Top 150+ Solved General Economics 1 MCQ Questions Answer

From 91 to 105 of 199

Q. When MC cuts AC, AC is at its ------------

a. Maximum

b. Minimum

c. Zero

d. Negative

  • b. Minimum

Q. An increase in market supply, demand remaining the same causes

a. Increase in equilibrium price

b. Decrease in equilibrium quantity

c. Decrease in equilibrium price and increase in equilibrium quantity

d. Both equilibrium price and quantity rises

  • c. Decrease in equilibrium price and increase in equilibrium quantity

Q. Cost function relates cost to

a. Input

b. Output

c. Raw material

d. Machines

  • b. Output

Q. An increase in market demand, supply remaining the same results in

a. Decrease in equilibrium price

b. Decrease in equilibrium quantity

c. Decrease in equilibrium price and increase in equilibrium quantity

d. Both equilibrium price and quantity rises

  • d. Both equilibrium price and quantity rises

Q. There is no distinction between firm and industry in

a. Perfect competition

b. Monopoly

c. Monopolistic competition

d. Oligopoly

  • b. Monopoly

Q. A fall in the market demand, supply remaining the same results in

a. Increase in equilibrium price

b. Increase in equilibrium quantity

c. Increase in equilibrium price and decrease in equilibrium quantity

d. Both equilibrium price and quantity falls

  • d. Both equilibrium price and quantity falls

Q. The cost of next best alternative is called

a. Marginal cost

b. Average cost

c. Opportunity cost

d. Direct cost

  • c. Opportunity cost

Q. When MC is greater than AC, AC

a. Rises

b. Falls

c. Maximum

d. Minimum

  • a. Rises

Q. There is ------- relationship between price and quantity supplied

a. Positive

b. Negative

c. Constant

d. Inverse

  • a. Positive

Q. Supply curve represents -------- relationship between quantity and price

a. Direct

b. Inverse

c. Either direct or inverse

d. None of the above

  • a. Direct

Q. National Income means:

a. GNP at Factor Cost

b. GNP at Market Price

c. NNP at Factor Cost

d. NNP at market Price

  • c. NNP at Factor Cost

Q. The difference between GDP and NDP equals:

a. Transfer payments

b. Net indirect taxes

c. Net factor income from abroad

d. Depreciation

  • d. Depreciation

Q. Which of the following is true?

a. GNP + Depreciation = NNP

b. GNP = GDP + Net factor income from abroad

c. NDP = GNP minus net indirect taxes

d. NNP = DGP minus depreciation

  • b. GNP = GDP + Net factor income from abroad

Q. NNP is equal to:

a. GNP plus Depreciation

b. GNP minus depreciation

c. GNP minus exports

d. GNP plus exports

  • b. GNP minus depreciation

Q. Which of the following is not a method of national income estimation?

a. Matrix method

b. Income method

c. Expenditure method

d. Product method

  • a. Matrix method
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