Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. The famous book “An enquiry into the nature and causes of wealth of Nation” was published in-
a. 1776
b. 1750
c. 1850
d. 1886
Q. The law of indifference is/are also know by-
a. Law of substitution
b. law of equimarginal utility
c. Law of diminishing marginal utility
d. All the three
Q. Which of the following is not a central problem of a society
a. What to produce
b. How to produce
c. For whom to produce
d. What to eat
Q. The central problem of how to produce is resolved by
a. Demand and supply of factor inputs
b. Demand and supply of goods
c. Relative prices and availability of factors of production
d. Government intervention
Q. In free economy the decision about investment, saving and consumption are decided by
a. Price mechanism
b. Central bank
c. Planning Commission
d. Finance budget
Q. Which of these statement is true about production possibility curve (PPC/PPF)
a. It shows various combinations of two goods which yield same level of satisfaction
b. It shows various combination of two goods which an economy can produce with a given amount of resources
c. It shows various combination of two goods which an economy can produce with a given budget
d. It shows various combination of two goods which an economy can produce with a given time
Q. If production possibility frontier is linear it implies
a. Constant opportunity cost
b. Economy is stagnant
c. Underemployment of factor of production
d. With the increase in production, opportunity cost also increases
Q. The opportunity cost of consumption is
a. Lack of capital formation for future
b. Greater investment
c. Full employment
d. Deflation
Q. The opportunity cost of capital investment is
a. Sacrifice of current consumption
b. More consumption on luxury items
c. Lower capital growth in future
d. Wastage of Resources
Q. Any point beyond PPF is
a. Attainable
b. Unattainable
c. Attainable with increase in production facilities
d. None
Q. If an economy is working at a point left to PPF curve it shows that………
a. The economy is working at less than the full employment level
b. The economy is at full employment level
c. The economy is country is faced with excess production
d. There is glut of imports
Q. Curvature of PPF is due to………
a. Increase in opportunity cost
b. Decrease in opportunity cost
c. Fall in demand
d. Fall in supply
Q. PPF is negative sloped due to
a. Scarcity of production resources
b. Unlimited wants
c. Improvement in technology
d. Increasing opportunity cost
Q. Disguised unemployment refers to the situation when
a. Marginal Productivity of the surplus workers is zero
b. Marginal productivity of the surplus workers is less than average productivity
c. Marginal productivity of the surplus workers is falling sharply
d. Marginal productivity of the surplus workers is falling sharply
Q. Structural unemployment is mainly due to
a. Structural changes in the economy
b. Technological development
c. Growth in GDP
d. Population explosion.