Miscellaneous Economics MCQs

Option A: 10

Option B: 1

Option C: 9

Option D: 0.1

Correct Answer: 1 ✔

Option A: Lagging indicators

Option B: Flashing indicator

Option C: Coincidental indicators

Option D: Leading indicators

Correct Answer: Leading indicators ✔

Option A: Zero

Option B: Negative

Option C: Where the marginal social benefit = the marginal social cost

Option D: Total social costs are minimised

Correct Answer: Where the marginal social benefit = the marginal social cost ✔

Option A: the growth of the fastest economy in the world

Option B: The fastest growth an economy has ever achieved

Option C: The present rate of growth of an economy

Option D: The rate of growth that could be achieved if resources were fully employed

Correct Answer: the growth of the fastest economy in the world ✔

Option A: 40 units

Option B: 195 units

Option C: 1000 units

Option D: 200 units

Correct Answer: 40 units ✔

Option A: Unemployment is likely to fall

Option B: Prices are likely to fall

Option C: Demand is likely to fall

Option D: Imports are likely to grow

Correct Answer: Unemployment is likely to fall ✔

Option A: Investment

Option B: Savings

Option C: Taxation

Option D: Imports spending

Correct Answer: Taxation ✔

Option A: increasing injections

Option B: Reducing taxation rates

Option C: Reducing interest rates

Option D: Reducing government spending

Correct Answer: Reducing interest rates ✔

Option A: Assumed to be exogenous

Option B: Assumed to be a function of national income

Option C: Decrease aggregate demand

Option D: Decrease the investment into an economy

Correct Answer: Decrease the investment into an economy ✔

Option A: Reduce injections into the economy

Option B: Reduce national income

Option C: Move the economy away from full employment

Option D: Boost aggregate demand

Correct Answer: Move the economy away from full employment ✔

Option A: Decrease aggregate demand

Option B: Always equal savings

Option C: Always equal national income

Option D: include investment and export spending

Correct Answer: Always equal national income ✔

Option A: Financial audit

Option B: Balance sheet

Option C: Profit and loss account

Option D: Social audit

Correct Answer: Financial audit ✔

Option A: Selling another unit will increase total revenue

Option B: Selling another unit will increase profits

Option C: Selling another unit will increase costs

Option D: Selling another unit will increase average revenue

Correct Answer: Selling another unit will increase average revenue ✔

Option A: Marginal costs are maximized

Option B: Marginal costs are Minimized

Option C: Average costs are minimized

Option D: Average costs are maximized

Correct Answer: Marginal costs are maximized ✔

Option A: Total revenue equals total cost

Option B: There is the biggest positive difference between total revenue and total cost

Option C: There is the biggest negative difference between total revenue and total cost

Option D: Profits are Zero

Correct Answer: There is the biggest negative difference between total revenue and total cost ✔

Option A: Average revenue equals marginal cost

Option B: Average revenue equals average cost

Option C: Marginal revenue equals marginal cost

Option D: Average cost equals marginal cost

Correct Answer: Marginal revenue equals marginal cost ✔

Option A: Demand is upward sloping

Option B: Demand is price elastic

Option C: A price fall would increase revenue

Option D: Demand is price inelastic

Correct Answer: Demand is upward sloping ✔

Option A: Average revenue is greater than average variable cost

Option B: Average revenue is greater than average cost

Option C: Average revenue is greater than marginal revenue

Option D: Average revenue is greater than average fixed cost

Correct Answer: Average revenue is greater than marginal revenue ✔

Option A: Some products are produced that would not otherwise be produced

Option B: Producer surplus increases

Option C: Consumer surplus decreases

Option D: Firm’s profits increase

Correct Answer: Consumer surplus decreases ✔

Option A: The higher price in market A

Option B: The higher price in market B

Option C: The same Price in both markets

Option D: Cannot tell which price will be higher

Correct Answer: The same Price in both markets ✔

Option A: Charging different prices for different products

Option B: Charging the same prices for different products

Option C: Charging the same prices for same products

Option D: Charging different prices for the same products

Correct Answer: Charging the same prices for different products ✔

Option A: Total revenue – quantity

Option B: Total revenue / quantity sold

Option C: Total quantity sold quantity sold

Option D: Total revenue / total cost

Correct Answer: Total revenue / quantity sold ✔

Option A: Price plus quantity

Option B: Price multiplier by quantity sold

Option C: Price divided by the quantity sold

Option D: Price minus quantity sold

Correct Answer: Price divided by the quantity sold ✔

Option A: Profit

Option B: Profitability

Option C: Feasibility

Option D: Realism

Correct Answer: Realism ✔

Option A: Fixed costs

Option B: Variable costs

Option C: Total costs

Option D: Revenue

Correct Answer: Total costs ✔

Option A: The firm is making a loss and will shutdown in the short term

Option B: The firm is making a profile

Option C: The firm is making a loss but will continue to produce in the short term

Option D: The firm is making a loss and is making a negative contribution to fixed costs

Correct Answer: The firm is making a loss but will continue to produce in the short term ✔

Option A: The total product will fall

Option B: The average product will fall

Option C: Average variable cost will fall

Option D: Total revenue will fall

Correct Answer: The average product will fall ✔

Option A: Marginal cost is Rs20

Option B: Average cost falls

Option C: Variable cost rises by Rs100

Option D: Average fixed cost is Rs10

Correct Answer: Variable cost rises by Rs100 ✔

Option A: is derived from the average fixed costs

Option B: Converges with the average cost as output increases

Option C: Equals the total costs divided by the output

Option D: Equals revenue minus profits

Correct Answer: Converges with the average cost as output increases ✔

Option A: Total costs fall

Option B: Marginal costs increase

Option C: Average costs fall

Option D: Revenue falls

Correct Answer: Average costs fall ✔

Option A: The marginal product fall as more units of a variable factor are added to a fixed factor

Option B: Marginal utility falls as more unity of a product are consumed

Option C: The total product falls as more units of a variable factor are added to a fixed factor

Option D: The marginal product increases as more units of a variable factor are added to a fixed factor

Correct Answer: The marginal product fall as more units of a variable factor are added to a fixed factor ✔

Option A: If the marginal cost is greater than the average cost the average cost falls

Option B: If the marginal cost is greater than the average cost the average cost increase

Option C: If the marginal cost is positive total costs are miximised

Option D: If the marginal cost is negative total costs increase at a decreasing rate if output increases

Correct Answer: If the marginal cost is greater than the average cost the average cost increase ✔

Option A: Allocatively inefficient

Option B: X inefficient

Option C: Consumer inefficient

Option D: Productively inefficient

Correct Answer: Productively inefficient ✔

Option A: Demand

Option B: Land

Option C: Labour

Option D: Capital

Correct Answer: Demand ✔

Option A: 7As

Option B: 10As

Option C: 3As

Option D: 1A

Correct Answer: 3As ✔

Option A: An inward shift of the production possibility frontier

Option B: A movement along the production possibility frontier

Option C: An outward shift of the production possibility frontier

Option D: The pivoting of the production possibility frontier

Correct Answer: A movement along the production possibility frontier ✔

Option A: Everyone is wealthy

Option B: Resources are unemployed

Option C: More of one product can only be produced if less of another product is produced

Option D: The distribution of income is eqal

Correct Answer: More of one product can only be produced if less of another product is produced ✔