Micro Economics 1 Set 13 MCQs

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.