Economics Objective Questions and Answers

701. Using Gabriel's budget line, and his indifference curves between horseback riding lesson and baseball lessons, and then changing of each activity holding his income constant, which of the following can be derived?

702. If the market demand curve for a commodity has a negative slope, then the market structure must be

A. Perfect competition

B. Monopoly

C. Imperfect competition

D. The market structure cannot be determined from the given information

Discussion

703. Individual demand schedule shows

A. tabular presentation of law of demand

B. the prices of goods

C. the quantities of a commodity purchased

D. All of the above

Discussion

704. A factor of production, whose supply is fixed in the short tun, may get additional earnings. These earnings are generally referred to as

A. Surplus value

B. Quasi-rent

C. Transfer earnings

D. Super normal profits

Discussion

705. If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is

706. Which of the following is the best general definition of the study of economics?

A. Inflation and employment in a growing economy

B. The best way to invest in the stock market

C. Business decision-making under foreign competition

D. Individual and social choice in the face of scarcity

Discussion

707. Under perfect competition, a firm will be in equilibrium, when its AC is

A. at minimum level

B. equal to AR

C. covering only prime cost of production

D. None of the above

Discussion

Economics MCQs