Top 150+ Solved General Economics 1 MCQ Questions Answer
Q. Economies of scale refers to:
a. Advantages resulting from large scale production
b. Disadvantages resulting from large scale production
c. Advantages resulting from the increase in the number of consumers
d. All of the above
Q. Which one of the following is not related to economies of scale:
a. Scope for division of labour and specialization
b. Scope for getting inputs at cheaper rates
c. Difficulty faces by the managers to coordinate the business
d. Scope for better storage facilities
Q. The law of Diminishing returns is applicable to:
a. Agriculture only
b. Industry only
c. In short-run only
d. Universally
Q. Other things remaining the same, the quantity of a product demanded increases with ------------ in price.
a. Increase
b. Decrease
c. Variation
d. None of the above
Q. Relation between price of a commodity and demand for another commodity is measured by:
a. Price elasticity
b. Income elasticity
c. Cross elasticity
d. Elasticity of substitution
Q. Demand varies ------------- with price.
a. Directly
b. Positively
c. Inversely
d. None of the above
Q. In the case of luxury goods, the income elasticity of demand will be:
a. Less than unity
b. Unity
c. More than unity
d. All the above
Q. Income elasticity is positive, but less than unity in the case of:
a. Necessity
b. Luxury
c. Inferior
d. Substitutes
Q. In drawing an individual demand curve for a commodity, all but which of the following are kept constant:
a. Individual’s money income
b. The prices of the related commodity
c. Price of the commodity under consideration
d. Tastes of the consumer