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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.