Top 150+ Solved Fundamentals of Economics MCQ Questions Answer
Q. All the following functions are associated with commercial bank except that
a. Commercial Bank cannot issue Paper Notes
b. Commercial Bank acts as a Banker to the Government
c. Commercial Banks are mostly privately – owned and privately – managed
d. to accept Deposit from the Public is the most important function of a commercial bank
Q. Gresham’s Law is true where
a. only Barter System operates
b. only Paper Currency operates
c. only Metal Currency operates
d. Both Paper and Metal Currencies operates
Q. Quantity Theory of Money states that 3
a. Price Level is directly proportional to Money Supply
b. Price Level is inversely proportional to Money Supply
c. Price Level is not related to Money Supply
d. Price Level is inversely related to Money Demand
Q. The Growth definition of Economics was introduced by
a. J.M.Keynes and P.A. Samuelson
b. Adam Smith
c. Alfred Marshall
d. Lionel Robbins
Q. According to the ‘Law of Demand, demand varies ________ with price.
a. Directly
b. Indirectly
c. Proportionately
d. Inversely
Q. When excess demand occurs in an unregulated market, there is a tendency for:
a. price to rise
b. quantity supplied to decrease
c. quantity demanded to increase
d. price to fall
Q. In the case of inferior goods, the consumer
a. purchases less with increase in income
b. purchases less with decrease in price
c. purchases more with increase in income
d. purchases more with decrease in price
Q. A rational producer produces in that region where
a. marginal physical product of the fixed input becomes negative
b. marginal physical product of the variable input becomes negative
c. marginal physical product of the fixed input becomes increasing
d. marginal physical product of the variable input becomes declining
Q. In a firm doubles all inputs, and output doubles as well, the firm is subject to
a. constant returns to scale
b. increasing returns to scale
c. decreasing returns to scale
d. economies of scale
Q. As output increases, AFC of a firm
a. Increases
b. remains constant
c. continuously declines
d. initially increases, afterwards declines
Q. Which of the first order condition for the profit of a firm be maximum?
a. AC = MR
b. MC = MR
c. MR = AR
d. AC = AR
Q. Opportunity cost is measured in terms of the
a. optional cost that has been avoided
b. negative cost that has been sacrificed
c. accounting cost that has been paid
d. next best alternative that has been foregone
Q. Due to the operation of ‘Laws of return to Scale’ LAC curve is
a. Rectangular hyperbola
b. U-Shaped
c. Parallel to the horizontal axis
d. Parallel to the vertical axis
Q. The AR curve and industry demand curve are identical
a. in case of monopoly
b. in case of oligopoly
c. in case of monopolistic competition
d. in case of perfect competition