Top 150+ Solved General Economics 1 MCQ Questions Answer
Q. Net addition to total cost is called:
a. Marginal cost
b. Average cost
c. Fixed cost
d. Variable cost
Q. The market equilibrium for a commodity is determined by :
a. Market demand
b. Market supply
c. Balancing of the forces of demand and supply
d. Any of the above
Q. When there are only few sellers of the commodity, the market is called:
a. Monopoly
b. Duopoly
c. Oligopoly
d. Monopsony
Q. If the supply curve of the commodity is having a positive slope, a rise in the price of the commodity, results in:
a. Increase in supply
b. Increase in quantity supplied
c. Decrease in supply
d. Decrease in quantity supplied
Q. From the position of stable equilibrium, the market supply of a commodity decreases, while the market demand remains unchanged, then:
a. Equilibrium price falls
b. Equilibrium quantity rises
c. Both equilibrium price and equilibrium quantity decreases
d. Equilibrium price rises, but equilibrium quantity falls
Q. Elasticity of supply for a positively sloped straight line supply curve that intersects the price axis is:
a. Equal to zero
b. Equal to one
c. Greater than one
d. Constant
Q. In which of the following market, advertisement is absent:
a. Monopolistic competition
b. Perfect competition
c. Oligopoly
d. None of the above
Q. -------------- cost can never become zero.
a. Variable cost
b. Fixed cost
c. Marginal cost
d. Average cost
Q. If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is:
a. Inelastic
b. Elastic
c. Unitary elastic
d. Perfectly elastic
Q. If a positively sloped linear supply curve passes through the origin, the elasticity of supply is
a. Inelastic
b. Elastic
c. Unitary elastic
d. Perfectly elastic
Q. The horizontal supply curve parallel to quantity axis represents
a. Elastic supply
b. Inelastic supply
c. Perfectly elastic supply
d. Perfectly inelastic supply
Q. Change in quantity supplied of a product can result from
a. Changes in own price
b. Changes in cost of production
c. Change in technology
d. Change in price of related products
Q. At prices above the equilibrium price
a. Quantity supplied exceeds quantity demanded
b. Quantity demanded exceeds quantity supplied
c. There is shortage
d. All of the above is possible