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WorksheetsME_CIA_II
Total questions: 50
Worksheet time: 50mins
Name
Class
Date
1.
Which of the following is not a variable input
a)
Raw material
b)
Power
c)
Equipment
d)
None of these
2.
Which cost is more useful for decision making
a)
Opportunity Cost
b)
Sunk Cost
c)
Historical Cost
d)
Future Cost
3.
Which of the following is a short run law
a)
Decreasing Returns to Scale
b)
Increasing Returns to Scale
c)
Law of diminishing returns
d)
Constant Returns to Scale
4.
Which one is not a property of isoquan
a)
Downward Sloping
b)
Convex
c)
Negative Slope
d)
Positive Slope
5.
Fixed cost per unit increases when
a)
Volume of Production decreases
b)
Volume of Production increases
c)
Variable Cost Per Unit decreases
d)
None of these
6.
Variable Cost Per Unit
a)
Remains fixed
b)
Varies with the volume of production
c)
Varies with Sales
d)
None of these
7.
In Iso Cost, Iso means
a)
Indifferent
b)
Constant
c)
Different
d)
Equal
8.
Higher Isoquant =
a)
Lower Output
b)
Higher Input
c)
Higher Output
d)
Lower Input
9.
If a firm increases all of its inputs by 40% and its total output increases by 55%, the production function is exhibiting:
a)
Diminishing Marginal Returns.
b)
Constant Returns to Scale
c)
Decreasing Returns to Scale
d)
Increasing Returns to Scale
10.
Internal Economies of Scale arises
a)
Outside the Company
b)
Within the Company
c)
Outside the world
d)
Inside the world
11.
External Economies of Scale arises
a)
Outside the Company
b)
Within the Company
c)
Outside the world
d)
Inside the world
12.
In Iso Cost Curve, w stands for
a)
Worker
b)
Work
c)
Wages
d)
Waste
13.
In Iso Cost Curve, k stands for
a)
Kinesics
b)
Kaizen
c)
Capital
d)
None of these
14.
In Iso Cost Curve, l stands for
a)
labour
b)
land
c)
loss
d)
liquidity
15.
Which one of the following is NOT a sign of economic development?
a)
Changing structure of GDP in favour of industry
b)
Larger share of GDP coming from primary sector
c)
Larger capital inflows
d)
Institutional changes in an economy.
16.
Which of the following is an alternative way of representing the production function?
a)
long run
b)
Isoquant
c)
short run
d)
variable cost
17.
Which among the following is best described as opportunity cost?
a)
Difference between the return on chosen option and the return on best forgone option
b)
Difference between two chosen options
c)
Difference between the return this year and the previous year
d)
None of these
18.
What defines a market place in an economy?
a)
Place where profits are made
b)
Place where goods are made
c)
Place where people meet
d)
Place where buyers meet sellers
19.
Which among the following is related to utility?
a)
Satisfaction and wants
b)
Necessity and wants
c)
Usefulness and need
d)
None of these
20.
The ‘Law of Variable Proportion’ was first developed by
a)
Meyer
b)
Ricardo
c)
Mill
d)
Marshall
21.
The out of pocket costs are ________.
a)
Sunk costs
b)
Marginal costs
c)
Explicit costs
d)
Social costs
22.
The demand curve has a _____ slope.
a)
Undefined
b)
Zero c
c)
Negative
d)
Positive
23.
In Iso Quant, Quant means
a)
Capital
b)
Labour
c)
Input
d)
Output
24.
TP Stands for
a)
Total Product
b)
Total Productivity
c)
Term Price
d)
Total Price
25.
VC Stands for
a)
Variable Curve
b)
Venture Capital
c)
Variable Cost
d)
Variable Capital
26.
The total product starts to decline. Is called as
a)
Increasing Returns
b)
Negative Returns
c)
Constant Returns
d)
Diminishing Returns
27.
AP stands for
a)
Average Product
b)
Average Price
c)
Added Product
d)
Average Production
28.
MP stands for
a)
Marginal Production
b)
Marginal Price
c)
Marginal Product
d)
Marginal Productivity
29.
All inputs are variable in
a)
Constant Run
b)
Short Run
c)
Medium Run
d)
Long Run
30.
Monopolists are
a)
“price takers”
b)
"price makers"
c)
“price givers”
d)
“price followers”
31.
The product sold has no close substitutes under
a)
Oligopoly
b)
Duopoly
c)
Monopoly
d)
Oligopsony
32.
High barriers to entry happens with
a)
Monopoly
b)
Oligopsony
c)
Oligopoly
d)
None of these
33.
Two dominant firms occur in
a)
Oligopoly
b)
Duopoly
c)
Monopoly
d)
Oligopsony
34.
Example(s) of Duopoly is/are
a)
Boeing and Airbus
b)
Visa and Mastercard
c)
Apple and Samsung
d)
All of these
35.
Dominated by a small number of large firms is called
a)
Duopoly
b)
Monopoly
c)
Oligopoly
d)
Monopsony
36.
Free entry and exit happens in
a)
Imperfect Market
b)
Perfect Market
c)
Quasi Perfect Market
d)
Quasi Imperfect Market
37.
In perfect market, the firms are ___________.
a)
Price Takers
b)
Price Makers
c)
Price Runners
d)
Price Givers
38.
____________ is a single large buyer dominates the market.
a)
Duopoly
b)
Monopoly
c)
Oligopoly
d)
Monopsony
39.
In imperfect market, the firms are ___________.
a)
Price Takers
b)
Price Makers
c)
Price Runners
d)
Price Givers
40.
A single firm is the sole seller of a product with no close substitutes is called __________.
a)
Monopoly
b)
Oligopsony
c)
Oligopoly
d)
None of these
41.
In some regions, a single utility company controls the electricity supply.
a)
True
b)
False
42.
Opportunity cost is the benefit of the next best alternative that is foregone when making a decision.
a)
True
b)
False
43.
Scarcity means resources are abundant
a)
True
b)
False
44.
Economics is a social science
a)
True
b)
False
45.
Economics is the study of how evenly goods and services are distributed within society.
a)
True
b)
False
46.
Inflation increases the value of money
a)
True
b)
False
47.
Inflation increases the value of money
a)
True
b)
False
48.
A market economy cannot produce a socially desirable outcome because individuals aremotivated by their own selfish interests
a)
True
b)
False
49.
It is difficult for economists to make observations and develop theories, but it is easy foreconomists to run experiments to generate data to test their theories.
a)
True
b)
False
50.
Economic models can help us understand reality only when they include all details of the economy
a)
True
b)
False
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