Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. Under which market condition do firms have excess capacity?
a. Perfect compettion
b. Monopolistic competition
c. Duopoly
d. Oligopoly
Q. Price theory is also known as -
a. Macro Economics
b. Development Economics
c. Public Economics
d. Micro Economics
Q. Different firms constituting the industry, produce homogeneous goods under
a. monopoly
b. monopolistic competition
c. oligopoly
d. perfect competition
Q. Gross Profit means -
a. Total investment over total saving
b. Changes in methods of production
c. Changes in the form of business organisation
d. Total receipts over total expenditure
Q. Which of the following is not a fixed cost?
a. Salaries of administrative staff
b. Rent of factory building
c. Property taxes
d. Electricity charges
Q. Inwhich market structure is the demand curve of the market represented by the demand curve of the firm?
a. Monopoly
b. Oligopoly
c. Duopoly
d. Perfect Competition
Q. If a firm is operating at loss in the short- period in perfect combination, it should :
a. decrease the production and the price.
b. increase the production and the price
c. continue to operate as long as it covers even the variable costs.
d. shut-down and leave the industry
Q. At "Break-even point",
a. the industry is in equilibrium in the long run.
b. the producers suffers the minimum losses
c. the seller earns maximum profit
d. the firm is at zero-profit point
Q. The internal rate of return -
a. must be less than the interest rate if the firm is to in-vest.
b. makes the present value of profits equal to the present value of costs.
c. falls as the annual yield of an investment rises.
d. is equal to the market interest rate for all the firm's in-vestment.
Q. Which of the following occurs when labour productivity rises?
a. The equilibrium nominal wage falls.
b. The equilibrium quantity of labour falls.
c. Competitive firms will be induced to use more capital
d. The labour demand curve shifts to the right
Q. Which of the following are consumer semi-durable goods?
a. Cars and television sets
b. Milk and Milk products
c. Foodgrains and other food products
d. Electrical appliance like fans and electric irons.
Q. Which of the following statements is correct?
a. Most workers will work for less than their reservation wage.
b. The reservation wage is the maximum amount any firm will pay for a worker.
c. Economic rent is the difference between the market wage and the reservation wage.
d. Economic rent is the amount one must pay to enter a desirable labour market.
Q. The basic object of all production is to
a. satisfy human wants
b. provide employment
c. make profits
d. increase physical output
Q. The equilibrium of a firm under perfect competition will be determined when -
a. Marginal Revenue > Average Cost
b. Marginal Revenue > Average Revenue
c. Marginal Revenue = Marginal Cost
d. Marginal Cost > Average Cost
Q. Which of the following is an inverted `U' shaped curve?
a. Average cost
b. Marginal cost
c. Total cost
d. Fixed cost