Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. Cost of production of the producer is given by:
a. sum of wages paid to labourers.
b. sum of wages and interest paid on capital.
c. sum of wages, interest, rent and supernormal profit.
d. sum of wages, interest, rent and normal profit.
Q. The market price is related to :
a. very short period
b. short period
c. long period
d. very long period
Q. The demand for necessities is -
a. elastic
b. perfectly inelastic
c. inelastic
d. perfectly elastic
Q. If a good has negative income elasticity and positive price elasticity of demand, it is a
a. giffen good
b. normal good
c. superior good
d. an inferior good
Q. A unit price elastic demand curve will touch -
a. both price and quantity axis
b. neither price axis, nor quantity axis
c. only price axis
d. only quantity axis
Q. If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be -
a. less than unity
b. infinitely large
c. greater than unity
d. equal to unity
Q. According to Modern Theory of Rent, rent accrues to -
a. capital only
b. any factor
c. labour only
d. land only
Q. As the number of investments made by a firm increases, its internal rate of return -
a. declines due to diminishing marginal productivity.
b. declines because the market rate of interest will fall, ceteris paribus.
c. increases to compensate the firm for the current consumption foregone.
d. increases because the level of savings will fall.
Q. The opportunity cost of a factor of production is -
a. what it is earning in its present use.
b. what it can earn in the long period.
c. what has to be paid to retain it in its present use.
d. what it can earn in some other use.
Q. The demand for labour is called -
a. Market demand
b. Direct demand
c. Derived demand
d. Factory demand
Q. Equilibrium price is the price when :
a. supply is greater than demand
b. supply is less than demand
c. demand is very high
d. supply is equal to demand
Q. Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a
a. change in the price of the goods
b. change in the price of substitutes
c. change in the price of the complements
d. change in the price of joint products
Q. Product differentiation is the most important feature of -
a. Pure competition
b. monopolistic competition
c. monopoly
d. oligopoly
Q. Division of labour is the result of -
a. Complicated work
b. excessive pressure
c. excess supply of labour
d. specialization
Q. Which from the following is not true when the interest rate in the economy goes up?
a. Saving increases
b. Lending decreases
c. Cost of production increases
d. Return on capital increases