( Best 200+ ) Basics of Economics MCQ

Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 1. The economic problem arises since A. wants are unlimited B. resources are limited C. resources are capable of alternative uses D. all of the above Answer: - D. all of the above 2. Economic problem arises in A. planned economies B. free market economies C. mixed economies D. all of the above Answer: - D. all of the above 3. The resources are : A. limited B. unlimited C. not only limited but are capable of alternative uses D. none of the above Answer: - C. not only limited but are capable of alternative uses 4. ----- is not an example of free good A. sunlight B. car C. petrol D. computer Answer: - A. sunlight 5. The term production refers to: A. producing things which are capable of satisfying human wants B. creation or addition of utilities C. transformation of inputs into output D. all of the above Answer: - D. all of the above Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 6. The problem of allocation of resources is concerned with: A. what to produce B. how to produce C. for whom to produce D. all of the above Answer: - A. what to produce 7. The distribution of national product among the members of the society is the problem of: A. what to produce B. how to produce C. for whom to produce D. all of the above Answer: - C. for whom to produce 8. Which one of the following come under macro economics: A. per capita income B. study of a firm C. individual income D. theory of factor pricing Answer: - A. per capita income 9. Which one of the following is not come under macro economics A. national income B. per capita income C. disposable income D. individual income Answer: - D. individual income 10. Partial equilibrium analysis come under: A. micro economics B. macro economics C. welfare economics D. international economics Answer: - A. micro economicsAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 11. “The starting point of all economic activity is the existence of human wants” Who said this? A. adam smith B. selligman C. ricardo D. alfred marshall Answer: - B. selligman 12. Production and consumption takes place simultaneously in the case of A. goods B. services C. both in the case of goods and services D. neither in the case of goods and services Answer: - B. services 13. Economic growth can be achieved through A. advanced technology B. expansion of resources C. both a & b D. neither a & b Answer: - C. both a & b 14. Micro economics doesn’t deal with: A. the study of individual economic units B. determination of factor prices C. price determination of commodities D. general equilibrium analysis Answer: - D. general equilibrium analysis 15. Name the economist who analyses the subject matter of economics into two branches: micro economic analysis and macro economic analysis. A. adam smith B. alfred marshall C. ragner frisc D. p a samuelson Answer: - C. ragner friscAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 16. Transformation of inputs into outputs is known as A. production B. consumption C. distribution D. exchange Answer: - A. production 17. ----- is an example of secondary input A. land B. labour C. capital D. raw material Answer: - D. raw material 18. Odd-man out from the following A. steel B. medicine C. education D. train Answer: - C. education 19. The choice of techniques of production is related to the problem of A. what to produce B. how to produce C. for whom to produce D. none of the above Answer: - B. how to produce 20. The functional relationship between inputs and outputs is called A. production function B. consumption function C. investment function D. saving function Answer: - A. production functionAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 21. Firms owned by one individual is known as A. proprietorship B. partnership C. corporations D. none of the above Answer: - A. proprietorship 22. Firms owned by two or more individuals is known as A. proprietorship B. partnership C. corporations D. none of the above Answer: - B. partnership 23. Firms owned by stock holders are known as A. proprietorship B. partnership C. corporations D. none of the above Answer: - C. corporations 24. The major objective of a firm is A. profit maximization B. revenue maximization C. sales maximization D. none of the above Answer: - A. profit maximization 25. Which one of the following is an example of fixed input A. raw materials B. casual workers C. plant and equipments D. all of the above Answer: - C. plant and equipmentsAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 26. In short-run A. all inputs are fixed B. all inputs are variable C. some inputs are fixed and some are variable D. none of the above Answer: - C. some inputs are fixed and some are variable 27. In long-run A. all inputs are fixed B. all inputs are variable C. some inputs are fixed and some are variable D. none of the above Answer: - B. all inputs are variable 28. The variable cost of a firm vary in direct proportion to the A. volume of its output B. extent of its profits C. volume of its sale D. all of the above Answer: - A. volume of its output 29. Law of variable proportions is concerned with A. long-run production function B. laws of returns to scale C. short-run production function D. none of the above Answer: - C. short-run production function 30. The ‘point of inflection’ come in which stage of the law of variable proportions A. stage i B. stage ii C. stage iii D. none of the above Answer: - A. stage iAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 31. A rational producer will select his level of production in which stage of the law of variable proportions A. stage i B. stage ii C. stage iii D. either stage i or stage ii Answer: - B. stage ii 32. Total product reaches at maximum when A. mp is increasing B. mp is maximum C. mp 0 D. mp is negative Answer: - C. mp 0 33. Returns to scale refers to the production function where A. all factors are fixed B. some factors are fixed and others are variable C. all factors are variable D. none of the above Answer: - C. all factors are variable 34. In the case of diminishing returns to scale, a given proportionate increase in all factors causes A. a more than proportionate increase in output B. an equal proportionate increase in output C. a less than proportionate increase in output D. none of the above Answer: - C. a less than proportionate increase in output 35. Increasing returns to scale occurs due to A. division of labour B. specialization C. economies of scale D. all of the above Answer: - D. all of the above Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 36. The cause for diminishing returns to scale is: A. improper proportion of factors of production B. difficulty in the combination of certain factors C. excess combination of certain factors D. all of the above Answer: - D. all of the above 37. The solution to diminishing returns to scale is : A. technical progress B. expansion of resources C. proper combination or resources D. all of the above Answer: - D. all of the above 38. Which one of the following is not related to economies of scale: A. scope for division of labour and specialization B. scope for getting inputs at cheaper rates C. difficulty faces by the managers to coordinate the business D. scope for better storage facilities Answer: - C. difficulty faces by the managers to coordinate the business 39. The law of Diminishing returns is applicable to: A. agriculture only B. industry only C. in short-run only D. universally Answer: - D. universally 40. labourers are employed the firm produces 136 units of output. Then the marginal product is --- A. 120 B. 136 C. 6 D. 16 Answer: - C. 6Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 41. Other things remaining the same, the quantity of a product demanded increases with ------------ in price. A. increase B. decrease C. variation D. none of the above Answer: - B. decrease 42. When total utility is maximum, marginal utility is: A. maximum B. one C. zero D. infinite Answer: - C. zero 43. For complementary goods, the cross elasticity of demand: A. positive B. negative C. zero D. none Answer: - B. negative 44. Relation between price of a commodity and demand for another commodity is measured by: A. price elasticity B. income elasticity C. cross elasticity D. elasticity of substitution Answer: - C. cross elasticity 45. When TU falls, MU is: A. rises B. zero C. positive D. negative Answer: - D. negativeAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 46. Demand varies ------------- with price. A. directly B. positively C. inversely D. none of the above Answer: - C. inversely 47. When Q f (P), the elasticity coefficient is measured by: A. ∆q/∆p / p/q B. ∆p/∆q * q/p C. ∆q/∆p * p/q D. ∆p/∆q / q/p Answer: - C. ∆q/∆p * p/q 48. Income elasticity of demand for inferior good is: A. negative B. positive C. zero D. unity Answer: - A. negative 49. In the case of luxury goods, the income elasticity of demand will be: A. less than unity B. unity C. more than unity D. all the above Answer: - C. more than unity 50. Income elasticity is positive, but less than unity in the case of: A. necessity B. luxury C. inferior D. substitutes Answer: - A. necessityAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 51. In drawing an individual demand curve for a commodity, all but which of the following are kept constant: A. individual’s money income B. the prices of the related commodity C. price of the commodity under consideration D. tastes of the consumer Answer: - C. price of the commodity under consideration 52. When an individual’s income rises, when everything else remains the same, his demand for normal goods: A. rises B. falls C. remains the same D. any of the above is possible Answer: - A. rises 53. When an individual’s income falls, when everything else remains the same, his demand for inferior goods: A. increases B. decreases C. remains unchanged D. cannot say Answer: - A. increases 54. When the price of the substitute commodity of X falls, the demand for X: A. rises B. falls C. remains unchanged D. all of the above is possible Answer: - B. falls 55. If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is: A. greater than B. one equal to one C. smaller than one D. zero Answer: - D. zero Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 56. If the income elasticity of demand is greater than one, then the commodity is: A. necessity B. luxury C. inferior D. non-related commodity Answer: - A. necessity 57. Which of the following is an exception to the law of demand? A. giffen good B. normal good C. superior good D. all of the above Answer: - A. giffen good 58. The law of diminishing marginal utility was popularized by: A. keynes B. marshall C. smith D. samuelson Answer: - B. marshall 59. If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is: A. luxury B. necessity C. giffen’s goods D. independent good Answer: - B. necessity 60. Cross elasticity of demand in the case of substitutes: A. zero B. negative C. positive D. infinity Answer: - C. positiveAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 61. If a small change in price leads to infinitely large change in quantity demanded, then the demand is: A. perfectly elastic B. perfectly inelastic C. elastic D. inelastic Answer: - A. perfectly elastic 62. Net addition to total utility when one more unit is consumed is: A. au B. mu C. mc D. tu Answer: - B. mu 63. Most important determinant of demand is : A. income B. wealth C. price D. advertisement Answer: - C. price 64. Which of the following is the reason for law of demand: A. price effect B. backlash effect C. income effect D. real balance effect Answer: - C. income effect 65. Net addition to total cost is called: A. marginal cost B. average cost C. fixed cost D. variable cost Answer: - A. marginal costAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 66. The market equilibrium for a commodity is determined by : A. market demand B. market supply C. balancing of the forces of demand and supply D. any of the above Answer: - C. balancing of the forces of demand and supply 67. When there are only few sellers of the commodity, the market is called: A. monopoly B. duopoly C. oligopoly D. monopsony Answer: - C. oligopoly 68. If the supply curve of the commodity is having a positive slope, a rise in the price of the commodity, results in: A. increase in supply B. increase in quantity supplied C. decrease in supply D. decrease in quantity supplied Answer: - B. increase in quantity supplied 69. From the position of stable equilibrium, the market supply of a commodity decreases, while the market demand remains unchanged, then: A. equilibrium price falls B. equilibrium quantity rises C. both equilibrium price and equilibrium quantity decreases D. equilibrium price rises, but equilibrium quantity falls Answer: - D. equilibrium price rises, but equilibrium quantity falls 70. Elasticity of supply for a positively sloped straight line supply curve that intersects the price axis is: A. equal to zero B. equal to one C. greater than one D. constant Answer: - C. greater than oneAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 71. In which of the following market, advertisement is absent: A. monopolistic competition B. perfect competition C. oligopoly D. none of the above Answer: - C. oligopoly 72. -------------- cost can never become zero. A. variable cost B. fixed cost C. marginal cost D. average cost Answer: - B. fixed cost 73. If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is: A. inelastic B. elastic C. unitary elastic D. perfectly elastic Answer: - A. inelastic 74. If a positively sloped linear supply curve passes through the origin, the elasticity of supply is A. inelastic B. elastic C. unitary elastic D. perfectly elastic Answer: - C. unitary elasticAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 75. Average cost is the sum of AVC and A. mc B. tc C. afc D. atc Answer: - C. afc 76. The horizontal supply curve parallel to quantity axis represents A. elastic supply B. inelastic supply C. perfectly elastic supply D. perfectly inelastic supply Answer: - C. perfectly elastic supply 77. When output is zero, variable cost is -------- A. maximum B. minimum C. infinity D. zero Answer: - D. zero 78. Change in quantity supplied of a product can result from A. changes in own price B. changes in cost of production C. change in technology D. change in price of related products Answer: - A. changes in own price 79. At prices above the equilibrium price A. quantity supplied exceeds quantity demanded B. quantity demanded exceeds quantity supplied C. there is shortage D. all of the above is possible Answer: - A. quantity supplied exceeds quantity demanded 80. When MC cuts AC, AC is at its ------------ A. maximum B. minimum C. zero D. negative Answer: - B. minimum Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 81. Cost function relates cost to A. input B. output C. raw material D. machines Answer: - B. output 82. An increase in market demand, supply remaining the same results in A. decrease in equilibrium price B. decrease in equilibrium quantity C. decrease in equilibrium price and increase in equilibrium quantity D. both equilibrium price and quantity rises Answer: - D. both equilibrium price and quantity rises 83. There is no distinction between firm and industry in A. perfect competition B. monopoly C. monopolistic competition D. oligopoly Answer: - B. monopoly 84. A fall in the market demand, supply remaining the same results in A. increase in equilibrium price B. increase in equilibrium quantity C. increase in equilibrium price and decrease in equilibrium quantity D. both equilibrium price and quantity falls Answer: - D. both equilibrium price and quantity falls 85. The cost of next best alternative is called A. marginal cost B. average cost C. opportunity cost D. direct cost Answer: - C. opportunity cost Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 86. When MC is greater than AC, AC A. rises B. falls C. maximum D. minimum Answer: - A. rises 87. There is ------- relationship between price and quantity supplied A. positive B. negative C. constant D. inverse Answer: - A. positive 88. Supply curve represents -------- relationship between quantity and price A. direct B. inverse C. either direct or inverse D. none of the above Answer: - A. direct 89. National Income means: A. gnp at factor cost B. gnp at market price C. nnp at factor cost D. nnp at market price Answer: - C. nnp at factor cost 90. The difference between GDP and NDP equals: A. transfer payments B. net indirect taxes C. net factor income from abroad D. depreciation Answer: - D. depreciationAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 91. Which of the following is true? A. gnp + depreciation nnp B. gnp gdp + net factor income from abroad C. ndp gnp minus net indirect taxes D. nnp dgp minus depreciation Answer: - B. gnp gdp + net factor income from abroad 92. NNP is equal to: A. gnp plus depreciation B. gnp minus depreciation C. gnp minus exports D. gnp plus exports Answer: - B. gnp minus depreciation 93. Which of the following is not a method of national income estimation? A. matrix method B. income method C. expenditure method D. product method Answer: - A. matrix method 94. An accounting year in India is: A. calendar year B. academic year C. fiscal year D. none of these Answer: - C. fiscal year 95. Increase in real National Income (NI) means increase in: A. ni at current prices B. ni at constant prices C. both D. none of these Answer: - B. ni at constant pricesAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 96. Net indirect taxes means: A. indirect taxes plus subsidies B. income minus taxes C. indirect taxes minus subsidies D. exports minus imports Answer: - C. indirect taxes minus subsidies 97. Net factor income from abroad shows the difference between: A. gdp and ndp B. nnp and ndp C. gnp and gdp D. gnp and nnp Answer: - C. gnp and gdp 98. Per capita income is equal to: A. population/national income B. national income/population C. national income/gdp D. nnp/gnp Answer: - B. national income/population 99. National income in India is estimated by: A. rbi B. nsso C. cso D. world bank Answer: - C. cso 100. The first estimate of National income in India was done by: A. k.n. raj B. v.k.r.v. rao C. dadabai naoroji D. p.c. mahalanobis Answer: - C. dadabai naorojiAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 101. Pick the odd one out: A. real national income B. ni at constant price C. ni at current prices D. ni at base year price Answer: - C. ni at current prices 102. GDP deflator is given by: A. nominal ni/real ni B. nominal dgp/real gdp C. nominal gdp/ nominal gnp D. real gdp/real gnp Answer: - B. nominal dgp/real gdp 103. Value of output minus intermediate consumption is: A. depreciation B. value added C. net value added D. net exports Answer: - B. value added 104. Personal income minus personal taxes is: A. national income B. private income C. disposable income D. per capita income Answer: - C. disposable income 105. National income is a --------variable. A. flow B. stock C. static D. dynamic Answer: - A. flow Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 106. In India, National income is estimated at: A. current prices B. constant prices C. both current and constant prices D. none of these Answer: - C. both current and constant prices 107. Which of the following is true: A. gdp is a geographical concept B. gdp is not a geographical concept C. gdp and gnp are same D. none of them Answer: - A. gdp is a geographical concept 108. GNP measured in terms of current market prices is called: A. nominal gnp B. real gnp C. both D. none Answer: - A. nominal gnp 109. In India, the current base year is: A. 1980-81 B. 1993-94 C. 1999-2000 D. 2004-05 Answer: - D. 2004-05 110. Which of the following doest not include in the group? A. gdp B. gnp C. gva D. ndp Answer: - D. ndp Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 111. The term “Classical Economics” was first used by: A. j.m. keynes B. adam smith C. karl marx D. david ricardo Answer: - C. karl marx 112. Who is the leader of the Classical school? A. thomas robert malthus B. j.s. mill C. david ricardo D. adam smith. Answer: - D. adam smith. 113. The core of classical economists is: A. effective demand B. employment C. say’s law of market D. socialism Answer: - C. say’s law of market 114. ‘Law of Market’ is attributed to: A. j.s. mill B. j.b. say C. alfred marshall D. a.c. pigou Answer: - B. j.b. say 115. The Classicals adopted ---------policy: A. governmental policy B. laissez-faire C. policy of restriction D. none of these Answer: - B. laissez-faireAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 116. According to Classicals, full employment is a: A. rare phenomenon B. normal phenomenon C. abnormal phenomenon D. none of these Answer: - B. normal phenomenon 117. According to the Classical economists, general over production is: A. possible B. impossible C. both D. none Answer: - B. impossible 118. According to the Classical economists, savings and investments are: A. always unequal B. always equal C. never equal D. sometimes equal Answer: - B. always equal 119. Classical aggregate supply curve is: A. perfectly elastic B. perfectly inelastic C. more elastic D. unitary elastic Answer: - B. perfectly inelastic 120. Pick the odd one from the following: A. law of market B. j.b. say C. full employment D. j.m. keynes Answer: - D. j.m. keynesAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 121. According to the Classicals, investment is a function of: A. saving B. income C. employment D. rate of interest Answer: - D. rate of interest 122. “Supply creates its own demand” is called: A. law of supply B. law of market C. law of demand D. law of elasticity Answer: - B. law of market 123. Under the classical system, the equilibrium will be at: A. under employment B. full employment C. voluntary employment D. disguised unemployment Answer: - B. full employment 124. When savings exceeds the demand for savings, the rate of interest will: A. rise B. fall C. remain constant D. none of these Answer: - B. fall 125. Rate of interest will increase when the demand for saving is: A. less than its supply B. equal to its supply C. more than its supply D. less than or equal to its supply Answer: - C. more than its supplyAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 126. In the Classical system, the role of the government is: A. the highest B. not at all needed C. limited D. important Answer: - C. limited 127. Equilibrium in the economy is settled by ---------, according to the Classicals. A. centralized planning B. price mechanism C. both the planning and price mechanism D. none of these Answer: - B. price mechanism 128. Self interest, competition, profit motive are the features of: A. socialism B. capitalism C. marxism D. mixed economy Answer: - B. capitalism 129. The Great Depression was during: A. 1930s B. 1920s C. 1940s D. 1830s Answer: - A. 1930s 130. The equilibrium price is determined by the forces of: A. supply only B. demand only C. both demand and supply D. none of these Answer: - C. both demand and supply Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 131. Temporary unemployment is -------------, according to the Classical economists: A. impossible B. permanent C. possible D. none of these Answer: - C. possible 132. J.B. Say was a ---------------Economist. A. swedish B. german C. french D. american Answer: - C. french 133. Pick the odd one out: A. j.b. say B. david ricardo C. adam smith D. j.m. keynes Answer: - D. j.m. keynes 134. Author of the book ‘The General Theory of Employment, Interest and Money’: A. karl marxq B. j.b. say C. j.m. keynes D. adam smith Answer: - C. j.m. keynes 135. ‘The General Theory’, was published in : A. 1776 B. 1890 C. 1936 D. 1950 Answer: - C. 1936 Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 136. The branch of Economics that deals with economic aggregate is called: A. micro economics B. development economics C. macro economics D. welfare economics Answer: - C. macro economics 137. The central theme of Keynesian Theory is: A. laissez-faire B. free trade C. effective demand D. self interest Answer: - C. effective demand 138. Who repudiated Say’s law of market? A. j.b. say B. david ricardo C. j.s. mill D. j.m. keynes Answer: - D. j.m. keynes 139. Effective demand is that demand when: A. aggregate demand is greater than aggregate supply B. aggregate demand is less than aggregate supply C. aggregate demand is equal to aggregate supply D. all of these Answer: - C. aggregate demand is equal to aggregate supply 140. The concept of effective demand is associated with the name of: A. marshall B. keynes C. krugman D. adam smith Answer: - B. keynesAlso Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 141. The proportion between total income and total consumption is called: A. average propensity to consume B. average propensity to save C. marginal propensity to consume D. marginal propensity to save Answer: - A. average propensity to consume 142. The proportion between incremental income and incremental consumption is called: A. apc B. aps C. mpc D. mps Answer: - C. mpc 143. The proportion between total income and total saving is called: A. apc B. aps C. mpc D. mps Answer: - B. aps 144. 1- MPC is called: A. apc B. aps C. mpc D. mps Answer: - D. mps 145. APC + APS is equal to: A. 0 B. >0 C. 1 D. <0 Answer: - C. 1Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 146. Multiplier is obtained by: A. 1 – mpc B. 1/1- mps C. 1/1- apc D. 1/1-mpc Answer: - D. 1/1-mpc 147. Exports minus imports is termed as: A. net income B. net imports C. net exports D. national income Answer: - C. net exports 148. As income increases consumption also increases, but: A. proportionately B. more than proportionately C. less than proportionately D. equally Answer: - C. less than proportionately 149. The expected return on investment is called: A. marginal propensity to save B. marginal propensity to consume C. marginal revenue D. marginal efficiency of investment Answer: - D. marginal efficiency of investment 150. Marginal efficiency of investment curve is: A. slopping downwards B. slopping upwards C. parallel to x axis D. parallel to y axis Answer: - A. slopping downwards Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 151. According to Keynes, unemployment is due to: A. deficiency of capital B. deficiency of labour C. deficiency of education D. deficiency in effective demand Answer: - D. deficiency in effective demand 152. “In the long run, we are all dead”. Who said this? A. keynes B. adam smith C. karl marx D. david ricardo Answer: - A. keynes 153. According to Keynes, investment is a function of: A. rate of interest B. rate of profit C. rate of mei D. mei and rate of interest Answer: - D. mei and rate of interest 154. Keynes believed in : A. full employment equilibrium B. under employment equilibrium C. both D. none Answer: - B. under employment equilibrium 155. According to Keynes, wages and prices are: A. rigid B. flexible C. variable D. automatic Answer: - A. rigid Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 156. In Economics, 1930s is popularly known as the period of: A. great battle B. great depression C. industrial revolution D. great devide Answer: - B. great depression 157. Keynes strongly argued for: A. free trade B. non-intervention of government C. laissez-faire D. governmental intervention Answer: - D. governmental intervention 158. Consumption expenditure directly varies with: A. savings B. investment C. disposable income D. rate of interest Answer: - C. disposable income 159. An important issue of macro economics is the determination of: A. consumption B. production C. utility D. income and employment Answer: - D. income and employment 160. Pick the odd one: A. aggregate demand B. effective demand C. j.m. keynes D. law of market Answer: - D. law of market Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 161. Which of the following items does not include in the group? A. consumption B. investment C. rate of interest D. net exports Answer: - C. rate of interest 162. If marginal propensity to consume is 0.8, the value of multiplier will be: A. 1 B. 2.5 C. 5 D. 2 Answer: - C. 5 163. Who is known as the father of Modern Economics? A. adam smith B. j.m.keynes C. robinson D. ricardo Answer: - A. adam smith 164. Goods without which people can not live are called: A. comforts B. luxuries C. necessaries D. none Answer: - C. necessaries 165. The problem of what to produce is a problem of: A. distribution B. technological choice C. consumption D. allocation of resources Answer: - D. allocation of resources Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 166. Those things that possess both utility and scarcity are called: A. economic goods B. free goods C. intermediate goods D. luxuries Answer: - A. economic goods 167. If a worker specializes in the production of a single good, it is called: A. product based division of labour B. process based division of labour C. worker based division of labour D. none of these Answer: - A. product based division of labour 168. Goods produced for use in future productive process are called: A. intermediate goods B. final goods C. consumer goods D. capital goods Answer: - D. capital goods 169. In a horizontal straight line demand curve, the price elasticity of demand is: A. unity B. infinity C. zero D. less than one Answer: - B. infinity 170. Who wrote the article Laws of Returns Under Competitive Conditions? A. joan robinson B. e.h. chamberlin C. a.c. pigou D. p. sraffa Answer: - D. p. sraffa Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 171. Increase in output less than proportional to increase in inputs is called: A. increasing returns B. constant returns C. diminishing returns D. marginal returns Answer: - C. diminishing returns 172. A simplified representation of a real situation is called: A. theory B. hypotheses C. evidence D. economic model Answer: - D. economic model 173. When marginal product reaches its maximum, what can be said of total product? A. total product must be at its maximum B. total product starts to decline even if marginal product is positive C. total product is increasing if marginal product is still positive D. total product levels off Answer: - C. total product is increasing if marginal product is still positive 174. When a firm doubles its inputs and finds that its output has more than doubled, this is known as: A. economies of scale. B. constant returns to scale. C. diseconomies of scale. D. a violation of the law of diminishing returns. Answer: - A. economies of scale. 175. When average product is at a maximum, marginal product is: A. zero B. increasing C. equal to average product D. greater than average product Answer: - C. equal to average product Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel 176. The want satisfying power of a commodity: A. satisfaction B. utility C. value D. marginal utility Answer: - B. utility 177. Supply curve represents -------- relationship between quantity and price. A. direct B. inverse C. either direct or inverse D. none of the above Answer: - A. direct 178. Laws of return shows ---------production function. A. short-term B. medium term C. long term D. annual Answer: - A. short-term 179. In classical theory the level of employment is a function of: A. price level B. money wage rate C. quantity of money D. real wage rate Answer: - D. real wage rate 180. Consumption of capital good in the process of production is called as: A. capital consumption B. depreciation C. decay of capital D. none of the above Answer: - B. depreciation Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel Basics of Economics MCQ principles of economics mcq with answers pdf | microeconomics mcqs with answers pdf | multiple choice questions for economics with answers download pdf | economics mcq class 10 | micro and macro economics mcqs pdf | economics mcq class 9 | economics quiz questions and answers pdf | macroeconomics mcqs with answers pdf Basics of Economics MCQ 181. Economic Laws are: A. statement of tendencies B. exact and predictable C. definite D. none Answer: - A. statement of tendencies Also Read :- Marketing Management MCQs Digital Business Management MCQs Cost Accounting MCQs Join Our Telegram Channel

Basics of Economics MCQ

Basics of Economics MCQ

181. Economic Laws are:

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Basics of Economics MCQ

Basics of Economics MCQ

181. Economic Laws are:

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