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MCQs

Total Questions : 874 | Page 1 of 88 pages
Question 1. The capital that is consumed by an economy or a firm in the production process is known as
  1.    Capital loss
  2.    Production cost
  3.    Dead-weight loss
  4.    Depreciation
 Discuss Question
Answer: Option D. -> Depreciation
Question 2. Who propounded the opportunity cost theory of international trade?
  1.    Ricardo
  2.    Marshall
  3.    Heckscher & Ohlin
  4.    Haberler
 Discuss Question
Answer: Option D. -> Haberler
Question 3. Which among the following statement is INCORRECT?
  1.    On a linear demand curve, all the five forms of elasticity can be depicted
  2.    If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
  3.    If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
  4.    The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
 Discuss Question
Answer: Option C. -> If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
Question 4. 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
  1.    Increase
  2.    Decrease
  3.    Remain the same
  4.    Become zero
 Discuss Question
Answer: Option A. -> Increase
Question 5. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is
  1.    Zero
  2.    Infinite
  3.    Equal to 1
  4.    Greater than zero but less than infinity
 Discuss Question
Answer: Option B. -> Infinite
Question 6. An individual demand curve slopes downward to the right because of the
  1.    Working of the law of diminishing marginal utility
  2.    Substitution effect of decrease in price
  3.    Income effect of fall in price
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
Question 7. Income elasticity of demand is defined as the responsiveness of
  1.    Quantity demanded to a change in income
  2.    Quantity demanded to a change in price
  3.    Price to a change in income
  4.    Income to a change in quantity demanded
 Discuss Question
Answer: Option A. -> Quantity demanded to a change in income
Question 8. The supply of a good refers to
  1.    Stock available for sale
  2.    Total stock in the warehouse
  3.    Actual production of the good
  4.    Quantity of the good offered for sale at a particular price per unit of time
 Discuss Question
Answer: Option D. -> Quantity of the good offered for sale at a particular price per unit of time
Question 9. The cost of one thing in terms of the alternative given up is called
  1.    Real cost
  2.    Production cost
  3.    Physical cost
  4.    Opportunity cost
 Discuss Question
Answer: Option D. -> Opportunity cost
Question 10. Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium
  1.    Price will decrease
  2.    Price will increase
  3.    Quantity will decrease
  4.    Quantity will increase
 Discuss Question
Answer: Option C. -> Quantity will decrease

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