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economics MCQ

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the cost per unit of output called?

a)

Opportunity Cost

b)

Total Cost

c)

Average Cost

d)

Marginal Cost

2.

What are articles of distinction like Diamond and luxury cars also known as?

a)

Giffen Good

b)

Prestige Good

c)

Normal Good

d)

Inferior Good

3.

What does the production function explain?

a)

Monetary relationship between input and output.

b)

Techniques of production

c)

Physical relationship between input and output

d)

The ratio of input to that of output.

4.

What is the price elasticity of perfectly Inelastic demand

a)

Equal to one

b)

Zero

c)

Less than one

d)

More than one

5.

When is profit maximization achieved?

a)

When total revenue is less then total cost

b)

When the total Revenue exceeds the total cost by the greatest amount

c)

When total revenue and total cost are equal to each other

d)

When total cost exceeds total revenue by the leat amount

6.

Output per unit of variable input is called __________.

a)

Average fixed cost

b)

Average product

c)

Average revenue

d)

Average variable product

7.

When the demand curve shift to the right, it indicate __________.

a)

An increase in demand

b)

An extention of demand

c)

A decrease in demand

d)

A contraction of demand

8.

When the demand curve shift to the lef, it indicate ______

a)

An increase in demand

b)

An extention of demand

c)

A decrease in demand

d)

A contraction of demand

9.

Extension of demand is shown by _______

a)

A shift in the demand curve to the right

b)

An upward movement along demand curve

c)

A downword movement along demand curve

d)

A shift in demand curve to right

10.

A family if indiiference curves is called _____.

a)

Budget set

b)

Indifference Map

c)

Indiierence curve

d)

Production possibility curve

11.

A positive income effect in the case of normal goods suggests that ________

a)

When income increases, demand decrease

b)

When income decreases, demand increases

c)

When income increases, demand remains constant

d)

When income increases, demand increases

12.

Using geometric method of measurement, what is the price elasticity demand at the mind point of demand curve?

a)

E(d) = 1

b)

E(d) > 1

c)

E(d) < 1

d)

E (d) = 0

13.

If the total revenue of the firm is Rs. 20,000 after selling 50 units of a product, its Average revenue is _____

a)

Rs. 500

b)

Rs. 100

c)

Rs. 400

d)

Rs. 2000

14.

The price elasticity of demand where the demand curve is a straight line, parallel to the Y - axis is ______.

a)

Unitary elasticitic demand

b)

Perfectly elastic demand

c)

Perfectly Inelastic demand

d)

Relatively Elastic demand

15.

A rise in quantity demanded for to rise in population is a case of _______.

a)

Expansion in demand

b)

Increase in demand

c)

Decrease in demand

d)

Contraction in demand

16.

When change in price brings about a less than proportionate change in demand, the elasticity of demand is _________.

a)

Perfectly elastic

b)

Perfectly Inelastic

c)

Relatively Inelastic

d)

Unitary elastic

17.

Rise in demand due to change in price alone is called ______.

a)

Contraction

b)

Extention

c)

Increase

d)

Decrease

18.

A Rise in qunatity demanded due to rise in population is a case of _____.

a)

Expansion in demand

b)

Increase in demand

c)

Contraction in demand

d)

Decrease in demand

19.

What does Elasticity of demand less than one indicate?

a)

Unit Elastic demand

b)

Relatively Elastic demand

c)

Relatively Inelastic Demand

d)

Perfectly Inelastic demand

20.

When Total Utility (TU) starts decreasing what happens to Marginal Utility (MU).

a)

Increases

b)

Decreases

c)

Positive

d)

Negative