Top 150+ Solved Fundamentals of Economics MCQ Questions Answer
Q. In the long run, a firm in perfect competition earns _____________
a. normal profit only
b. abnormal profit
c. average profit of past 5 years
d. 12.33 per cent profit on capital employed
Q. Oligopoly means _________
a. Single seller
b. few sellers
c. large number of sellers
d. no buyers
Q. Penetration Pricing is adopted by following a ___________
a. low price
b. high price
c. dual price
d. support price
Q. When the price of a complementary product falls, the demand for the other product will ___
a. Fall
b. Increase
c. remain stable
d. drop by 25 per cent
Q. The money supply affects the rate of interest; when the money supply increases, rate ofinterest will be decreased. It is explained by _____________
a. Keynes
b. Walker
c. Robbins
d. Crowther
Q. __________ is one among the qualitative credit control instruments used by the RBI.
a. Bank Rate Policy
b. Moral Suasion
c. Open Market Operations
d. Cash Reserve Ratio
Q. The ‘Welfare definition’ of Economics was introduced by ______________
a. Adam Smith
b. Alfred Marshall
c. Lionel Robbins
d. J. R. Hicks
Q. Micro-economics deals with the ___________
a. economic behavior of the individual
b. economy as a whole
c. trade relations
d. economic growth of the society
Q. Point Elasticity was propounded by ________________
a. Alfred Marshall
b. Adam Smith
c. Lionel Robbins
d. Jacob Viner