Micro Economics MCQ
Micro Economics MCQ Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
101. Economies of scale
A) Set in as soon as diminishing marginal physical productivity is
experienced
B) Are usually considered to be a phenomenon of the long run
C) Are not always available in the short run
D) Help ensure that industries will be competitive rather than monopolized
Answer:B
102. If the long run average cost curve for a typical firm in an industry is downward sloping to the right it becomes difficult to sustain the assumption of
A) Diminishing returns
B) Perfect competition
C) Ceteris paribus
D) Rising marginal costs in the short run
Answer:B
103. Marginal costs and average variable costs are equal when
A) Average variable cost is a maximum
B) Average variable cost is rising
C) Average variable cost is falling
D) Average variable cost is a minimum
Answer:D
104. Theory of demand examines the behaviour of the——–
A. Consumer
B. Producer
C. Firm
D. Industry
Answer:A
105. The want satisfying power of a commodity:
A. Satisfaction
B. Utility
C. Value
D. Marginal Utility
Answer:B
106. Utility is the concept which is:
A. Objective
B. Subjective
C. Both
D. None
Answer:B
107. Change in utility resulting from one unit change in consumption is called:
A. Total Utility
B. Extra Utility
C. Marginal Utility
D. Average Utility
Answer:C
108. When Total Utility is maximum, Marginal Utility is :
A. Zero
B. Negative
C. Positive
D. One
Answer:A
109. When Marginal Utility is negative, Total Utility:
A. Declines
B. Increases
C. Remains the same
D. None of these
Answer:A
110. Saturation point is the point where:
A. TU = 0
B. MU = 0
C. MU is +ve
D. TU = 1
Answer:B
Also Read:-