Top 150+ Solved General Economics 1 MCQ Questions Answer
Q. Goods without which people can not live are called:
a. Comforts
b. Luxuries
c. Necessaries
d. None
Q. The problem of what to produce is a problem of:
a. Distribution
b. Technological choice
c. Consumption
d. Allocation of resources
Q. Those things that possess both utility and scarcity are called:
a. Economic Goods
b. Free goods
c. Intermediate goods
d. Luxuries
Q. If a worker specializes in the production of a single good, it is called:
a. Product based division of labour
b. Process based division of labour
c. Worker based division of labour
d. None of these
Q. Goods produced for use in future productive process are called:
a. Intermediate goods
b. Final goods
c. Consumer goods
d. Capital goods
Q. In a horizontal straight line demand curve, the price elasticity of demand is:
a. Unity
b. Infinity
c. Zero
d. Less than one
Q. Who wrote the article Laws of Returns Under Competitive Conditions?
a. Joan Robinson
b. E.H. Chamberlin
c. A.C. Pigou
d. P. Sraffa
Q. Increase in output less than proportional to increase in inputs is called:
a. Increasing returns
b. Constant returns
c. Diminishing returns
d. Marginal returns
Q. A simplified representation of a real situation is called:
a. Theory
b. Hypotheses
c. Evidence
d. Economic Model
Q. When marginal product reaches its maximum, what can be said of total product?
a. Total product must be at its maximum
b. Total product starts to decline even if marginal product is positive
c. Total product is increasing if marginal product is still positive
d. Total product levels off
Q. When a firm doubles its inputs and finds that its output has more than doubled, this is known as:
a. Economies of scale.
b. Constant returns to scale.
c. Diseconomies of scale.
d. A violation of the law of diminishing returns.
Q. When average product is at a maximum, marginal product is:
a. Zero
b. Increasing
c. Equal to average product
d. Greater than average product
Q. The want satisfying power of a commodity:
a. Satisfaction
b. Utility
c. Value
d. Marginal Utility
Q. Supply curve represents -------- relationship between quantity and price.
a. Direct
b. Inverse
c. Either direct or inverse
d. None of the above
Q. Laws of return shows ---------production function.
a. Short-term
b. Medium term
c. Long term
d. Annual