Human and Capital Resources, Economic Organizations, Market Equilibrium, Production and Return, Market and Revenue Curve MCQs

1 - When was the World Bank's Special Programme of Assistance (SPA) for indebted low income countries initiated?






December. 1987

2 - Which country is the OPEC's largest oil exporter?






Saudi Arabia

3 - When was the Organisation of Petroleum Exporting Countries (OPEC) formed to control the production and pricing of crude oil?






1960

4 - The headquarters of which of the following organisations are located at Vienna?






OPEC

5 - The International Air Transport Association (IATA) aims to promote safe, regular and economical air transport and to provide a forum for collaboration. When was its founded?






1945

6 - How many international airlines are active members of the IATA?






40

7 - Which of the following is not a member country of the G-7 (Group of Seven advanced industrial nations)?






USSR

8 - Which of the following organisations was brought into existence by the Treaty of Rome?






European Economic Community

9 - How many Regional Economic Commissions have been set up by the United Nations Economic and Social Council?






Five

10 - How many member-states are represented in the United Nations Economic and Social Council?






54

11 - In which year was the Asian Development Bank (ADB) set up following the recommendation of the United Nations Economic Commission for Asia and Far east?






1966

12 - When was the Asian Development Fund launched by the Asian Development Bank with a view to provide confessional credit to needy members?






1974

13 - Those who invest in joint stock companies are called:






Shareholders

14 - Limited liability is one of the advantages of:






Joint stock company

15 - He prepares the initial plan of the business:






Entrepreneur

16 - It is most suitable for large scale business:






Corporation

17 - A public limited company is run by:






Board of directors

18 - They can expand their business by selling shares in the stock market:






Joint stock company

19 - Reward of which factor of production is not pre-determined?






Organistion

20 - It is an example of public limited company:






WAPDA

21 - A public corporation comes into existence by means:






Act of Parliament

22 - If a public limited company issues bonds to increase resources, then it pays:






Fixed interrest to bond holders

23 - A decrease in demand causes the equilibrium price to:






Fall

24 - When price is below equilibrium level, there will be:






Shortage of commodity in the market

25 - If equilibrium price rises but equilibrium quantity remains unchanged, the cause is:






Supply decreases and demand increases

26 - Price of a product is determined in a free market:






By both demand and supply

27 - An increases in the price of mutton provides information which:






Tells producers to produce more mutton

28 - In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the rights. Then:






Price will rise

29 - Equilibrium:






Is an important idea for predicting economic changes

30 - Ten rupees is the equilibrium price for good X. If government fixes price at Rs. 5, there is:






A shortage

31 - A rise in supply and demand in equal proportion will result in:






No change in equilibrium price and increase in equilibrium quantity

32 - The price and sales of sugar both increase. What could be the cause of this?






An increase in the price of sugar substitutes

33 - Labour is hirable but you cannot hire:






Entrepreneur

34 - The three broad types of productive resources are:






Capital, labour and natural resources

35 - Land means:






All natural resources

36 - Economic development of a country requires:






(a) and (c) of above

37 - Productivity of land can be raised by:






Intensive cultivation

38 - Land :






(a) and (b) of above

39 - Which of the following is NOT and input:






Production

40 - Which of the following input factor takes risk innovtes and coordinates:






Entrepreneur

41 - Which of the following is correct with respect to resources:






Human skills are a labour input

42 - The transformation of resources into economic goods and series is called:






Production

43 - Economic goods produced by firms are called:






Output

44 - Land is:






Hirable

45 - Geographical mobility is not possible for:






Land

46 - The following is NOT a factor of production:






Money

47 - Which of the following factors takes risk, innovates and coordinates:






Entrepreneur

48 - The transformation of resources into economic goods and services is:






Output

49 - For production of goods we need factors:






Four

50 - Standard of living of a country can be raised if it increases:






Production

51 - Productivity of land can be raised by:






Intensive cultivation

52 - Natural environment that can be used for the production of goods and services is:






Natural resources

53 - An example of natural resources is:






Oil reserves in the ground

54 - Negative returns in the short run imply that:






Marginal is negative

55 - Economies of scale:






Suggest that the firm's marginal cost curve lies above its average cost curve

56 - In law of diminishing returns at least one factor:






Must be constant

57 - Economies of scale are of two kinds:






Internal and external

58 - Laws of return apply to firms working in:






All kinds of market situations

59 - During short period, diminishing returns may follow because:






Quantity of any one factor is fixed

60 - When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product (MP) of labour falls but the average product (AP) of labour rises. This can be explained by the factors that:






The additional workers are more efficient

61 - Which of the following is example of external economies of scale?






Technical progress leads to development of machines at low price

62 - The maximum point on TP curve is at quantity of labour where:






MPP of labour is zero

63 - When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product (MP) of labour falls but the average product (AP) of labour rises. This can be explained by the factors that:






The MP of labour is greater than AP of labour

64 - In an economy government constructed a new water reservoir for the purpose of irrigation; this might be taken as:






Increase in supply of capital

65 - Which of the following is one of the assumptions of perfect competition.






Many buyers and many sellers

66 - A firm under perfect competition is:






Price taker

67 - Which of the following markets comes closet to perfect market.






Wheat market

68 - This kind of market is undesirable:






Local market

69 - Which is a condition for existence of monopoly:






No close substitute

70 - In case of monopoly:






Marginal revenue is always less than average revenue

71 - In case of perfect competition in the market:






Marginal revenue is always equal to average revenue

72 - In the business world:






A firm working under perfect competition wants to become a monopoly

73 - Which is not true:






Every monopoly is evil

74 - The major difference between perfect competition and monopolistic competition is:






Differentiated product

75 - Marginal revenue is always less than price at all levels of output in:






Monopoly

76 - Which of the following is not a characteristic of perfect competition?






An individual firm can influence the price

77 - When marginal revenue is zero, total revenue:






Maximum

78 - Marginal revenue is always less than price at all levels of output in:






Monopoly

79 - Which of the following is not a characteristic of perfect competition?






An individual firm can influence the price

80 - In Monopoly at various output levels:






AR = MR

81 - Excise tax is a part of:






Variable cost

82 - The shape of rectangular hyperbola is made by:






AFC

83 - As output increases:






MC curve firstly falls then rises

84 - Unit cost is another name for:






ATC

85 - All inputs can be varied:






Long run

86 - Which statement is true:






AFC + AVC = ATC

87 - Which is NOT a cause of shift in cost curves of a firm:






Price of product

88 - MC is given by:






Slope of TC

89 - TC






Does not start from origin

90 - TVC






Starts from origin

91 - TC






Rises continuously

92 - All the following are U-shaped Except:






AFC

93 - The cost which a firm incurs for purchasing or hiring factors is called:






Explicit

94 - The short run:






Requires that at least one input is fixed

95 - The long run is a:






Period long enough to allow firms to change plant size and capacity

96 - As output increases, AC curve:






(a), (b), (c) are all correct

97 - The necessary condition for equilibrium position of a firm is:






MC = AC

98 - Profit is maximum when:






Distance between TR and TC is maximum

99 - Profit is maximum when:






Slope of TC and TR is the same

100 - Profit is maximum when:






TC and TR curves are parallel

101 - At the point of equilibrium of firm (under perfect competition):






MC curve must be rising

102 - Normal profit is:






Part of total cost

103 - Economic profit is:






Total revenue minus total cost

104 - A firm earns economic profit when total profit exceeds:






Normal profit

105 - The basic goal of a firm is to:






Maximize profit

106 - A firm's MR exceeds its MC, maximum profit rule requires that firm to:






Increase in output in both perfect and imperfect competition

107 - The basic goal of a firm is to:






Maximize profit

108 - A firm decides to exit the industry when:






Price is less than LAC

109 - Profit is maximum when:






TC and TR curves are parallel

110 - In monopoly and perfect competition the cost curves are:






Same

111 - Normal profit is called normal because:






It is minimum acceptable to the producer

112 - If a firm shuts down temporarily, it will incur loss equal to:






TFC

113 - Under perfect competition:






AR = MR

114 - The necessary condition for equilibrium position of a firm is:






MC = MR

115 - When a competitive firm achieves long run equilibrium then:






All of the above

116 - The most efficient scale of production of a firm is where:






LAC is minimum

117 - A firm should shut down in the short run if it is not covering its:






Variable cost

118 - Every factor of production gets reward equal to:






Value of average product

119 - Under perfect competition, demand for a factor is its:






MRP curve

120 - We should employ units of a factor to a point where:






MP is equal to price of the factor

121 - If marginal product of labour rises because of new technology:






Wages will rise

122 - One of the following is NOT a assumption of the marginal productivity theory:






Low price of factor

123 - Increasing the minimum wage for workers will:






Cause a substitution of capital for labour

124 - Union leaders are in a better position to bargain for higher wages if demand for labour is:






Inelastic

125 - Sometimes the supply curve of labour ends:






Backward

126 - In which form the largest percentage of national income is earned:






Employees' wages

127 - The minimum wage is an example of:






Price floor

128 - A firm maximizes profit if:






MRP = Wage rate

129 - Who is unemployed:






A freshly graduated engineer who is searching for a job

130 - Standard of living of workers depends upon their:






Real wages

131 - Doctors get higher wages than clerks because:






Doctors are in short supply

132 - Under Marginal productivity Theory, reward for labour is determined by:






Marginal product

133 - The economist Ricardo argued that prices were _____ because land rents were _______






High, Low

134 - As for the cost of production of an individual farmer, the rent paid by him:






Enters into the price of his product

135 - He presented a theory of rent:






Ricardo

136 - The following affect rent EXCEPT:






Cleverness of landlords

137 - These are kinds of rent EXCEPT:






Mobility rent

138 - This is capital:






Machinery

139 - According to Keynes interest is a payment for:






Liquidity preference

140 - Interest is paid because:






Capital is scarce

141 - With decrease in price of bonds, rate of interest:






Increases

142 - Every factor of production gets reward equal to its:






Marginal product

143 - According to Keynes, interest is a payment for:






Use of money

144 - In economics capital refers to:






Machinery and factories

145 - If rate of interest is 10% the PV (present value) of Rs. 100 received in 1 years time is:






9

146 - Professor Knight is famous for his theory of:






Profit

147 - Profits:






Are residual payment

148 - Profits:






All of the above

149 - Profits:






Are necessary

150 - Profits arise because an entrepreneur:






Both (a) and (b)

151 - Profits:






All of the above are true

152 - Gross profit does NOT include:






Taxes

153 - Some economists say that profit earner is a kind of:






Wage earner

154 - Risks in the business arise because of:






All the above

155 - According to Professor Knight risks are of _____ kinds:






2

156 - This is not a function of the entrepreneur:






Lend money

157 - Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. Do you know in which year was Francois Quesnay's Tableu Economique published?






1758

158 - Identify the author of "The Principles of Political Economy and Taxation":






David Ricardo

159 - Who is generally regarded as the founder of the "Classical School"?






Adam Smith

160 - Identify the economist who had little formal education and started working in the money market at an early age of fourteen.






David Ricardo

161 - "The labour of Nature is paid, not because she does much, but because she does little. In proportion as she becomes niggardly in her gifts, whe exacts a greater price for her work." Who made this observation?






Lauderdale

162 - Who first raised fears of a world food shortage?






T.R.Malthus

163 - When was Adam Smith's major work "An Enquiry into the Nature and Causes of Wealth of Nations" published?






1776

164 - "The real price of every thing, what every thing really costs to the man who wants to require it, is the toil and trouble of acquiring it. Who made this statement?






Adam Smith

165 - "Rent is a creation of value, not of wealth." Who made this observation?






David

166 - In which year was the first volume of Das Capital be Karl Marx published?






1867

167 - The Critique of Political Economy, the first fruits of Karl Marx's long painstaking research at the British Museum, appeared in:






1859

168 - The Communist Manifesto, written jointly by Marx and Engel's, was published in:






1848

169 - Who stated explicitly for the first tirr the law of comparative costs?






David Ricardo

170 - Identify the school founded by Wilhelm Roscher:






Historical School

171 - One of the following economists do not belong to the Austrian School. Identify him:






J.S. Mill

172 - Which one of the following theories of trade cycle was propounded by W.S. Jevons?






Sunspot Theory

173 - What was the nationality of Frederic List?






German

174 - "The Purchasing Power Parity Theory" came into prominence in 1916 through the writings of:






Gustav Cassel

175 - The input-output analysis owes its origin and development to:






W.W.Leontief

176 - Who wrote "An Introduction to Positive Economics"?






R.G.Lipsey

177 - Identify the author of "Mathematical Analysis for Economists:"






R.G.D.Alien

178 - Which of the following is not correctly matched?






R.F. Harrod: Income and Money

179 - Who among the following well-known economists graduated from the London School of Economics?






N.Kaldor

180 - "The Strategy of Economic Development" is the work of:






A.O.Hirshman

181 - Who is the author of "Problems of Capital Formation in Underdeveloped Countries"?






R. Nurkse

182 - Identify the work of Irving Fisher






The Making of Index Numbers

183 - Who wrote "There are no longer any believers in laissez-faire except on the lunatic fringe the truth is that we are all planners now"?






W.A.Lewis

184 - Who coined the phrase a temporary abode of purchasing power' while explaining the concept of money?






Milton Friedman

185 - Who developed the "Keynesian Theory of Distribution"?






N.Kaldor

186 - Identify the economist who propounded the "Liquidity Preference Theory of Interest":






J.M.Keynes

187 - Which one among the following does not match?






Jagdish Bhagwati - Princeton

188 - Which of the following is not the work of J.B. Clark?






Economics of Overhead Costs

189 - Identify the economist who propounded the "Time Preference Theory of Interest":






Bohm Bawerk

190 - Who developed the concept of "Representative Firm"?






Alfred Marshall

191 - Identify the work of T.Schultz:






Transforming Traditional Agriculture

192 - Which of the following does not match?






H.Myint: Economic Theory and Underdeveloped Regions

193 - Which of the following Alfred Marshall's works was first published?






The Pure theory of Foreign trade

194 - Who first used the term 'quasi-rent'?






Alfred Marshall

195 - How old was Alfred Marshall when he died?






82 years

196 - Among the following Noble Prize winners for Economics one is an Austrian economist. Identify him:






F.A. von Hayek

197 - Who used the term consumption capital for consumers goods?






Alfred Marshall

198 - Whose words are these? "We might as reasonable dispute whether it is the upper or the under blade of a pair of scissors that cuts a piece of paper as whether value is governed by utility or cost of production."






Alfred Marshall

199 - Who introduced the concept of "Elasticity of Demand into Economic Theory"?






Alfred Marshall

200 - Though the concept of consumers surplus can be traced back to the French engineer economist Dupuit, it was another economist who gave a precise formulation stating the necessary assumption of this concept. Identify the economist.






Alfred Marshall

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