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) two
(b) few
(c) large
(d) one
The correct answers to the above question in:
Answer: (d)
Monopoly refers to a market in which there is only one supplier and no other firms are able to enter.
Discuss Form
Read more introduction to micro economics Based Indian Economy Questions and Answers
Question : 1
According to Modern Theory of Rent, rent accrues to
a) land only
b) capital only
c) any factor
d) labour only
Answer »Answer: (c)
The modern theory of rent does not confine itself to the reward of the only land as a factor of production as was the case in the classical Ricardian theory of rent.
Rent in the modern sense can arise in respect of any other factor of production, i.e., labour, capital and entrepreneurship.
Question : 2
Total fixed cost curve is
a) Negatively sloping
b) Vertical
c) Horizontal
d) Positively Sloping
Answer »Answer: (c)
The Total Fixed Cost Curve is a curve that graphically represents the relation between the total fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced.
This curve is constructed to capture the relation between total fixed cost and the level of output, holding other variables, like technology and resource prices, constant.
Because total fixed costs are in fact, fixed, the total fixed cost curve is, in fact, a horizontal line.
Question : 3
The basic object of all production is to
a) increase physical output
b) satisfy human wants
c) provide employment
d) make profits
Answer »Answer: (b)
According to Adam Smith, consumption is the sole end and purpose of all production. The goal of production is the satisfaction of human desire.
All the processes, by which human labour creates goods and services, bring them to the ultimate consumer.
Question : 4
Demand of commodity mainly depends upon–
a) Advertisement
b) Purchasing will
c) Purchasing power
d) Tax policy
Answer »Answer: (c)
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon a number of factors called Determinants.
The demand function can be symbolically expressed as:
QdN = f (PN, PR, I, T, E, O)
Where QdN = Quantity demanded the commodity;
PN = Price of the commodity;
PR = Price of the related commodity;
I = Income of consumers;
T = Taste & Preferences of the consumers;
E = Expectations about the future prices; and O= other factors.
Question : 5
Consumer gets maximum satisfaction at the point where
a) Marginal Cost = Price
b) Marginal Utility = Price
c) Marginal Utility > Price
d) Marginal Utility < Price
Answer »Answer: (b)
As per the law of diminishing marginal utility, the utility of each successive unit goes on diminishing as more and more units of a commodity are consumed.
A rational consumer will consume the commodity up to a point where the marginal utility of the final unit of the commodity is equal to the marginal utility of money (in terms of price) paid for it. In this way, the consumer will get maximum satisfaction and will be in equilibrium.
Question : 6
If a good has negative income elasticity and positive price elasticity of demand, it is a
a) an inferior good
b) giffen good
c) normal good
d) superior good
Answer »Answer: (b)
Negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has a positive price elasticity of demand.
It is a good which people paradoxically consume more of as the price rises, violating the law of demand.
When the price goes up, the quantity demanded also goes up.
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
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 »
Mensuration Aptitude Practice Mcq Questions IBPS Clerk 2024
Most Important Practice Mensuration aptitude multiple choice questions, answers with detailed solutions, PDF beginner to advanced for IBPS Clerk Prelims 2024
Continue Reading »