Basics Of Economics Set 4
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This set of Basics of Economics Multiple Choice Questions & Answers (MCQs) focuses on Basics Of Economics Set 4
Q1 | The horizontal supply curve parallel to quantity axis represents
- elastic supply
- inelastic supply
- perfectly elastic supply
- perfectly inelastic supply
Q2 | When output is zero, variable cost is --------
- maximum
- minimum
- infinity
- zero
Q3 | Change in quantity supplied of a product can result from
- changes in own price
- changes in cost of production
- change in technology
- change in price of related products
Q4 | At prices above the equilibrium price
- quantity supplied exceeds quantity demanded
- quantity demanded exceeds quantity supplied
- there is shortage
- all of the above is possible
Q5 | When MC cuts AC, AC is at its ------------
- maximum
- minimum
- zero
- negative
Q6 | Cost function relates cost to
- input
- output
- raw material
- machines
Q7 | An increase in market demand, supply remaining the same results in
- decrease in equilibrium price
- decrease in equilibrium quantity
- decrease in equilibrium price and increase in equilibrium quantity
- both equilibrium price and quantity rises
Q8 | There is no distinction between firm and industry in
- perfect competition
- monopoly
- monopolistic competition
- oligopoly
Q9 | A fall in the market demand, supply remaining the same results in
- increase in equilibrium price
- increase in equilibrium quantity
- increase in equilibrium price and decrease in equilibrium quantity
- both equilibrium price and quantity falls
Q10 | The cost of next best alternative is called
- marginal cost
- average cost
- opportunity cost
- direct cost
Q11 | When MC is greater than AC, AC
- rises
- falls
- maximum
- minimum
Q12 | There is ------- relationship between price and quantity supplied
- positive
- negative
- constant
- inverse
Q13 | Supply curve represents -------- relationship between quantity andprice
- direct
- inverse
- either direct or inverse
- none of the above
Q14 | National Income means:
- gnp at factor cost
- gnp at market price
- nnp at factor cost
- nnp at market price
Q15 | The difference between GDP and NDP equals:
- transfer payments
- net indirect taxes
- net factor income from abroad
- depreciation
Q16 | Which of the following is true?
- gnp + depreciation = nnp
- gnp = gdp + net factor income from abroad
- ndp = gnp minus net indirect taxes
- nnp = dgp minus depreciation
Q17 | NNP is equal to:
- gnp plus depreciation
- gnp minus depreciation
- gnp minus exports
- gnp plus exports
Q18 | Which of the following is not a method of national income estimation?
- matrix method
- income method
- expenditure method
- product method
Q19 | An accounting year in India is:
- calendar year
- academic year
- fiscal year
- none of these
Q20 | Increase in real National Income (NI) means increase in:
- ni at current prices
- ni at constant prices
- both
- none of these
Q21 | Net indirect taxes means:
- indirect taxes plus subsidies
- income minus taxes
- indirect taxes minus subsidies
- exports minus imports
Q22 | Net factor income from abroad shows the difference between:
- gdp and ndp
- nnp and ndp
- gnp and gdp
- gnp and nnp
Q23 | Per capita income is equal to:
- population/national income
- national income/population
- national income/gdp
- nnp/gnp
Q24 | National income in India is estimated by:
- rbi
- nsso
- cso
- world bank
Q25 | The first estimate of National income in India was done by:
- k.n. raj
- v.k.r.v. rao
- dadabai naoroji
- p.c. mahalanobis