introduction to micro economics section 2 Practice Questions Answers Test with Solutions & More Shortcuts
Introduction to Micro Economics PRACTICE TEST [8 - 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
Question : 1 [SSC HSLDEO 2010]
Demand curve of a firm under perfect competition is :
a) U – shaped
b) horizontal to ox-axis
c) negatively sloped
d) positively sloped
Answer »Answer: (b)
Under Perfect Competition, the firm faces a horizontal demand curve. It can sell any quantity desired at the market price, but cannot sell anything above the market price.
Question : 2 [SSC CGL 2015]
From the national point of view, which of the following indicates micro approach?
a) Inflation in India
b) Study of sales of mobile phones by BSNL
c) Unemployement among Women
d) Per capita income in India
Answer »Answer: (b)
Macroeconomics is a branch of economics in which a variety of economy-wide phenomena is thoroughly examined such as, inflation, price levels, rate of growth, national income, gross domestic product and changes in unemployment.
On the other hand, Microeconomics studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
So the study of sales of mobile phones by BSNL comes under microeconomics.
Question : 3 [SSC FCI AG 2012]
In a perfectly competitive market, a firm’s
a) Marginal Revenue and Average Revenue are never equal
b) Average Revenue is always equal to Marginal Revenue
c) Marginal Revenue is more than Average Revenue
d) Average Revenue is more than Marginal Revenue
Answer »Answer: (b)
Average revenue is the amount of money received by a firm per unit of output sold. Marginal revenue is the change in total revenue resulting from a small change in the quantity sold.
In a perfectly competitive market, a firm’s Average Revenue is always equal to Marginal Revenue.
Question : 4 [SSC CGL 2015]
Bilateral monopoly situation is
a) when there are two buyers and two sellers of a product
b) when there are only two sellers of a product
c) when there are only two buyers of a product
d) when there is only one buyer and one seller of a product
Answer »Answer: (d)
A bilateral monopoly is a market consisting of a single seller (monopolist) and a single buyer (monopsonist).
For example, if a single firm produced all the copper in a country and if only one firm used this metal, the copper market would be a bilateral monopoly market.
The equilibrium in such a market cannot be determined by the traditional tools of demand and supply.
Question : 5 [SSC CML 2000]
If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for
a) Coke and 7-Up will decrease
b) Coke will decrease
c) 7-Up will decrease
d) Coke and 7-Up will increase
Answer »Answer: (a)
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.
A decrease in the price of a good normally results in an increase in the quantity demanded by consumers because of the law of demand, and conversely, quantity demanded decreases when the price rises.
So, here the decrease in the price of Pepsi will increase in demand for it, while the demand for Coke and 7-Up will decrease because of no change in their price level.
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Introduction to Micro Economics Shortcuts »
Click to Read...introduction to micro economics section 2 Online Quiz
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
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