Question # 1

Law of diminishing marginal utility provides basis for:

Choose an answer

Law of demand

Law of supply

Laws of returns

Law of variable proportions

A competitive firm is in equilibrium in the long-run where:

Choose an answer

ME = AR = LMC = P

MR = AR = LMC = LAC

MR < AR = LMC <LAC

None of the three

The basic economic problem to all societies is

Choose an answer

elimination of scarcity

what how and for whom to produce

equal distribution of wealth

to develop agriculture

Law of decreasing returns generates

Choose an answer

law of economic growth

law of increasing costs

law of variable costs

law of decreasing costs

The elasticity of demand of durable goods is

Choose an answer

less than unity

greater than unity

equal to unity

zero

Choose the correct condition of equilibrium of firm

Choose an answer

MC = MR

MC curve cuts MR curve from below

Both a and b

MC + MR - AR

Total profit = ?

Choose an answer

Per unit profit x output

Per unit profit x input

Per unit profit + output

per unit profit - input

Quasi rent is a:

Choose an answer

Short-run phenomenon

Long-run phenomenon

Short and long run phenoomenon

None of the three

In case of perfectly elastic demand curve, the demand curve will be parallel to the :

Choose an answer

Horizontal axis

Vertical Axis

None of the above

If price is set above equilibrium level, there will be

Choose an answer

surplus commodity in the market

shortage of commodity in the market

supply curve will shift

demand curve will shift

Supply curve

Choose an answer

is vertical in long run

is flatter in long run

is same in long and short run

is horizontal in both short and long run

Which of the following is a producer good

Choose an answer

pen

cycle

mobile phone

hammer

The following are causes of shift in demand EXCEPT the one

Choose an answer

change in income

change in price

change in fashion

change in prices of substitutes

Which one will be termed as supply of a product.

Choose an answer

One tone potato in cold storage

One ton rice offered for sale in market

One ton rice brought for sale in market at a certain price.

None of the three

A firm decides to exit the industry when

Choose an answer

AC starts rising

MC starts rising

price is less than LAC

TC starts rising

In law of diminishing returns at least one factor

Choose an answer

must be constant

must be owned by the firm

must be purchasable

must be efficient

If we plot the equation y = 20 +3x, its slope is

Choose an answer

20

3

20/3

Indeterminate

Scarcity of goods means

Choose an answer

non availability of goods

high price of goods

People don't want to get such goods

the good is available but it is not free

The law demand will not be valid in case of.

Choose an answer

Very high price products

Normal goods

Price effect

Income effects

The kind of market is undesirable

Choose an answer

general market

specialized market

local market

monopoly market

All materials goods which can satisfy humans wants are called.

Choose an answer

Non economic goods

Economic goods

Capital goods

Services

More Classes

Other Links

Economics Ics Part 1 English Medium Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer