Top 150+ Solved Fundamentals of Economics MCQ Questions Answer
Q. A Production Function refers to ________________
a. Scale of production
b. relationship between resources
c. relationship between inputs and output
d. relationship between costs and output
Q. __________ cost remains constant even if production is stopped.
a. Fixed
b. Variable
c. Semi-Variable
d. Marginal
Q. ________ refers to the quantity of a commodity which a firm is willing to produce and offer forsale.
a. Individual Supply
b. Market Supply
c. Individual Demand
d. Market Demand
Q. Total input is maximum when _____________
a. MP = 0
b. MP is increasing
c. MP is decreasing
d. MP is constant
Q. Which of the following does not characterize monopolistic competition?
a. product differentiation
b. many producers
c. absence of advertising 8
d. partial control over price
Q. Pricing for selling the same commodity at different selling prices is known as ______
a. Skimming Pricing
b. Differential Pricing
c. Penetration Pricing
d. Cost – Plus Pricing
Q. In a perfect competition, a firm earns super normal profit when the AR of the firm _____ theACT of the firm.
a. equals to
b. exceeds
c. is lower than
d. neither exceeds nor is lower than
Q. ________ refers to the market situations whether there is one seller and there is not closesubstitute to the commodity sold by the seller.
a. Perfect Competition
b. Monopoly
c. Oligopoly
d. Monopolistic Competition
Q. Cash Money is created by the _________________
a. Central Bank of a country
b. Commercial Banks
c. State Bank of India
d. Co-operative Banks
Q. “Money is what money does”. This definition was given by __________
a. Adam Smith
b. Walker
c. Robbins
d. Robertson
Q. Traditional function of a commercial bank is ______________
a. issue of gift cheque
b. credit creation
c. providing locker facilities
d. acceptance of deposits
Q. ________ is one among the quantitative methods of credit control.
a. Bank Rate Policy
b. Moral Suasion
c. Direct Action
d. Rationing of Credit
Q. ___________ market is the nerve centre of the financial system.
a. Money
b. Capital
c. Local
d. National