Top 50+ Solved Introductory Economics 1 MCQ Questions Answer
Q. When individuals income falls (everything remain the same) his demand for a normalgood
a. rises
b. falls
c. remains the same
d. negative
Q. Cardinal utility analysis to consumer equilibrium was developed by
a. marshall
b. hicks and allen
c. geremy bentham
d. gossen
Q. MC at any level of output is given by
a. slope of tc curve
b. slope of tvc curve
c. slope of either tc or tvc
d. slope of tfc
Q. The cost that cannot be recovered once spent
a. accounting cost
b. fixed cost
c. implicit cost
d. sunk cost
Q. The saucer-type of modern Short run Average Variable Cost (SAVC) represents
a. excess capacity
b. managerial costs
c. load factors
d. reserve capacity
Q. The Long run Average Cost curve (LAC) in modern cost theory is roughly
a. u shaped
b. saucer shaped
c. l shaped
d. rectangular hyperbola
Q. Under increasing returns to scale, which of the following is the nature of the long runaverage cost curve?
a. downward sloping
b. upward rising
c. parallel to output axis
d. identical to short run average cost curve
Q. Which of the following has a U shape?
a. average fixed cost curve
b. total cost curve
c. average variable cost curve
d. total variable cost curve
Q. Implicit cost of a factor of production is determined by its
a. sunk cost
b. variable cost
c. fixed cost
d. opportunity cost
Q. Economic cost include both
a. explicit cost and implicit cost
b. fixed cost and variable cost
c. explicit cost and prime cost
d. money cost and sunk cost
Q. The U shape of MC curve reflects
a. economies of scale
b. law of increasing returns
c. reserve capacity
d. law of variable proportion
Q. Envelope curve is
a. long run marginal cost curve
b. long run average cost curve
c. total cost curve
d. none of the above
Q. In long run, which factor of production is fixed?
a. labour
b. capital
c. building
d. none of the above