Top 150+ Solved Basics of Economics MCQ Questions Answer
Q. If a worker specializes in the production of a single good, it is called:
a. product based division of labour
b. process based division of labour
c. worker based division of labour
d. none of these
Q. Goods produced for use in future productive process are called:
a. intermediate goods
b. final goods
c. consumer goods
d. capital goods
Q. In a horizontal straight line demand curve, the price elasticity ofdemand is:
a. unity
b. infinity
c. zero
d. less than one
Q. Who wrote the article Laws of Returns Under Competitive Conditions?
a. joan robinson
b. e.h. chamberlin
c. a. pigou
d. p. sraffa
Q. Increase in output less than proportional to increase in inputs iscalled:
a. increasing returns
b. constant returns
c. diminishing returns
d. marginal returns
Q. A simplified representation of a real situation is called:
a. theory
b. hypotheses
c. evidence
d. economic model
Q. When marginal product reaches its maximum, what can be said oftotal product?
a. total product must be at its maximum
b. total product starts to decline even if marginal product is positive
c. total product is increasing if marginal product is still positive
d. total product levels off
Q. When a firm doubles its inputs and finds that its output has morethan doubled, this is known as:
a. economies of scale.
b. constant returns to scale.
c. diseconomies of scale.
d. a violation of the law of diminishing returns.
Q. When average product is at a maximum, marginal product is:
a. zero
b. increasing
c. equal to average product
d. greater than average product
Q. The want satisfying power of a commodity:
a. satisfaction
b. utility
c. value
d. marginal utility
Q. Supply curve represents -------- relationship between quantity andprice.
a. direct
b. inverse
c. either direct or inverse
d. none of the above
Q. Laws of return shows ---------production function.
a. short-term
b. medium term
c. long term
d. annual
Q. In classical theory the level of employment is a function of:
a. price level
b. money wage rate
c. quantity of money
d. real wage rate
Q. Consumption of capital good in the process of production is called as:
a. capital consumption
b. depreciation
c. decay of capital
d. none of the above