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