Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. In the short run, diminishing marginal returns is implied by
a. Rising MC
b. Falling MC
c. Rising AVC
d. Constant TC
Q. Total variable cost curve is explained by
a. Law of the diminishing marginal returns
b. The price of the variable inputs
c. Production function
d. All the three
Q. TVC curve begins to……….with the onset of diminishing returns
a. Rise at an Increasing rate
b. Rise at an decreasing rate
c. Fall at an Increasing rate
d. Stabilize
Q. TVC curve begins to………with the onset of increasing returns
a. Rise at an increasing rate
b. Rise at an decreasing rate
c. Fall at an Increasing rate
d. Stabilize
Q. Which of the following cannot be U shaped curve
a. AFC curve
b. AC curve
c. AVC curve
d. AMC curve
Q. Long run supply curve of a constant cost industry is
a. Horizontal line at a price that is equal to the long run minimum average cost of production
b. Horizontal line overlapping X axis
c. Vertical line at mid of X axis
d. Vertical line overlapping Y axis
Q. Long run supply curve of a increasing cost industry is
a. Horizontal line overlapping X axis
b. Upward sloping line
c. Downward sloping line
d. Vertical line
Q. Long run supply curve of a decreasing cost industry is
a. Downward sloping curve
b. Upward sloping curve
c. Straight line parallel to X axis
d. Straight line parallel to y axis
Q. In economics, in the long run all the cost………….
a. Are fixed
b. Are variable
c. Except labour are variable
d. Are non controllable
Q. In economic theory, in the short run all the cost are……………
a. Fixed
b. Variable
c. Controllable
d. Semi variable
Q. Marginal cost curve is
a. Positively sloped
b. Negatively sloped
c. Parallel to X axis
d. Parallel to Y axis
Q. Marginal cost can be equal to Average variable cost when
a. Average variable cost is falling
b. Average variable cost is increasing
c. Average variable cost is constant
d. Under any of the above situations
Q. The measurement of sensitivity of quantity demand to change in price is calle(d)
a. Price elasticity
b. Income elasticity
c. Expansion in demand
d. None