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This set of Micro Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 1 Set 13
Q1 | The book ‘Principles of Economics’ was written by:
- Keynes
- Marshall
- Samuelson
- Pigou
Q2 | Average revenue is :
- TR - TC
- TR / No. of units sold
- TC / TR
- MC / AR
Q3 | A hypothesis is a :
- Statement of facts
- Statement of observations made by a researcher
- Statement of expected out of research
- A proposition the validity of which is to be tested
Q4 | In the classical system, the basic economic problems are solved by:
- Government
- Price mechanism
- Economists
- Central bank
Q5 | Growth definition of economics was concerned with:
- Scarcity
- Welfare
- Wealth
- Economic growth
Q6 | A market:
- Necessarily refers to a meeting place between buyers and sellers
- Does not necessarily refer to a meeting place between buyers and sellers
- Extends over the entire nation
- Extends over a city.
Q7 | The average fixed cost is obtained by :
- TFC / Q
- MC / Q
- TAC / Q
- AVC / Q
Q8 | Average Revenue curve under monopoly is :
- Upward slopping
- Downward slopping
- Horizontal straight line
- None of these
Q9 | _______ investigations examine an individual’s relationship with and interaction in society
- Natural science
- Physical science
- Life science
- Social science
Q10 | In the 19th century _________ argued that ideas pass through three rising stages namely, Theological, Philosophical and Scientific.
- Auguste Comte
- B. Plato
- Aristotle
- Socrates
Q11 | _________ is distinctive for much greater use of mathematics than the other social sciences, a development made possible by the development of a concept of utility
- Sociology
- Political science
- Economics
- Anthropology
Q12 | The most important founder of German sociology, __________ , was keenly interested in maintaining the relationship between economics and sociology.
- Max Adler
- Max Weber
- Karl Marx
- Joseph W. Eaton
Q13 | International Social Science Associations were founded under the auspices of___________
- UNESCO
- World Bank
- IMF
- USA
Q14 | ________ social science discipline deals with the integration of different aspects of the Social Sciences, Humanities, and Human Biology
- Criminology
- Demography
- Geography
- Anthropology
Q15 | Mannheim defines ________as the sum of those methods by which a society tries to influence human behavior to maintain a given order.
- Social control
- Constitution
- Policing
- Democracy
Q16 | Implicit costs are:
- Equal to total fixed costs.
- Comprised entirely of variable costs.
- Payments" for self-employed resources.
- Always greater in the short run than in the long run.
Q17 | Which would be an implicit cost for a firm? The cost:
- Of worker wages and salaries for the firm.
- Paid for leasing a building for the firm.
- Paid for production supplies for the firm.
- Of wages foregone by the owner of the firm.
Q18 | If a firm's revenues just cover all its opportunity costs, then:
- Normal profit is zero.
- Economic profit is zero.
- Total revenues equal its explicit costs.
- Total revenues equal its implicit costs.
Q19 | Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?
- The firm will earn accounting and economic profits.
- The firm will face accounting and economic losses.
- The firm will face an accounting loss, but earn economic profits.
- The firm may earn accounting profits, but will face economic losses.
Q20 | The short run is a time period in which:
- All resources are fixed.
- The level of output is fixed.
- The size of the production plant is variable.
- Some resources are fixed and others are variable.
Q21 | When the total product curve is falling, the:
- Marginal product of labor is zero.
- Marginal product of labor is negative.
- Average product of labor is increasing.
- Average product of labor must be negative
Q22 | When marginal product reaches its maximum, what can be said of total product?
- Total product must be at its maximum
- Total product starts to decline even if marginal product is positive
- Total product is increasing if marginal product is still positive
- Total product levels off
Q23 | Variable costs are:
- Sunk costs.
- Multiplied by fixed costs.
- Costs that change with the level of production.
- Defined as the change in total cost resulting from the production of an
Q24 | Which is not a fixed cost?
- Monthly rent of Rs. 1,000 contractually specified in a one-year lease
- An insurance premium of Rs. 50 per year, paid last month
- An attorney\s retainer of Rs. 50,000 per year
- A worker\s wage of Rs. 15 per hour
Q25 | If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:
- Rs. 93.75.
- Rs. 97.78.
- Rs. 750.
- Rs. 880.