MCQ on Economics
1-When the total Utility increases by the Consumption of a commodity, it is called
(A) Total utility
(B) Negative Marginal utility
(C) Zero Marginal Utility
(D) Positive Marginal Utility
2-There are ___ types of elasticity of demand.
(A) Three
(B) Four
(C) Five
(D) Six
3-The rate at which the customer is prepared to exchange goods X and Y is known as
(A) Indifference Curve
(B) Rate of Substitution
(C) Technical Substitution
(D) Marginal Rate of Substitution
4-Generally speaking, almost all consumers are
(A) Optimistics
(B) Marginalists
(C) Specimistics
(D) Rationalists
5-General equilibrium analysis stresses interdependence between
(A) Export and Import
(B) Production and Consumption
(C) Price and Output
(D) Demand and supply
6-‘IS’ curve explains the relationship between
(A) Real income and Rate of Investment
(B) Investment and Supply of Money
(C) Income and saving
(D) Saving and Investment
7-Disposable Income is equal to
(A) Investment Expenditure plus saving
(B) Interest plus interest
(C) Consumption plus Investment
(D) Consumption Expenditure plus Saving
8-The income received by the factors of production from the producing units is called
(A) Factor cost
(B) Factor income
(C) Gross value of output
(D) Factor price
9-Which one of the following is the basic feature of a market economy?
(A) Externalities
(B) Government ownership
(C) Freedom of enterprise
(D) Centralized planning
10-Money was invented because of
(A) The emergences of organized Government
(B) The inconveniences of barter system
(C) The emergence of banking system
(D) The reasoning power of people
11-‘Wall street’ is associated with
(A) New York Stock Exchange
(B) Mumbai Stock Exchange
(C) Sydney Stock Exchange
(D) London stock exchange
12-Goods whose quality can only be judged after using them are known as
(A) Producer goods
(B) Experience goods
(C) Search goods
(D) Consumer goods
ANSWERS:
1-(D), 2-(A), 3-(D), 4-(B), 5-(C), 6-(D), 7-(D), 8-(B), 9-(C), 10-(B), 11-(A), 12-(B)