Friends...Good Morning Here is some Economics questions 1. Capitalistic Economy uses____as principal means of allocating resources. (a) Demand (b) Supply (c) Price (d) All of the above 2. Economic Problem arises when : (a) Wants are unlimited (b) Resources are limited (c) Alternative uses of resources (d) All of the above 3. The price of hot- dog’s increases by 22 % and the quantity demanded falls by 25% this indicates that demand for hot dogs is : (a) Elastic (b) Inelastic (c) Unitary elastic (d) Perfectly elastic 4. What is an Engels curve? (a) Another name of demand curve (b) Curve showing both demand & supply curve (c) Curve named after Lord Engels (d) All 5. At the point of inflexion, the marginal product is : (a) Increasing (b) Decreasing (c) Maximum (d) Negative 6. Law of variable proportion is valid when: (a) Only one input is fixed and all other inputs are kept variable (b) All factors are kept constant (c) All inputs are varied in the same proportion (d) None of these 7. …………………. is ideal Market (a) Monopoly (b) Monopolistic (c) Perfect competition (d) Oligopoly 8. In the long – run monopolist can: (a) Incur losses (b) Must earn super normal profits (c) Wants to shut - down (d) Earns only normal profits 9. __________helps us to understand the problem of scarcity better, by showing what can be produced with given resources and technology. A. Isoquant curve B. Production possibility frontier. C.Geffen’s paradox D. Isocost curve 10. Opportunity costs are a result of ________________ A. Scarcity B. Overproduction C. Technology obsolescence D. Abundance of resources 11. Complementary goods dot pen and refill have a_______cross elasticity. A. Negative B. Positive C. Zero D. Infinite 12. If the amounts of two commodities purchased increase or decrease simultaneously when the price of one changes, than the cross elasticity of demand between them is A. One B. Negative C. Positive D. Zero 13. . The prime cost may be considered as: A. Variable cost B. Direct cost C. Sunk cost D. Fixed cost 14. Cost of resources owned by the firm is called as A. Explicit cost B. Implicit cost C. Economic cost D. Produce’s cost 15. Railways is an example of:- A. Perfect competition B. Monopoly C. Oligopoly D. Monopolistic competition 16. All the characteristics of monopolistic competition except:- A. Large number of buyers and sellers B. Freedom of entry and exit C. Excess production capacity in long run D. Full control over price of commodity 17. ………………. is also known as planning curve (a) Long run average cost curve (b) Short run average cost curve (c) Average variable cost (d) Average total cost curve 18. Which of the following is incorrect? (a) The central problem in economics is that of allocating scarce resources in such a manner that society’s unlimited needs are satisfied as well as possible. (b) In mixed economy, the government and the private sector interact in solving the basic economic questions (c) Microeconomics best describes the study of the behaviour of individual agents (d) An important these in economics is that market systems are better than command (socialistic) economies 19. Monopolies are allocatively inefficient because: (a) They restrict the output to keep the price higher than under perfect competition (b) They charge a price higher than the marginal cost (c) Both (a) and (b) are correct (d) Both (a) and (b) are incorrect 20. Demand for intermediate consumption arises in: (a) household consumers (b) government enterprise only (c) corporate enterprises only (d) all producing sectors of the economy
Posted on: Wed, 05 Mar 2014 04:31:46 +0000