introduction to micro economics section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11 [SSC SO 2005]

The fixed cost on such factors of production which are neither hired nor bought by the firm is called

a) surcharged cost

b) social cost

c) opportunity cost

d) economic cost

Answer: (b)

Social cost is defined as a sum of the private cost and external costs. The social cost is generally not borne by an individual. It may be borne by the entire society, city or even country.

This is not a one-time cost like a private cost. This cost is recurrent and it is very difficult to calculate due to the inclusion of external costs.

The cost may result from an event, action, or policy change. Social costs are not calculated whenever a seller sells any product or item to the buyer. This cost is added up from the use of that product.

Question : 12 [SSC CPO 2004]

Equilibrium price means

a) Price determined to maximise profit

b) Price determined by demand and supply

c) Price determined by Cost and Profit

d) Price determined by Cost of production

Answer: (b)

The equilibrium price is a state in an economy where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and that the market is in a state of equilibrium.

In short, it is the market price at which the supply of an item equals the quantity demanded.

Question : 13 [SSC CML 2001]

Division of labour is the result of

a) specialisation

b) Complicated work

c) excessive pressure

d) excess supply of labour

Answer: (a)

Division of Labor is the “specialization” of cooperative labour in specific, circumscribed tasks and like roles.

It is a process whereby the production process is broken down into a sequence of stages and workers are assigned to particular stages.

Question : 14 [SSC CGL 2015]

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: (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.

Question : 15 [SSC DEO & LCD 2011]

Which one of the following is having elastic demand ?

a) Match boxes

b) Electricity

c) Medicines

d) Rice

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.

IMPORTANT indian economy mcq EXERCISES

Introduction to Micro Economics Shortcuts »

Click to Read...

introduction to micro economics section 1 Online Quiz

Click to Start..
1245 micro economics based indian economy MCQ section 1 question answer with explanation pdf

Recently Added Subject & Categories For All Competitive Exams

Classification MCQ Test: IBPS RRB PO 2024 Scale-1 Prelims

Free 150+ Classification Verbal Reasoning Multiple choice questions and answers practice test series PDF, Free Quiz For IBPS RRB PO Officer Scale 1 Level 2024

28-Mar-2024 by Careericons

Continue Reading »

100+ Analogy Verbal Questions Answers PDF For IBPS RRB PO

Most Important Analogy Verbal Reasoning Multiple choice questions and answers practice test series PDF & Free Quiz For IBPS RRB PO Officer Scale 1 Level 2024

27-Mar-2024 by Careericons

Continue Reading »

IBPS RRB Clerk 2024 Seating Arrangement Questions Answers

Seating Arrangement: Verbal Reasoning Practice multiple choice questions and answers test & Quiz PDF for IBPS RRB (Assistant Multipurpose) Clerk Prelims 2024

26-Mar-2024 by Careericons

Continue Reading »

Top Aptitude Time & Distance Questions PDF: IBPS RRB Clerk

Important Aptitude Time and Distance multiple choice questions answers practice test PDF for IBPS RRB Clerk (Office Assistant Multipurpose) Prelims 2024 Exam

25-Mar-2024 by Careericons

Continue Reading »