( Best 300+ ) Micro Economics MCQ

by Mr. DJ

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.

Micro Economics MCQ

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

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