MCQ on Economics

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)