Top 80+ Solved Principles of Economics and Management MCQ Questions Answer
Q. Demand for a commodity refers to:
a. Need for the commodity
b. Desire for the commodity
c. Amount of the commodity demanded at a particular price and at a particular time
d. Quantity demanded of that commodity
Q. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
a. Increase
b. Decrease
c. Remain the same
d. Become zero
Q. Income elasticity of demand is defined as the responsiveness of:
a. Quantity demanded to a change in income
b. Quantity demanded to a change in price
c. Price to a change in income
d. Income to a change in quantity demanded
Q. The supply of a good refers to:
a. Stock available for sale
b. Total stock in the warehouse
c. Actual Production of the goo
d. D. Quantity of the good offered for sale at a particular price per unit of time
Q. In the short run, when the output of a firm increases, its average fixed cost:
a. Remains constant
b. Decreases
c. Increases
d. First decreases and then rises
Q. The cost of one thing in terms of the alternative given up is called:
a. Real cost
b. Production cost
c. Physical cost
d. Opportunity cost
Q. In which of the following market structure is the degree of control over the price of its product by a firm very large?
a. Imperfect competition
b. Perfect competition
c. Monopoly
d. In A and B both
Q. Demand for factors of production is:
a. Derived demand
b. Joint demand
c. Composite deman
d. D None of the above
Q. The producer’s demand for a factor of production is governed by the ___ of that factor.
a. Price
b. Marginal productivity
c. Availability
d. Profitability
Q. Who is the ‘lender of the last resort’ in the banking structure of India?
a. State Bank of India
b. Reserve Bank of India
c. EXIM Bank of India
d. Union Bank of India
Q. ____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks.
a. Repo rate
b. Bank rate
c. Prime lending rate
d. Reverse repo rate
Q. Which among the following is a function of the Reserve Bank of India?
a. Bank issues the letters of credit to their customers certifying their creditability
b. Collecting and compilation of statistical information relating to banking & other financial sectors
c. Banks under write the securities issued by public or private organizations
d. Accepting deposits from the public
Q. The following is the direct tax among:
a. House tax
b. Entertainment tax
c. Service tax
d. Value added tax
Q. Which among the following is a cause of inflation?
a. Deficit financing
b. Rise in external loans
c. Unfavorable balance of payment
d. A hike in the CRR by the central bank of the country
Q. The capital that is consumed by an economy or a firm in the production process is known as:
a. Capital loss
b. Production cost
c. Dead-weight loss
d. Depreciation