introduction to micro economics section 1 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 8 EXERCISES
-
Top 500+ Micro Economics Introduction GK MCQ Quiz For SSC »
-
499+ Micro Economics Basic GK MCQ Quiz PDF For BANK Exams »
-
New Microeconomics Fundamental Concepts MCQ Quiz For UPSC »
-
499+ Micro Economics Key Concepts Basic GK MCQ Quiz PDF »
-
Top 500+ Indian Micro Economics Basic Concepts GK MCQ PDF »
-
New 500+ Macroeconomics Basic GK Questions & Answers PDF »
-
New 500+ Microeconomic Policies & Concepts Based MCQ PDF »
-
Top Microeconomics Questions And Answers MCQ PDF For IBPS »
The following question based on Introduction to Micro Economics topic of indian economy mcq
(a) Elasticity = $\text"% change in supply"/\text"% change in price"$
(b) Elasticity = $\text"% change in demand"/\text"% change in price"$
(c) Elasticity = $\text"% change in price"/\text"% change in demand"$
(d) Elasticity = $\text"% change in demand"/\text"% change in supply"$
The correct answers to the above question in:
Answer: (b)
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity, demanded of a good or service to a change in its price.
The formula for the coefficient of price elasticity of demand for a good is: $e_(R) = {{DQ}/Q}/{{dP}/P}$,
where $e_(R)$ = Elasticity of demand;
dQ/ Q= % change in demand and
dP/P= % change in price.
Discuss Form
Read more introduction to micro economics Based Indian Economy Questions and Answers
Question : 1
As the number of investments made by a firm increases, its internal rate of return
a) increases because the level of savings will fall.
b) declines due to diminishing marginal productivity.
c) declines because the market rate of interest will fall, ceteris paribus.
d) increases to compensate the firm for the current consumption foregone.
Answer »Answer: (d)
Internal rates of return are commonly used to evaluate the desirability of investments or projects. The higher a project's internal rate of return, the more desirable it is to undertake the project.
A firm (or individual), in theory, undertakes all projects or investments available with IRRs that exceed the cost of capital.
As the number of investments increases, its internal rate of return is greater than an established minimum acceptable rate of return or cost of capital.
Question : 2
The term utility means
a) None of these
b) usefulness of a commodity
c) the satisfaction which a commodity yields
d) the service which a commodity is capable of rendering
Answer »Answer: (c)
In economics, ‘Utility,’ refers to the total satisfaction received from consuming a good or service.
It is usually applied by economists in such constructs as the indifference curve, which plots the combination of commodities that an individual or a society would accept to maintain a given level of satisfaction.
Question : 3
“Economics is what it ought to be” - This statement refers to
a) Fiscal economics
b) Normative economics
c) Positive economics
d) Monetary economics
Answer »Answer: (b)
Normative economics (as opposed to positive economics) is that part of economics that expresses value judgments (normative judgments) about economic fairness or what the economy ought to be like or what goals of public policy ought to be.
It is the study or presentation of “what ought to be” rather than what actually is. Normative economics deals heavily with value judgments and theoretical scenarios.
An example of a normative economic statement would be, “We should cut taxes in half to increase disposable income levels”. By contrast, a positive (or objective) economic observation would be, “Big tax cuts would help many people, but government budget constraints make that option infeasible.”
Question : 4
Economies of Scale means reduction in
a) total cost of distribution
b) unit cost of production
c) unit cost of distribution
d) total cost of production
Answer »Answer: (b)
In microeconomics, economies of scale are the cost advantages that an enterprise obtains due to expansion.
“Economies of scale” is a long-run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.
Question : 5
Which one of the following is having elastic demand ?
a) Match boxes
b) Electricity
c) Medicines
d) Rice
Answer »Answer: (b)
In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. The demand for those goods having more than one use is said to be elastic.
Electricity can be used for a number of purposes like heating, lighting, cooking, cooling etc.
If the electricity bill increases people utilize electricity for certain important urgent purposes and if the bill falls people use electricity for a number of other unimportant uses. Thus the demand for electricity is elastic.
Question : 6
A ‘Market Economy’ is one which
a) All of these
b) is controlled by the Government
c) is free from the Government control
d) in influenced by international market forces
Answer »Answer: (c)
A market economy is an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country’s individual citizens and businesses.
There is little government intervention or central planning. The United States is the world’s premier market economy.
GET Introduction to Micro Economics PRACTICE TEST EXERCISES
introduction to micro economics section 1
introduction to micro economics section 2
introduction to micro economics section 3
introduction to micro economics section 4
introduction to micro economics section 5
introduction to micro economics section 6
introduction to micro economics section 7
introduction to micro economics section 8
Introduction to Micro Economics Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
Most Important Antonyms Vocabulary - IBPS Clerk Prelims 2024
Latest Antonyms multiple choice questions and answers with free PDFfor IBPS Clerk Prelims 2024. English Vocabulary practice exercise for all bank exam
Continue Reading »
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »