introduction to micro economics section 5 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) what it can earn in some other use.
(b) what it is earning in its present use.
(c) what it can earn in the long period.
(d) what has to be paid to retain it in its present use.
The correct answers to the above question in:
Answer: (a)
The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.
It is equivalent to what a factor could earn for the firm in alternative uses.
Discuss Form
Read more introduction to micro economics Based Indian Economy Questions and Answers
Question : 1
Wage fund theory was propounded by
a) J.M. Keynes
b) J.B. Say
c) J.S. Mill
d) J.R. Hicks
Answer »Answer: (c)
J.S. Mill developed the wages-fund theory. This theory of wage was an attempt to show that in certain circumstances wages could rise above subsistence level.
According to this theory, a fund of capital has to be accumulated in advance before wages could be paid. This fund of capital is called wages-fund out of which wages are paid to labourers.
Question : 2
Production function expresses
a) relationship between factors of production
b) technological relationship between physical inputs and output
c) financial relationship between physical inputs and output
d) relationship between finance and technology
Answer »Answer: (b)
Production involves the transformation of inputs into outputs. The output is a function of the input. The functional relationship between physical inputs and the physical output of a firm is called the production function. The word ‘function’ in mathematics means the precise relationship that exists between one dependent variable and a number (or one) of independent variables.
The production function states the maximum quantity of output that can be produced from any given quantity of various inputs during a given period of time.
Question : 3
The marginal propensity to consume lies between
a) ∞ to ∞
b) 0 to 1
c) 0 to ∞
d) 1 to ∞
Answer »Answer: (b)
The Marginal Propensity to Consume (MPC) is measured as the ratio of the change in consumption to the change in income, thus giving us a figure between 0 and 1.
The MPC can be more than one if the subject borrowed money to finance expenditures higher than their income. One minus the MPC equals the marginal propensity to save.
Question : 4
If an industry is characterised by economies of scale then
a) the costs of entry into the market are likely to be substantial
b) barriers to entry are not very large
c) long run unit costs of production decreases as the quantity the firm produces increases
d) capital requirement are small due to the efficiency of the large scale operation
Answer »Answer: (c)
In microeconomics, economies of scale are the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased.
“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
According to modern thinking, the law of diminishing returns applies to
a) all fields of production
b) agriculture
c) industry
d) mining
Answer »Answer: (a)
The law of diminishing returns (also the law of diminishing marginal returns or law of increasing relative cost) states that in all productive processes, adding more of one factor of production, while holding all others constant (“ceteris paribus”), will at some point yield lower per-unit returns.
The law of diminishing returns does not imply that adding more of a factor will decrease the total production, a condition known as negative returns, though in fact, this is common.
Question : 6
Elasticity (e) expressed by the formula l > e > 0 is
a) Relatively inelastic
b) Perfectly elastic
c) Relatively elastic
d) Perfectly inelastic
Answer »Answer: (a)
Elasticity (e) expressed by the formula 1 > e > 0 is relatively inelastic. Elasticity is responsiveness of one variable to a change in another, when other conditions are held constant.
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 »