Question 1

0 out of 1 points

What is meant by economics?

Selected
Answer:
The study of the total output of a nation and the way that nation allocates its
limited resources.

Question 2
0 out of 1 points

________ market is based on law of supply and demand and prices of goods and services.

Selected Answer: competitive

Question 3
1 out of 1 points

What are the two basic concepts of economics?

Selected Answer:
Production possibility frontier and opportunity cost

Question 4
1 out of 1 points

What is the meaning of a market economy?

Selected
Answer:
A type of economic system in which the trading and exchange of goods and
services and information takes place in a free market.

Question 5
1 out of 1 points

"In Command Economy, government can utilise land, labour and capital to fulfil its political
and economic agenda."

Selected Answer: True

Question 6
1 out of 1 points

What is the meaning of opportunity cost?

Selected Answer:
The value of what is given up in order to have something else.

Question 7
1 out of 1 points

Opportunity cost is similar for each individual and nation.

Selected Answer: False

Question 8
0 out of 1 points

Which of the following is not a scarce resource for individual?

Selected Answer:
Skill

Question 9
0 out of 1 points

Which of the following is not a scarce resource for a country?

Selected Answer:
Labour force

Question 10
1 out of 1 points

Each individual and nation will have same set of values and due to same level of scarce
resources; their decision on utilisation of those resources is also same.

Selected Answer: False

Question 11
0 out of 1 points

"Producers decide which goods are to be produced in what quantity, depending on _______
demand."

Selected Answer: greater

Question 12
0 out of 1 points

A _____ good is one which people consume more as price rises.

Selected Answer: quality

Question 13
0 out of 1 points

"In price ceiling, the consumers can afford some essential goods or services that they could
not afford at the ___________ price."

Selected Answer: high

Question 14
0 out of 1 points

"In Perfectly Inelastic Demand ,the entire tax portion is absorbed by the _____________."

Selected Answer: suppliers

Question 15
0 out of 1 points

"If the price of a product is unfairly high, the government can set a price floor."

Selected Answer: True

Question 16
0 out of 1 points

The change in demand is less in comparison to change in price in inelastic demand.

Selected Answer: False

Question 17
1 out of 1 points

Equilibrium is a price where there is no surplus and deficit of goods.

Selected Answer: True

Question 18
0 out of 1 points

In Perfectly Elastic Demand who will be responsible to pay tax?

Selected Answer:
Buyer

Question 19
0 out of 1 points

Which concept is applicable for higher price?

Selected Answer:
Price demand

Question 20
1 out of 1 points

What is the rate of quantity demanded due to price change called?

Selected Answer:
Price elasticity of demand

Question 21
1 out of 1 points

Which of the following two approaches are used in utility theory?

Selected Answer:
Cardinal and Ordinal approach

Question 22
1 out of 1 points

Match the following.

Question Selected Match
Average Product curve rises with the rise in
D.
Marginal Product curve
The amount by which output rises with addition of one extra unit
of a variable factor
B.
Marginal Product of
Labour
The relationship between production factor and output
A.
Production Function
Ratio of output to the number of units of labour
C.
Average Product of
Labour


Question 23
1 out of 1 points

"What will be the total utility , if a person consumes five units of commodity and derives U1,
U2, U3, U4 and U5 utility from the successive units of goods?"

Selected Answer:
U1 + U2 + U3 + U4 + U5

Question 24
1 out of 1 points

What is the additional satisfaction or amount of utility gained from each extra unit of
consumption called?

Selected Answer:
Marginal Utility

Question 25
0 out of 1 points

The _______ product curve rises with the rise in Marginal Product curve.

Selected Answer: marginal

Question 26
1 out of 1 points

PPF stands for Production Possibility Frontier.

Selected Answer: True

Question 27
1 out of 1 points

The slope of total ______ curve for labour is equal to change in output (?Q) divided by
change in units of labour (?L).

Selected Answer: product

Question 28
0 out of 1 points

The marginal utility comes to ______ when the total utility is maximum.

Selected Answer: fall

Question 29
1 out of 1 points

"Which of the following is an abstract concept rather than a concrete, observable quantity?"

Selected Answer:
Utility Theory

Question 30
0 out of 1 points

"Consumption of more amounts of goods and services up to certain extent is acceptable,
beyond which a saturation point will be reached, which may reduce the total _________."

Selected Answer: product

Question 31
1 out of 1 points

Firms use ______________ factor to produce products.

Selected Answer: production

Question 32
0 out of 1 points

Period of time where at least one factor of production or variable is fixed is called _______
run.

Selected Answer: long

Question 33
1 out of 1 points

The relationship between production factor and output is called _______________function.

Selected Answer: production

Question 34
1 out of 1 points

"_______ is an abstract concept rather than a concrete, observable quantity."

Selected Answer: utility

Question 35
0 out of 1 points

Which is the ratio of output to the number of units of labour?

Selected Answer:
Marginal Product of Labour

Question 36
1 out of 1 points

Marginal product curve declines and reaches zero when the total product curve achieves

________value.
Selected Answer: maximum

Question 37
0 out of 1 points

"When marginal product is ________ average product, then the average product is rising."

Selected Answer: less than

Question 38
0 out of 1 points

When the total product curve moves downward the marginal product curve becomes
__________.

Selected Answer: steeper

Question 39
1 out of 1 points

Total product _____ shows the quantity of outputs can be obtained from different amount of
variable factor of production.

Selected Answer: curve



Question 1
1 out of 1 points

The cost associated with the use of variable factors is called __________ cost.

Selected Answer: variable

Question 2
0 out of 1 points

"Cost including material, manpower, semi finished goods and so on is called ___________
cost."

Selected Answer: fixed

Question 3
1 out of 1 points

Salary of top management is a type of ____________ cost.

Selected Answer: fixed

Question 4
1 out of 1 points

"Which of the following is incurred by company irrespective of the level of production, as it is
fixed in nature?"

Selected Answer:
Fixed cost

Question 5
0 out of 1 points

Production Process of any firm is associated with _______.

Selected Answer: total cost

Question 6
1 out of 1 points

What is the Total Cost (TC) of any firm a summation of?

Selected Answer:
Total Fixed and Total Variable cost

Question 7
1 out of 1 points

Which of the following shows the additional cost of each addition unit of output a firm
produces?

Selected Answer:
Marginal cost

Question 8
0 out of 1 points

Which of the following plays an important role for evaluation of occurrence of cost in the
firm?

Selected Answer:
Average total cost

Question 9
0 out of 1 points

What is the Average Total Cost (ATC) a summation of?

Selected Answer:
Fixed Cost and Variable Cost

Question 10
0 out of 1 points

A firm experiences economies of scale when long-run average cost declines as the firm
expands _______.

Selected Answer: short run average cost curves

Question 11
1 out of 1 points

Which of the following is very commonly used in a perfect competition market?

Selected Answer:
Price taker

Question 12
1 out of 1 points

__________ firm is entirely opposite to the perfect competition firm and has no rivals as it is
the only firm in its industry.

Selected Answer: monopoly

Question 13
1 out of 1 points

"In short run, a perfectly competitive firm will continue its quantity of output, till the point of
its marginal revenue equals marginal cost."

Selected Answer: True

Question 14
1 out of 1 points

"Distribution of natural gas, water and electricity are examples of which of the following?"

Selected Answer:
Natural monopoly

Question 15
0 out of 1 points

Under which condition does a monopoly market attain maximum profit ?

Selected Answer:
Slope of the marginal revenue is identical to slope of marginal cost curve

Question 16
1 out of 1 points

When is the marginal revenue curve same as the demand curve?

Selected Answer:
Price is equal to marginal revenue

Question 17
0 out of 1 points

When will a firm stop producing or increasing its product?

Selected Answer:
Average cost is equal to total cost

Question 18
0 out of 1 points

Economic profits and losses play a crucial role in the model of perfect competition.

Selected Answer: False

Question 19
1 out of 1 points

Which firm is entirely opposite to the perfect competition firm?

Selected Answer:
Monopoly

Question 20
0 out of 1 points

"Economic profits in a system of perfectly competitive markets will, in the long run, be driven
to ______________ in all industries."

Selected Answer: monopoly

Question 21
1 out of 1 points

Which of the following firm has no rivals in its industry?

Selected Answer:
Monopoly firm

Question 22
0 out of 1 points

A firm sets and puts the price as per the output it generates which is called ___________
Setter.

Selected Answer: trend

Question 23
1 out of 1 points

A firm that confronts economies of scale over the entire range of outputs demanded in its
industry is a natural ________.

Selected Answer: monopoly

Question 24
1 out of 1 points

An expenditure that has already been made and that cannot be recovered is called ________
cost.

Selected Answer: sunk

Question 25
1 out of 1 points

Profit maximisation is always based on ___________ Decision Rule.

Selected Answer: marginal

Question 26
1 out of 1 points

"As per the Marginal Decision Rule, additional unit of goods should be produced as marginal
revenue of additional unit exceeds the ____ cost."

Selected Answer: marginal

Question 27
0 out of 1 points

Which of the following is not a factor which affects the monopoly firm?

Selected Answer:
Location

Question 28
1 out of 1 points

Profit maximisation is always based on what?

Selected Answer:
Marginal decision rule

Question 29
1 out of 1 points

Which of the following is the only way to measure the degree to which output in an industry is
concentrated among a few firms?

Selected Answer:
Concentration ratio

Question 30
0 out of 1 points

The degree to which output in an industry is concentrated among a few firms is to use a ratio
called _________ Ratio.

Selected Answer: concentration ratio

Question 31
1 out of 1 points

Which is the equation for concentration ratio?

Selected Answer:
CRm=s1+s2+s3+ -------+sm (Where s = Market share of firm)

Question 32
0 out of 1 points

A choice based on the recognition that the actions of others will affect the outcome of the
choice and that takes these possible actions into account is called _________ choice.

Selected Answer: rational

Question 33
1 out of 1 points

Which of the following is an analytical approach through which strategic choices can be
assessed?

Selected Answer:
Game theory

Question 34
0 out of 1 points

Once the firm implements a strategic decision there will be an output called as _____.

Selected Answer: True

Question 35
1 out of 1 points

Which of the following application is used to explain the game theory?

Selected Answer:
Prisoners dilemma

Question 36
0 out of 1 points

_______ and input markets are frequently classified according to the number of sellers and
buyers.

Selected Answer: [None Given]

Question 37
1 out of 1 points

One of the important concepts of _________ market is the Concentration Ratio which is the
percentage of market share owned by the largest firms in an industry.

Selected Answer:
Oligopoly

Question 38
1 out of 1 points

The ________ Total Cost (ATC) at an output of Qm units is ATCm.

Selected Answer: average