Principles Of Micro Economics Set 6
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This set of Principles of Micro Economics Multiple Choice Questions & Answers (MCQs) focuses on Principles Of Micro Economics Set 6
Q1 | The Wealth of Nations is the work of:
- Marshall
- J.S. Mill
- Adam Smith
- Lionel Robins
Q2 | Indifference Approach is related with:
- Marshall
- J.R. Hicks
- Samuelson
- Sismondi
Q3 | Which one of the following is an example of close substitute:
- Tea and Coffee
- Milk and water
- Bread and Butter
- Pen and pencil
Q4 | The addition to the total revenue by the sale of an additional unit is:
- Total revenue
- Average revenue
- Value added
- Marginal revenue
Q5 | Which cost is to be incurred by a firm even if output is zero:
- Opportunity cost
- Fixed cost
- Variable Cost
- Total cost
Q6 | The marginal utility theory is contributed by:
- Marshall
- David Ricardo
- Adam Smith
- Samuelson
Q7 | The factor earning of entrepreneur is:
- Rent
- Wage
- Interest
- Profit
Q8 | The Scarcity definition of Economics is the contribution of:
- Samuelson
- Adam Smith
- Lionel Robbins
- Marshall
Q9 | Average Revenue is equal to:
- Price
- Cost
- Profit
- None of these
Q10 | Total Revenue is the maximum when Marginal Revenue is ----------
- Positive
- Negative
- One
- Zero
Q11 | Market economy is also known as:
- Socialist economy
- Capitalist economy
- Mixed economy
- Developing economy
Q12 | For complementary goods, the cross elasticity of demand:
- Positive
- Negative
- Zero
- None
Q13 | Relation between price of a commodity and demand for another commodity ismeasured by:
- Price elasticity
- Income elasticity
- Cross elasticity
- Elasticity of substitution
Q14 | The demand curve for Giffen’s goods:
- Vertical
- Horizontal
- Negative slope
- Positive slope
Q15 | When Q = f (P), the elasticity coefficient is measured by:
- ΔQ/ΔP / P/Q
- ΔP/ΔQ * Q/P
- ΔQ/ΔP * P/Q
- P/ΔQ / Q/P
Q16 | Income elasticity of demand for inferior goods is:
- Negative
- Positive
- Zero
- Unity
Q17 | In the case of luxury goods, the income elasticity of demand will be:
- Less than unity
- Unity
- More than unity
- All the above
Q18 | Income elasticity is positive, but less than unity in the case of:
- Necessity
- Luxury
- Inferior
- Substitutes
Q19 | The change in demand is due to the change in :
- Income
- Own price
- Prices of related products
- Expectations
Q20 | Supply curve represents -------- relationship between quantity and price
- Direct
- Inverse
- Either direct or inverse
- None of the above
Q21 | A market:
- Necessarily refers to a meeting place between buyer and sellers
- Does not necessarily refers to a meeting place between buyer and sellers
- Extends over the entire country
- Extends over a city
Q22 | The market equilibrium for a commodity is determined by:
- Market demand
- Market supply
- Balancing of the forces of demand and supply
- Any of the above
Q23 | A fall in the price of the commodity holding everything else constant resultsin:
- Increase in demand
- Decrease in demand
- Increase in quantity demanded
- Decrease in quantity demanded
Q24 | When the price of the substitute commodity of X falls, the demand for X:
- Rises
- Falls
- Remains unchanged
- All of the above is possible
Q25 | If the income elasticity of demand is greater than one, then the commodity is:
- Necessity
- Luxury
- Inferior
- Non-related commodity