Top 350+ Solved Micro Economics 1 MCQ Questions Answer
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. The word ‘Micro Economics and Macro Economics’ were first coined by
a. adamsmith
b. ragnar frisch
c. alfred marshall
d. lord robbins
Q. Excess demand for money, according to Say’s law in the Economy:
a. Is greater
b. Is very less
c. Is equal to zero
d. There is no relationship between excess demand for money and Say’s Law
Q. Which of the following is not an assumption of classical theory?
a. Price flexibility
b. Unemployment
c. Say’s law
d. Neutrality of money
Q. In classical theory the equality between saving and investment is brought about by:
a. Rate of interest
b. Income
c. Consumption
d. Multiplier
Q. The normal condition of a capitalist economy in classical theory is:
a. Underemployment
b. Full employment
c. General unemployment
d. Frictional unemployment
Q. The classical economists believed that the demand for labour is a function of:
a. Total money wages
b. Money wage rate
c. Total real wages
d. Real wage rate
Q. In classical theory of employment, there is the possibility of:
a. Voluntary unemployment
b. No unemployment
c. Involuntary unemployment
d. Disguised unemployment
Q. The idea that a general cut in wages will finally lead to a state of full employment was suggested by :
a. Keynes
b. Marshall
c. J.B.Say
d. A.C.Pigou