introduction to micro economics section 3 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 CML 2001]
The problem of Economics arises from
a) All of the above
b) Plenty
c) Scarcity of goods
d) More wants and less goods
Answer »Answer: (d)
The theory of Economic problems states that there is scarcity, or that the finite resources available are insufficient to satisfy all human wants and needs.
The problem then becomes how to determine what is to be produced and how the factors of production (such as capital and labour) are to be allocated.
In short, the economic problem is the choice one must make, arising out of limited means and unlimited wants.
Question : 2 [SSC CAPFs 2014]
Any factor of production can earn economic-rent, when its supply will be
a) All of the above
b) Perfectly elastic
c) Perfectly inelastic
d) Elastic in nature
Answer »Answer: (c)
Economic rent is the revenue that can be earned from the land or other natural resource for which there is a fixed supply — as economists like to say, the supply is perfectly inelastic.
Because the supply is perfectly inelastic, the amount of its supply does not depend on any income that the resource can produce.
Question : 3 [SSC MTS 2013]
Demand in Economics means :
a) Demand backed by purchasing power
b) Aggregate demand
c) Market demand
d) Individual demand
Answer »Answer: (a)
‘ Demand ’ in Economics refers to the quantity of a good or service consumers ate able and willing to buy at a given price in a given market during a specified time period , other things beings equal.
Question : 4 [SSC CPO 2008]
When average cost production (AC) falls, marginal cost of production must be.
a) Less than the average cost
b) rising
c) Falling
d) Greater than the average cost
Answer »Answer: (a)
The average cost is the total cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing one more unit of output.
Economies of scale are said to exist if an additional unit of output can be produced for less than the average of all previous units— that is, if long-run marginal cost is below long-run average cost, so the latter is falling.
Conversely, there may be levels of production where marginal cost is higher than average cost, and the average cost is an increasing function of output.
Question : 5 [SSC CHSL 2014]
Which of the following occurs when labour productivity rises ?
a) The labour demand curve shifts to the right
b) The equilibrium nominal wage falls.
c) The equilibrium quantity of labour falls.
d) Competitive firms will be induced to use more capital
Answer »Answer: (a)
As labour productivity increases, the production function shifts up and simultaneously the labour demand curve shifts out and right. At a given real wage, more workers are hired and output increases.
Similarly, as the capital stock increases, the production function shifts up and simultaneously the labour demand curve shifts out and right.
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Introduction to Micro Economics Shortcuts »
Click to Read...introduction to micro economics section 3 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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