Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the
a. Equilibrium quantity will decrease
b. Equilibrium price will decrease
c. Equilibrium price will go up
d. Equilibrium quantity will increase
Q. Very short period is the market condition where the supply remain perfectly
a. Elastic
b. Inelastic
c. Unity elastic
d. Elasticity less than 1
Q. In the long run price is governed by ………….
a. Cost of Production
b. Demand supply forces
c. Marginal utility
d. None
Q. Adam Smith called price mechanism as
a. Invisible hands
b. Consumer sovereignty
c. Consumer liberty
d. Price regulation
Q. In the long run a firm in perfect competition earns
a. Normal profit only
b. Abnormal profit
c. Average profit of past five years
d. 12.33% profit on capital employed
Q. The practice of selling same product to different persons at different price is called
a. Price discrimination
b. Price rigging
c. Price manipulation
d. Price Justification
Q. Which of these is not a cause of price discrimination
a. Ignorance of consumer
b. Place differentiation
c. Variation in quality
d. Tax differentiation
Q. If both the disposal income as well as number of suppliers of a product rises, the equilibrium
a. Price remain same
b. Price will go up
c. Quantity will go up
d. Quantity will go down
Q. Simultaneous increase in demand and quantity supplied will
a. Increase in equilibrium price and quantity
b. Decrease equilibrium price and quantity
c. Increase equilibrium price but decrease quantity
d. Decrease equilibrium price but increase quantity
Q. A firm faces the shut down situation when
a. Price is less than average variable cost
b. Price is more than the average variable cost
c. Price is equal to fixed cost
d. Price is more than the average fixed cost
Q. If a firm shut down at a level when AVC > Price, the firm restricts its losses to
a. Total fixed cost
b. Average fixed cost
c. Variable cost
d. Average variable cost
Q. Fixed costs are
a. Avoidable in the short run
b. Sunk cost in the short run
c. Sunk cost in the long run
d. Unavoidable in the long run
Q. When the price is less than the average variable cost, the firm should ………….
a. Continue to operate till the market recover
b. Shut down its operation for the time being
c. Retrench workers and pay them compensation
d. Clear the existing stock at a price less than the prevailing price to beat the competitors
Q. Breakeven point refers to the situation when
a. Total revenue is equal to total cost
b. Total revenue is more than total cost
c. Total revenue is less than total cost
d. Total revenue is equal to total variable cost
Q. A firm that break even after all the economic costs are paid in earning
a. Economic profit
b. Accounting profit
c. Normal profit
d. Super normal profit