Top 50+ Solved Introductory Economics 1 MCQ Questions Answer
Q. The U shape of the average total cost curve reflects
a. ldmu
b. the law of variable proportions
c. consumer’s surplus
d. reserve capacity
Q. The shape of TVC and TC are
a. rectangular hyperbola
b. inverse ‘s’ shape
c. horizontal straight line
d. l shaped
Q. The cost expressed not in terms of money but in terms of efforts of workers undergonefor making the commodity
a. opportunity cost
b. real cost
c. sacrifice cost
d. implicit cost
Q. The MC curve cuts the AC curve at
a. the maximum point
b. the initial point
c. the minimum point
d. any point
Q. The minimum point of ATC is at.............. position of the minimum point of AVC
a. right
b. left
c. same
d. all of above can be
Q. If the long run cost curve shifts down wards it is an indication of
a. technological progress
b. lower factor prices
c. both of these
d. reserve capacity
Q. The U shape of the LAC reflects
a. law of variable proportions
b. laws of returns to scale
c. reserve capacity
d. none of these
Q. A production possibility curve is concave to the point of origin because of
a. increasing marginal rate of transformation (mrt)
b. increasing marginal opportunity cost (moc)
c. both of the above
d. decreasing marginal rate of transformation
Q. An Essay on the Nature and Significance of Economic Science was written by
a. adamsmith
b. alfred marshall
c. lord robbins
d. samuelson
Q. Other things being equal a decrease in demand can be caused by
a. a fall in price of the commodity
b. a fall in income of the consumer
c. a rise in price of the substitute
d. none of these
Q. When price of a product falls, more of it is purchased because of
a. the substitution effect
b. the income effect
c. neither substitution effect nor income effect
d. both the substitution and income effects
Q. “Utility or satisfaction is a subjective concept; therefore it could only be ranked”.The statement supports
a. cardinal utility theorist
b. ordinal utility theorist
c. behavioral theorist of the firm
d. none of the above