Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. What will be the effect on inferior commodities when income of the consumer rises?
a. Negative effect
b. Positive effect
c. No effect
d. First increase then decrease
Q. An indiference curve measures level of satisfaction derived from different combinations of commodity X and Y.
a. same
b. higher
c. lower
d. minimum
Q. motion that seeks to reduce the amount of demand presented by government to Re. 1/is known as -
a. Disapproval of policy Cut
b. Token cut
c. Economy cut
d. Vote on account
Q. In the law of demand, the statement "Other things remain constant" means -
a. income of consumer should not change
b. price of other goods should not change
c. taste of consumer should not change
d. All of the above
Q. A firm is in equilibrium when its
a. marginal cost equals the marginal revenue
b. total cost is minimum
c. total revenue is maximum
d. average revenue and marginal revenue are equal
Q. The excess of price a person is to pay rather than forego the consumption of the commodity is called -
a. Price
b. Profit
c. Producers' surplus
d. Consumer's surplus
Q. When the price of a commodity falls, we can expect -
a. the supply of it to increase
b. the demand for it to fall
c. the demand for it to stay constant
d. the demand for it to increase
Q. A situation of large number of firms producing similar goods is termed as :
a. Perfect competition
b. Monopolistic competition
c. Pure competition
d. Oligopoly
Q. The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called
a. Consumer's Surplus
b. Producer's Surplus
c. Landlord's Surplus
d. Worker's Surplus
Q. For an inferior good, demand falls when -
a. price rises
b. income rise
c. price falls
d. income falls
Q. Cross demand expresses the functional relationship between -
a. demand and prices of related commodities
b. demand and income
c. demand and prices
d. demand and supply
Q. Third stage of Law of Variable Proportion is called -
a. negative returns
b. positive returns
c. constant returns
d. increasing returns
Q. Other things being equal, a decrease in quantity demanded of a commodity can be caused by –
a. a rise in the price of the commodity
b. a rise in the income of the consumer
c. a fall in the price of a commodity
d. a fall in the income of the consumer
Q. Which of the following is not an economic problem?
a. Deciding between paid work leisure
b. Deciding between expenditure on one good and the other
c. Deciding between alternative methods of personal savings
d. Deciding between different ways of spending leisure time