Search This Blog

Thursday, March 1, 2012

Economics Quiz - 17 (Economics For Exams)

1. When marginal utility is negative, total utility is
[B]At a minimum.
[C]Equal to zero.

2. Which of the following is false in first-degree price discrimination?
[A]The monopolist will be able to extract the entire consumer’s surplus
[B]The price of each unit will be different
[C]By following first degree price discrimination the profit of the monopolist will be more than what he could otherwise earn at a single price
[D]The price of the first unit will be less than that of the subsequent units

3. At a given price, if quantity demanded of a product is greater than quantity supplied, the market forces will respond by
[A]Reducing the price of the product and thereby reducing profits of the firms
[B]Increasing the price of the product and thereby increasing profits of the firms
[C]Reducing the price of the product and thereby increasing profits of the firms
[D]Increasing the price of the product and thereby reducing profits of the firms

4. Which of the following is an example of implicit cost?
[A]Interest payments on an outstanding loan of the firm
[B]Salaries paid to the firm's managers
[C]Salaries paid to the firm's assembly-line workers
[D]Rental income foregone on assets owned by the firm and employed in the business.

5. In the short run a firm should shut down if
[A]Price is below marginal cost
[B]Price is below average fixed cost
[C]Price is below average variable cost
[D]Price is below average total cost

6. Floods in Brazil, Columbia, and Bolivia wipe out 30% of the entire world's coffee production. As a result, if the price of coffee rises by 200%, the elasticity of demand for coffee is
[A]– 6.67
[B]– 67.00
[C]– 3.00
[D]None of the above.

7. Which of the following is true of a straight-line demand curve?
[A]Elasticity is equal to zero at the midpoint
[B]As you move down along the curve, the elasticity falls
[C]As you move down along the curve, the elasticity rises, and then falls
[D]As you move down along the curve, the elasticity rises

8. The long-run equilibrium outcome in monopolistic competition and perfect competition is similar, because in both the market structures
[A]The efficient level of output will be produced in the long run
[B]Firms will be producing at their minimum average cost of production
[C]Firms will only earn normal profits
[D]Firms realize all economies of scale

9. Total cost function of a firm is TC = 6000 + 10Q. If price of the product sold by the firm is 12 per unit, the break-even sales revenue is

10. When people have very little time to respond to price changes, demand becomes
[A]More elastic
[B]Less elastic
[C]Unitary elastic
[D]Perfectly elastic

11. Which of the following statements is not correct?
[A]The fixed cost of a firm in the long run will be less than the fixed cost of the firm in the short run
[B]Fixed costs are not dependent on the firm’s level of output
[C]The difference between average total cost and average variable cost indicates the amount of average fixed cost of a firm
[D]With the increase in output, the average fixed cost of the firm initially decreases at a decreasing rate and later at an increasing rate

12. Which of the following is not true with respect to a perfectly competitive market?
[A]There are many sellers in the market
[B]Individual firms are price makers
[C]Products sold by the firms are identical
[D]Anyone can enter or exit the industry without difficulty

13. If sales of CD players increase from 10,000 to 14,000 per month as per capita income increases from Rs. 15,000 to Rs.20,000, which of the following is true?
[A]Demand for CD players is income inelastic
[B]CD player is a Giffen good
[C]CD player is an inferior good, but not a Giffen good
[D]CD player is a luxury

14. A profit maximizing firm seeks to maximize the difference between
[A]Marginal revenue and marginal cost
[B]Marginal revenue and average cost
[C]Total revenue and marginal revenue
[D]Average revenue and average cost

15. The daily income of Kamesh is Rs.100. He spends all his income on goods X and Y. Currently, the prices of goods X and Y are Rs.6 and Rs.4, respectively. Mr. Kamesh daily buys 10 units of good X and 10 units of good Y. If the utility of the last unit of good X and good Y consumed added same amount of utility to the total utility, then we can say that
[A]The current consumption pattern of Mr. Kamesh gives him the maximum possible utility
[B]He obtains higher additional utility per rupee from good X than from good Y
[C]He should buy more of good X and fewer of good Y
[D]He should buy more of good Y and fewer of good X



#AhilyaBaiHolkarJayanti #Current Affairs #FamousPersons #GeneralKnowledge #GK #GS #Hindi #HinduSamrajyaDiwas #Ling #Management #ShivajiMaharaj 2012 2012 GK 2013 Current Affairs 2013 Daily Logo Quiz 2013 General Knowledge 2013 Logo Game Quiz 2014AugustCA 2014AugustGK 2014AugustGS 2014AugustIPC 2014CA 2014DecemberCA 2014DecemberGK 2014DecemberGS 2014DecemberIPC 2014JulyCA 2014JulyGK 2014JulyGS 2014JulyIPC 2014JuneCA 2014JuneGK 2014JuneGS 2014JuneIPC 2014MayCA 2014MayGK 2014MayGS 2014MayIPC 2014NovemberCA 2014NovemberGK 2014NovemberGS 2014NovemberIPC 2014OctoberCA 2014OctoberGK 2014OctoberGS 2014OctoberIPC 2014SeptemberCA 2014SeptemberGK 2014SeptemberGS 2014SeptemberIPC 2015GK 2015GScience 2015IndianPolity 2017 Current Affairs 2017August 2017December 2017November 2017October 2017September 2018 Current Affairs 2018FebruaryCA 2018JanuaryCA 2019GK 2020 Current Affairs 2020AugustCA 2020DecCA 2020GeneralScience 2020GK 2020JulyCA 2020JuneCA 2020MayCA 2020NovCA 2020OctCA 2020SepCA 2020SepGK 2021 April GK 2021 Current Affairs 2021 Feb GK 2021 January GK 2021 March GK 26 January A.R.M.Y. Accounting Adjectives Allahabad AllahabadQuiz Ancient History Angular Framework AngularJS April 2012 April 2013 Current Affairs April 2013 GK April 2013 Vocabulary Quiz April 2014 Aptitude Articles Assam August 2012 August2020 Authors Auto Quiz Automobile Quiz Automotive Quiz B School Banaras Bangalore Quiz Bangtan Sonyeondan Bank Exam Entrance Bank PO Exam Banking Banking Clerical Preparation Banking GK Banking Terminology BAT BCA Benares Benares Quiz Bengaluru Bharat Bollywood Quiz BollywoodPersons Books Boudh Festival Britain BTS Buddhism Festivals Bulletproof Boy Scouts Business Communication Business Current Affairs 2012 Business Ethics Business Law Business Management Business Quiz Business School Interview Business World C Programming Capital Market CAT Celebrity Quiz Christmas Quiz Cities of India City Quiz Civil Service Exams Class12English Class2Computer Class2English Class2GA Class2Maths Class3English Class3GA Class3GK Class3Maths Class4English Class7 Class7English Class8Science Class9English Cloud Computing CMMI-DEV Commodity and Derivatives Commodity Market Quiz Compensation and Benefits Compensation Management Computer Quiz Computers Conjunctive Adverbs Corporate Laws Countries Country Quiz Current Affairs Daily Quote Data Mining Data Science Database Management System DataBase Quiz DBMS DBMS True False Questions December 2012 Current Affairs December 2012 GK December 2013 Deepawali Delhi Delhi Quiz Demonetization Dev Anand Quiz Dev Sahab Dilli Diwali Diwali Quiz Dus ka Dum Eco Quiz Economics Economics MCQ Economics Multiple Choice Economics True False Quiz Email Etiquette English Environment Estimation Models EVS Facts about Allahabad Facts about Bangalore Facts about Delhi Facts about Dev Anand Facts about India Facts about Mahatma Gandhi Facts about Patna Facts about Rabindranath Tagore Facts about Varanasi FamousAuthors FamousBooks February 2012 February 2013 Current Affairs February 2013 GK February 2014 Festival Quiz Festivals of India FestivalWishes Filmy Quiz Finance Finance MCQ Finance Multiple Choice Finance Objective Questions Finance Quiz Finance True False Financial Accounting Financial Institutions Financial Management Fun Quiz FunTrivia Gautam Buddha Gender General Knowledge GeneralAwareness Geography Gerunds Ghrisneshwar Jyotirling Temple GK GK Quiz GK2016 GKToday GMAT Grammar GRE English GurPurab Gurudev Rabindranath Tagore GuruPurnima Gyan Guru HarryPotter HCM Helping Verbs Hindi Cinema Hindi Movies Quiz Hindi Synonyms Class 4 Hindi4 Hindu Festivals Hindu Gods Hindustan History Holi Quiz Holika Dahan HR HRD HRM Quiz Human Capital Management Human Resource Human Resource Management Quiz IAS IEO3English IEO4English IIFT IIM Interview IMO3Maths IMO4Maths IndependenceDay. SwatantraDiwas India Quiz Indian Budget Indian Cinema Indian Festivals Indian Polity and Constitution Information Technology International Days International Economics International Finance International Marketing Introduction to Management ISB Interview IT IT Aptitude Jain Festivals Janmashtmi January 2012 January 2013 Current Affairs January 2013 GK January 2014 Java Java Interview Questions Java MCQ Java Multiple Choice Java Programming July 2012 July 2013 Current Affairs July 2013 GK July 2013 Vocabulary Quiz July2020 June 2012 June 2013 GK June 2013 Vocabulary Quiz Jyotirling Kashi Vishwanath Mandir KBC KBC Questions Kedarnath Temple Know Allahabad Know Bangalore Know Delhi Know Patna Law MCQ Law Quiz Learn English LLB Quiz Logical Reasoning Logo Quiz Lohri Lord Buddha Macro Economics Mahatma Gandhi Quiz Maintenance Management MakarSankranti Mallikarjuna Jyotirlinga temple Management Management Accounting Management MCQ Management Quiz Managerial Economics Managerial Effectiveness Manipur MarathaKing March 2012 March 2013 Current Affairs March 2013 GK March 2013 Vocabulary Quiz March 2014 Mark II Function Point Analysis Marketing Marketing Management Quiz MAT MataVaishnoDevi Material Management Material Requirement Planning Materials Management May 2012 May 2013 Current Affairs May 2013 GK May 2013 Vocabulary Quiz May 2014 MBA MBA Entrance MBA IT MCA Medieval History Meghalaya Mental Ability Micro Economics Mizoram MM Modern History Monuments of India Multiple Choice Questions MyGov Quiz Nagaland National Days National Education Policy National Girl Child Day NCERT6Maths NCERT7Geog NCERT7Hindi NCERT7Maths NCERTGeography NCFM NEP2020 New Delhi Nouns November 2012 November 2012 GK November 2013 Numerical Ability OB OB Quiz October 2012 October 2012 GK Olympics Omkareshwar Jyotirlinga Temple Online Quiz Contest Operations Operations Management Organisation Behavior Organisation Behaviour Organizational Behaviour PADMAN Patliputra Patna Patna Quiz PCS Personality Quiz Personnel Administration Personnel Management Quiz PGCPM PGDBA PGDCA PGDIT Placement Papers of IT Companies PMP PMP Certification PMP Questions Portfolio Management Possessive Nouns Pratiyogita Darpan Prayag Production and Operation Management Programming Languages Project Management Project Management MCQ QMBlog QT Quant Quantitative Aptitude Quantitative Technique Quotations Rabindranath Tagore Quiz Rashtriya Ekta Divas RDBMS Republic Day Samanya Gyan Sangam Santa Claus SAP HANA SAT Satyamev Jayate Science Security Analysis September 2012 September 2012 GK Shree Mahakaleshwar Temple Shree Siddhivinayak Ganapati Temple Shree Somnath Temple Siddhartha SNAP Software Testing Spellings Sports SportsPersons Sri Ramanathaswamy Temple StatesOfIndia Static GK Strategic Finance Strategic Management Strategy Strategy True False SundayFun Swami Vivekanand Swami Vivekananda Quiz Synonyms Systems Quiz Taiwan National Day Tata Crucible Teasers Teej Temples Temples of India Time and Calendar TOEFL Trimbakeshwar Jyotirlinga Temple Tripura TV Show UK Quiz United Kingdom Vaidyanatha Jyotirlinga temple Varanasi Verbal Ability Vocab Vocabulary World Heart Day World Mental Health Day World Teachers Day World Tourism Day XLRI Interview