Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. Short term contractions and expansions in economic activity are called
a. Expansions
b. Recession
c. Deficits
d. The business cycle
Q. The concept of joint sector implies cooperation between -
a. Public sector and private sector industries
b. State Government and Central Government
c. Domestic and. Foreign Companies
d. None of these
Q. When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will -
a. decrease
b. increase
c. remain the same
d. contract
Q. The income elasticity of demand being greater than one, the commodity must be -
a. a necessity
b. a luxury
c. an inferior good
d. None of these
Q. The main determinant of real wage is -
a. extra earning
b. nature of work
c. promotion prospect
d. purchasing power money
Q. A refrigerator operating in a chemist's shop is an example of -
a. free good
b. final good
c. producers good
d. consumer's good
Q. The situation in which total revenue is equal to total cost, is known as -
a. monopolistic competition
b. equilibrium level of output
c. break-even point
d. perfect competition
Q. The relationship between price of a commodity and the demand for it -
a. is a positive relationship
b. is an inverse relationship
c. They are independent of each other
d. They do not have any relationship
Q. Consumer's sovereignty means:
a. consumers are free to spend their income as they like.
b. consumers have the power to manage the economy.
c. consumer's expenditures influence the allocation of resources.
d. consumer goods are free from government control,
Q. The situation in which total Revenues equals total cost, is known as :
a. Monopolistic competition
b. Equilibrium level of output.
c. Break even point
d. Perfect competition
Q. A market in which there are a few number of large firms is called as
a. Duopoly
b. Competition
c. Oligopoly
d. Monopoly
Q. When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be -
a. Highly elastic
b. Inelastic
c. Relatively elastic
d. Perfectly inelastic
Q. Production function is the relationship between -
a. Production and Profit
b. Production and Prices
c. Production and Production factors
d. Production and Income
Q. Any factor of production can earn economic-rent, when its supply will be -
a. Perfectly elastic
b. Perfectly inelastic
c. Elastic in nature
d. All of the above