Top 350+ Solved Micro Economics 1 MCQ Questions Answer
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 isroughly
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 thelong run average 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
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 workersundergone for making the commodity
a. opportunity cost
b. real cost
c. sacrifice cost
d. implicit cost