Multiple Choice Questions (MCQs)
Which of the following is correct?
The supply curve slopes upward demonstrating that at:
Total utility increases at a decreasing rate is shown by negative slope of ________ curve.
Amount of total money spent on a good having price "P" and quantity "Q" can be obtained by which of the following?
Which of the following is correct mathematical formula of marginal cost?
Marginal utility measures:
When the two goods are perfect substitutess to each other then the marginal rate of substitution for them will be:
Income elasticity of demand for a normal good is always
All the points on the indifference curve give equal level of
Which of the following is included in economic depreciation to make it equal to the user cost of capital?
When demand is inelastic, an increase in price will result in
Which of the following costs always increase(s) as output increases?
Entrepreneur gets its reward in shape of:
When we buy a product at low price in one location and sell it at high price in another location, it is known as ________ in economics.
Coffee and tea are considered as substitutes if price of coffee increases then it will shift
Market equilibrium is a market state where:
Which of the following characteristics differentiates competitive market from non-competitive market?
Which of the following will cause the demand curve for butter to shift to the right?
Coffee and tea are considered as substitutes if price of tea increases then it will shift:
Coffee and tea are considered as substitutes, if price of tea decreases then it will shift
Which of the following will cause the demand curve for Apple to shift to the right?
If the cross elasticity of demand is -2
Which of the following concepts shows the maximum output that a firm can produce for every specified combination of inputs given the state of technology?
Suppose a firm produces 10 units of output, its average variable cost is Rs. 100 and average total cost is Rs.250. Firm's average fixed cost is:
Slope of income consumption curve for an inferior good is:
The expenditure that has been made and cannot be recovered is called:
Marginal product crosses the horizontal axis (is equal to zero) at the point where:
Cross-price elasticity of demand for the substitute goods will always be:
In the long run, if a firm is facing higher marginal cost than the average cost; then certainly per unit total cost will:
The difference between the economic and accounting costs of a firm are:
If a change in the price of one good has no effect on the quantity demanded of another good, then both goods are ________.
In a production process, all inputs are increased by 10%; but output increases more than 10%. This means that the firm experiences:
Indifference curve cannot slope upward due to the assumption of
The ratio of the wage rate to rental cost of capital is called
Which of the following is a branch of economics that deals with observations of real economic facts?
Amount of one good that a consumer gives up to obtain more of another good is known as marginal rate of:
When the average product is decreaing, marginal product will:
The bowed out shape of the production possibilities frontier indicates:
Which of the following inputs is(are) variable in the long run?
Which of the following statements is correct?
In the long run, which of the following is considered a variable cost?
The cost associated with opportunities that are foregone when a firm's resources are not put to their highest value use is called
If the percentage change in quantity demand for milk is same as the percentage change in price of milk then the price elasticity of demand for milk is:
Which of the following is NOT true about indifference curve?
The additional satisfaction a consumer gains from consuming one more unit of a good is called as:
Suppose a college professor opens an academy for the coaching classes. He hires three more teachers with him. The college professor would most likely be which of the following factors of production?
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