both A and B are incorrect
Only B is correct
Question 4
1 / 1 pts
Which one of the following statements is incorrect?
In an economy, higher is the inequality, higher will be the relative
poverty.
Week 14 Quiz
Question 1
1 / 1 pts
The optimal capital stock is achieved when,
Question 2
1 / 1 pts
Which one of the following statements is incorrect?
Freedom to make choices is a measure of development
Question 3
1 / 1 pts
Dual sector economy model was propounded by
Harrod-Domar Model
Lewis Model
Solow-Swan Model
Keynesian Theory
Question 4
1 / 1 pts
Which consumption theory considers interest rate when estimating
income
Permanent income hypothesis
Week 15 Quiz
Question 1
Monetary policy
Fiscal Policy
Both
None
Question 2
The rate at which RBI lends to commercial banks for short period
against government securities is known as
Cash Reserve Ratio
Repo rate
Bank Rate
Question 3
Only A is correct
Only B is correct
Question 4
True
False
Week 16 Quiz
Only B is correct
Only A is correct
Question 2. 1 / 1 pts
Migrants' transfers
Debt forgiveness
Acquisition of land
Question 4. 1 / 1 pts
Only B is correct
Only A is correct