Top 150+ Solved Principles of Micro Economics MCQ Questions Answer
Q. ________ social science discipline deals with the integration of differentaspects of the Social Sciences, Humanities, and Human Biology
a. criminology
b. demography
c. geography
d. anthropology
Q. ______is primarily done by observing or testing on real-life data or analysingthe pattern of some specific events in order to identify the nature or the class of trend that specific phenomenon maintains.
a. empirical research
b. action research
c. laboratory research
d. exploratory research
Q. _____ has distinguished between different types of societies on basis of economic system.
a. joseph w. eaton
b. max webber
c. karl marx
d. alphons silbermann
Q. Mannheim defines ________as the sum of those methods by which a societytries to influence human behavior to maintain a given order.
a. social control
b. constitution
c. policing
d. democracy
Q. Implicit costs are:
a. equal to total fixed costs.
b. comprised entirely of variable costs.
c. "payments" for self-employed resources.
d. always greater in the short run than in the long run.
Q. Which would be an implicit cost for a firm? The cost:
a. of worker wages and salaries for the firm.
b. paid for leasing a building for the firm.
c. paid for production supplies for the firm.
d. of wages foregone by the owner of the firm.
Q. If a firm's revenues just cover all its opportunity costs, then:
a. normal profit is zero.
b. economic profit is zero.
c. total revenues equal its explicit costs.
d. total revenues equal its implicit costs.
Q. Suppose a firm sells its product at a price lower than the opportunity cost of theinputs used to produce it. Which is true?
a. the firm will earn accounting and economic profits.
b. the firm will face accounting and economic losses.
c. the firm will face an accounting loss, but earn economic profits.
d. the firm may earn accounting profits, but will face economic losses.
Q. Suppose that a firm produces 200,000 units a year and sells them all for Rs.10each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
a. rs. 500,000 and an economic profit of rs. 200,000.
b. rs. 400,000 and an economic profit of rs. 200,000.
c. rs. 300,000 and an economic profit of rs. 400,000.
d. rs. 200,000 and an economic profit of rs. 500,000.
Q. The short run is a time period in which:
a. all resources are fixed.
b. the level of output is fixed.
c. the size of the production plant is variable.
d. some resources are fixed and others are variable.
Q. The law of diminishing returns only applies in cases where:
a. there is increasing scarcity of factors of production.
b. the price of extra units of a factor is increasing.
c. there is at least one fixed factor of production.
d. capital is a variable input.
Q. The marginal product of labor curve shows the change in total productresulting from:
a. one-unit increase in the quantity of a particular resource used, letting other resources vary.
b. one-unit increase in the quantity of a particular resource used, holding constant other resources.
c. change in the cost of a variable resource.
d. change in the cost of a fixed resource.
Q. When the total product curve is falling, the:
a. marginal product of labor is zero.
b. marginal product of labor is negative.
c. average product of labor is increasing.
d. average product of labor must be negative
Q. When marginal product reaches its maximum, what can be said of totalproduct?
a. total product must be at its maximum
b. total product starts to decline even if marginal product is positive
c. total product is increasing if marginal product is still positive
d. total product levels off