Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. The demand for which of the following commodity will not rise in spite of a fall in its price?
a. Television
b. Refrigerator
c. Salt
d. Meat
Q. In the long-run equilibrium, a competitive firm earns -
a. Super-normal profit
b. Profits equal to other firms
c. Normal profit
d. No profit
Q. What is selling cost?
a. Cost incurred on transportation of commodities to market
b. Cost incurred on promoting the sale of the product
c. Cost incurred on commission and salaries personnel
d. Cost incurred on advertisement
Q. The addition to total cost by producing an additional unit of out-put by a firm is called -
a. Variable cost
b. Average cost
c. Marginal cost
d. Opportunity cost
Q. In a perfectly competitive market, a firm's -
a. Average Revenue is always equal to Marginal Revenue
b. Marginal Revenue is more than Average Revenue
c. Average Revenue is more than Marginal Revenue
d. Marginal Revenue and Average Revenue are never equal
Q. An increase in the quantity supplied suggests -
a. a leftward shift of the supply curve
b. a movement up along the supply curve
c. a movement down along the supply curve
d. a rightward shift of the supply curve
Q. Price and output are determinates in market structure other than -
a. monopoly
b. perfect competition
c. oligopoly
d. monopsony
Q. Bilateral monopoly situation is
a. when there are only two sellers of a product
b. when there are only two buyers of a product
c. when there is only one buyer and one seller of a product
d. when there are two buyers and two sellers of a product
Q. A 'Market Economy' is one which -
a. is controlled by the Government
b. is free from the Government control
c. in influenced by international market forces
d. All of these
Q. The law of demand states that -
a. if the price of a good increases, the demand for that good decreases.
b. if the price of a good increases, the demand for that good increases.
c. if the price of a good increases, the quantity demanded of that good decreases
d. if the price of a good increases, the quantity demanded of that good increases.
Q. The demand curve facing a perfectly competitive firm is -
a. downward sloping
b. perfectly inelastic
c. a concave curve
d. perfectly elastic
Q. If average cost falls, marginal cost -
a. increases at a higher rate
b. falls at the same rate
c. increases at a lower rate
d. falls at a higher rate
Q. Consumer gets maximum satisfaction at the point where -
a. Marginal Utility = Price
b. Marginal Utility > Price
c. Marginal Utility < Price
d. Marginal Cost = Price
Q. Micro-economics is also called :
a. Income theory
b. Investment theory
c. Price theory
d. Expenditure theory