WorksheetsMCQs in Economics
Total questions: 40
Worksheet time: 20mins
Name
Class
Date
1.
The effect on TU when MU is positive, but decreasing additional unit is:
a)
TU will increase at an increasing rate
b)
TU will decrease at an increasing rate
c)
TU will increase at a diminishing rate
d)
TU will remain constant
2.
The variable on which a consumer's equilibrium is based are:
a)
price and utility
b)
cost and output
c)
price and cost
d)
income and price
3.
Commodity having inelastic demand is :
a)
medicine
b)
pen
c)
cloth
d)
car
4.
Longer the time horizon for demand of a commodity:
a)
less elastic will be the demand
b)
constant elastic demand
c)
more elastic will be the demand
d)
elasticity will be zero
5.
Sum of marginal utilities is known as:
a)
Average utility
b)
common utility
c)
Total utility
d)
Zero utility
6.
Other factors remaining constant, quantity demanded changes with change in:
a)
price of the commodity
b)
income of the consumer
c)
price of related goods
d)
taste of the people
7.
Demand of a good and price of its complementary good are:
a)
Directly related
b)
Inversely related
c)
positively related
d)
not related
8.
An example of a complementary good is:
a)
Gur and sugar
b)
Car and Petrol
c)
Ghee and Oil
d)
Tea and coffee
9.
An example of a substitute good is:
a)
Pen and ink
b)
Sugar and salt
c)
milk and curd
d)
ghee and oil
10.
A tabular statement representing quantities demanded at different price level is called:
a)
Demand chart
b)
Demand schedule
c)
Price line
d)
Demand curve
11.
The demand curve will be parallel to y axis when the demand is:
a)
Perfectly inelastic
b)
Perfectly elastic
c)
Inelastic
d)
Elastic
12.
The consumer is in equilibrium when the following condition is satisfied:
a)
MUx/MUy > Px/Py
b)
MUx/MUy < Px/Py
c)
MUx/MUy = Px/Py
d)
MUx = MUy
13.
Want satisfying power of a good is called:
a)
Demand
b)
Utility
c)
Necessity
d)
Rationality
14.
In Economics, rationality refers to:
a)
Promoting equality
b)
Promoting Production
c)
Promoting self interest
d)
Promoting consumption
15.
Degree of responsiveness of quantity demanded to change in its price is called:
a)
Income elasticity
b)
Market elasticity
c)
Cross elasticity
d)
Price elasticity
16.
Addition to total utility gained by a consumer is called:
a)
Increasing Utility
b)
Total Utility
c)
Marginal Utility
d)
Average Utility
17.
The shape of demand curve is:
a)
Upward slopping
b)
downward slopping
c)
rightward slopping
d)
leftward slopping
18.
Price of a commodity increases from Rs.10 to Rs.12 while the price elasticity of demand is 0.5. The quantity demanded is 5000 units. What will be the quantity demanded at the new price:
a)
4000 units
b)
4500 units
c)
5000 units
d)
5500 units
19.
Total utility is derived by summing up:
a)
Average utilities
b)
Marginal Utilities
c)
Total expenditure
d)
Marginal Expenditure
20.
Tu starts diminishing when:
a)
MU is zero
b)
MU is negative
c)
MU is increasing
d)
MU is constant
21.
One of the factors that lead to a rightward shift in the demand curve of the commodity is:
a)
An increase in income of the consumer in case of inferior good
b)
Decrease in price of substitute goods
c)
A favourable change in taste and preference of the consumer
d)
A decrease in market size
22.
The number of buyers and sellers in a perfect market is:
a)
small
b)
large
c)
few
d)
two
23.
Perfect competition does not have the characteristic of:
a)
large number of buyers and sellers
b)
Product differentiation
c)
Free entry and exit
d)
Uniform price
24.
In case of decrease in supply with no change in demand, equilibrium price will:
a)
Decrease
b)
Remain constant
c)
Increase
d)
Shift rightward
25.
The market situation in which, a commodity is sold at a uniform price is:
a)
Monopoly
b)
Monopolistic competition
c)
Perfect competition
d)
Oligopoly
26.
Output multiplied by price is equal to:
a)
Revenue
b)
Cost
c)
Product
d)
Returns
27.
Preventing others to use the same technology is called:
a)
compulsion
b)
Restriction
c)
Patent
d)
Subsidy
28.
Entry and restrict of firms in case of perfect competition is:
a)
Free
b)
Restricted
c)
Complicated
d)
Difficult
29.
Products in the monopolistic competitive firms are:
a)
Same
b)
Different
c)
Homogeneous
d)
Do not have close substitues
30.
One condition of short run equilibrium in a monopolistic competitive firm is:
a)
MR>MC
b)
MR<MC
c)
MR=MC
d)
AR=MR
31.
One distinguishing feature of perfect competition is:
a)
Heterogeneous products
b)
Different prices
c)
Perfect mobility of factors
d)
Small number of buyers and sellers
32.
In case of falling but positive marginal revenue, total revenue will be:
a)
Increasing at a decreasing rate
b)
Decrease
c)
Remain constant
d)
Becomes negative
33.
In comparison to other market forms, Monopoly is associated with:
a)
Low price, less output
b)
High price, less output
c)
High price, high output
d)
Low price, high output
34.
The demand curve in a monopolistic competition is:
a)
Elastic
b)
More elastic
c)
Less elastic
d)
inelastic
35.
What will happen to PPF if there is technological up gradation in case of both the goods?
a)
Rightward shift
b)
Leftward shift
c)
Rotates inwards
d)
Rotates outwards
36.
Which of the following is a variable cost for a firm?
a)
Interest on loans
b)
Monthly rent
c)
Insurance Premium
d)
Wages to casual labourers
37.
What happens to AP ,when MP is more than AP?
a)
AP rises
b)
AP falls
c)
AP remains constant
d)
None of these
38.
Demand curve under Oligopoly is
a)
Indeterminate
b)
Less elastic
c)
More elastic
d)
Perfectly elastic
39.
--------------- refers to the minimum price, fixed by the government, which is above the equilibrium price.
a)
a. Price Floor
b)
b. Price ceiling
c)
Both (a) and (b)
d)
Neither (a) nor (b)
40.
If increase in demand is greater than increase in supply then equilibrium price -----
a)
Falls
b)
Rises
c)
Remain constant
d)
None of the above
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