Top 150+ Solved Basics of Economics Studies MCQ Questions Answer
Q. Transformation of inputs into outputs is known as
a. Production
b. Consumption
c. Distribution
d. Exchange
Q. The choice of techniques of production is related to the problem of
a. What to produce
b. How to produce
c. For whom to produce
d. None of the above
Q. The functional relationship between inputs and outputs is called
a. Production function
b. Consumption function
c. Investment function
d. Saving function
Q. Firms owned by one individual is known as
a. Proprietorship
b. Partnership
c. Corporations
d. None of the above
Q. Firms owned by two or more individuals is known as
a. Proprietorship
b. Partnership
c. Corporations
d. None of the above
Q. Firms owned by stock holders are known as
a. Proprietorship
b. Partnership
c. Corporations
d. None of the above
Q. The major objective of a firm is
a. Profit maximization
b. Revenue maximization
c. Sales maximization
d. None of the above
Q. Which one of the following is an example of fixed input
a. Raw materials
b. Casual workers
c. Plant and equipments
d. All of the above
Q. In short-run
a. All inputs are fixed
b. All inputs are variable
c. Some inputs are fixed and some are variable
d. None of the above
Q. In long-run
a. All inputs are fixed
b. All inputs are variable
c. Some inputs are fixed and some are variable
d. None of the above
Q. Marginal product of a factor is
a. The additional product received by the firm due to the employment of an additional unit of a variable factor
b. Addition to the total product when one more unit of a factor is employed
c. The rate of change in the total product per unit change in the variable factor.
d. All of the above
Q. Production function expresses
a. The relationship between input and output
b. How maximum output is produced with the given input
c. What is the least-cost combination of input to produce the given output
d. All of the above
Q. The variable cost of a firm vary in direct proportion to the
a. Volume of its output
b. Extent of its profits
c. Volume of its sale
d. All of the above