Top MCQs on Introduction
to economics
1.
Choose the one which is
not a factor of production from below?
I) Land
II) Labor
III) Money
d) Capital
2.
The option which best
describes the opportunity cost is?
I) The cost
of producing one more unit of a good or service
II) The cost of using a
resource in a Specific way, measured in terms of the next best alternative use
III) The
cost of producing a good or service (G&S), including both explicit &
implicit costs
d) The cost
of producing a good or service(G&S), excluding the cost of raw materials
3.
Among the below which
one not the characteristics of perfectly competitive market?
I) Many
buyers and sellers
II)
Homogeneous products
III) Barriers to entry
and exit
IV) Price
takers
4.
The law of demand say
that__:
I) There is
a direct connection between price & quantity demanded
II) There is an inverse
connection between price & quantity demanded
III) There
is no connection between price & quantity demanded
IV) There is
an inverse connection between price & quantity supplied
5.
The law of supply says
that___:
I) There is a direct connection
between price & quantity supplied
II) There is
an inverse connection between price & quantity supplied
III) There
is no connection between price & quantity supplied
IV) There is
an inverse connection between price & quantity demanded
6.
Which among cannot be
considered as market failure?
I)
Externalities
II) Monopoly
power
III) Public
goods
IV) Perfect competition
7.
What actually the production
possibility frontier (PPF) tells us:
I) The maximum quantity
of a good that can be produced, given the available resources and technology
II) The
minimum quantity of a good that can be produced, given the available resources &
technology
III) The ideal
combination of goods that can be produced, given the available resources &
technology
IV) The quantity
of a good that can be produced with unlimited resources & technology
8.
Which among the below
cannot shift the demand curve?
I) Changes
in consumer tastes and preferences
II) Changes
in the prices of related goods
III) Changes
in consumer income
IV) Changes in the cost
of production
9.
Which among the below
cannot shift the supply curve?
I) Changes
in technology
II) Changes in prices
of related goods
III) Changes
in cost of production
IV) Changes
in the government regulations
10. Price in market economy are determined by:
I) The
government
II) Producers
III)
Consumers
IV) The interaction of
buyers & sellers in the marketplace
11. Who says economy is "the study of the mankind in the
ordinary business of life"?
I) Adam
Smith
II) Alfred
Marshall
III) Lionel
Robbins
IV) John
Maynard Keynes
Answer: I) Adam Smith
12. Who says, economics is "a study of mankind in the
ordinary business of life, it examines that part of the individual & social
action which is most closely associated with the attainment and with the use of
the material requisites of well-being"
I) Adam
Smith
II) Lionel
Robbins
III) John
Stuart Mill
IV) Paul
Samuelson
Answer: III) John
Stuart Mill
13. Who defines the economics as "the science which
studies human conduct as a association or relationship between given ends and
scarce means which have alternative uses"?
I) Lionel
Robbins
II) John
Maynard Keynes
III) Adam
Smith
IV) Alfred
Marshall
Answer: I) Lionel
Robbins
14. Who called economics as "the study of how the societies
use scarce resources to produce valued commodities and distribute among
different people."
I) Adam
Smith
II) Alfred
Marshall
III) Lionel
Robbins
IV) Paul
Samuelson
Answer: IV) Paul
Samuelson
15. Who considers economics as "a social science concerned
primarily with description and analysis of the production, distribution, &
consumption of goods and services"?
I) Alfred
Marshall
II) Adam Smith
III) John
Maynard Keynes
IV) Lionel
Robbins
Answer: I) Alfred
Marshall