introduction to micro economics section 6 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) No profit
(b) Super-normal profit
(c) Profits equal to other firms
(d) Normal profit
The correct answers to the above question in:
Answer: (d)
Making the assumption that the market demand curve remains unchanged, higher market supply will reduce the equilibrium market price until the price = long-run average cost.
At this point, each firm is making normal profits only. There is no further incentive for the movement of firms in and out of the industry and a long-run equilibrium has been established.
Discuss Form
Read more introduction to micro economics Based Indian Economy Questions and Answers
Question : 1
When the total product rises at an increasing rate, the
a) marginal product remains constant
b) marginal product is zero
c) marginal product is rising
d) marginal product is falling
Answer »Answer: (c)
The marginal product of an input (factor of production) is the extra output that can be produced by using one more unit of the input (for instance, the difference in output when a firm’s labour usage is increased from five to six units), assuming that the quantities of no other inputs to a production change.
Marginal product, which occasionally goes by the alias marginal physical product (MPP), is one of two measures derived from the total product. The other is an average product. Marginal product is directly proportional to total product.
Question : 2
If total utility is maximum at a point, then marginal utility is
a) positive but decreasing
b) positive
c) zero
d) negative
Answer »Answer: (c)
Marginal utility of a good or service is the gain (or loss) from an increase (or decrease) in the consumption of that good or service.
As the rate of commodity acquisition increases, marginal utility decreases. If commodity consumption continues to rise, marginal utility at some point falls to zero, reaching maximum total utility.
Further increase in consumption of units of commodities causes the marginal utility to become negative; this signifies dissatisfaction.
Question : 3
Who said, “Economics is the Science of Wealth” ?
a) Keynes
b) Robbins
c) J.S. Mill
d) Adam Smith
Answer »Answer: (d)
It was Adam Smith who conceptualized Economics as a science of wealth. Elaborating upon the scope and fundamental conceptualizations of the new science, he then called political economy as "an inquiry into the nature and causes of the wealth of nations.”
Question : 4
The internal rate of return
a) is equal to the market interest rate for all the firm’s investment.
b) must be less than the interest rate if the firm is to invest.
c) makes the present value of profits equal to the present value of costs.
d) falls as the annual yield of an investment rises.
Answer »Answer: (d)
The internal rate of return on an investment or project is the "annualized effective compounded return rate" or discount rate that makes the net present value of all cash flows (both positive and negative) from a particular investment equal to zero.
In more specific terms, the IRR of an investment is the interest rate at which the net present value of costs (negative cash flows) of the investment equals the net present value of the benefits (positive cash flows) of the investment.
Question : 5
When there is one buyer and many sellers then that situation is called
a) Double buyers right
b) Monopoly
c) Single buyer right
d) Down right
Answer »Answer: (c)
In economics, a monopsony (mono: single) is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers.
As the only purchaser of a good or service, the monopsonist may dictate terms to its suppliers in the same manner that a monopolist controls the market for its buyers.
It is also known as Single buyer Right. A single-payer universal health care system, in which the government is the only “buyer” of health care services, is an example of a monopsony. Another possible monopsony could develop in the exchange between the food industry and farmers.
Question : 6
Purchasing Power Parity theory is related with
a) Exchange rate
b) Interest rate
c) Bank rate
d) Wage rate
Answer »Answer: (a)
Purchasing power parity (PPP) is an economic theory and a technique used to determine the relative value of currencies, estimating the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to (or on par with) each currency’s purchasing power. It asks how much money would be needed to purchase the same goods and services in two countries, and uses that to calculate an implicit foreign exchange rate. Using that PPP rate, an amount of money thus has the same purchasing power in different countries.
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 »