Top 150+ Solved Principles of Micro Economics MCQ Questions Answer
Q. Economies of scale
a. set in as soon as diminishing marginal physical productivity is experienced
b. are usually considered to be a phenomenon of the long run
c. are not always available in the short run
d. help ensure that industries will be competitive rather than monopolized
Q. Marginal costs and average variable costs are equal when
a. average variable cost is a maximum
b. average variable cost is rising
c. average variable cost is falling
d. average variable cost is a minimum
Q. Theory of demand examines the behaviour of the--------
a. Consumer
b. Producer
c. Firm
d. Industry
Q. The want satisfying power of a commodity:
a. Satisfaction
b. Utility
c. Value
d. Marginal Utility
Q. Change in utility resulting from one unit change in consumption is called:
a. Total Utility
b. Extra Utility
c. Marginal Utility
d. Average Utility
Q. When Marginal Utility is negative, Total Utility:
a. Declines
b. Increases
c. Remains the same
d. None of these
Q. Measurable utility is the postulate of:
a. Neo-Classical school
b. Ordinalist school
c. Behaviourist school
d. Keneysians
Q. Which of the following is Gossen’s first law:
a. Law of Diminishing Marginal Utility
b. Law of Equi Marginal Utility
c. Law of substitution
d. Law of Diminishing Returns
Q. In the case of a free good, the consumer will be in equilibrium when:
a. MU = P
b. MU = 0
c. TU = 0
d. TU =1
Q. Change in demand due to a change in the price of related good :
a. Cross demand
b. Price demand
c. Income demand
d. None of these
Q. The Price and quantity relationship for an inferior good is:
a. Direct
b. Inverse
c. Positive
d. Indirect
Q. In the case of normal goods, the quantity demanded varies inversely with:
a. Price of good
b. Income of the consumer
c. Fashion of the good
d. Savings