Economics Fundamentals MCQs (Chapterwise Multiple Choice Questions)

Situational characteristics related to time are known as _____.

Temporal

Sequential

Atmospheric

Spatial

Epistemic

Answer & Explanation

Correct Answer: Temporal

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_______________ is a tariff that maximizes a country

Prohibitive tariff

Optimum tariff

Effective tariff

Protective tariff

Answer & Explanation

Correct Answer: Optimum tariff

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An economy in which two distinct economic systems marked by varying levels of technological advancement and development co-exist is known as a:

Sectoral economy

Dual economy

Pluralistic economy

Regional economy

Answer & Explanation

Correct Answer: Dual economy

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_____________ is a deliberate downward adjustment in the official exchange rates of a country relative to a foreign reference currency.

Devaluation

Depreciation

Revaluation

Redenomination

Answer & Explanation

Correct Answer: Devaluation

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Which of the four equations given below is INCORRECT?

National income = Consumption + Investment

National income = Effective demand consumption + Savings

National income = Consumption + Savings

National income = Gross National Product

Answer & Explanation

Correct Answer: National income = Gross National Product

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_____________ is a situation in which different sectors of an economy experience simultaneous and coordinated expansion.

Deflation

Economic efficiency

Opportunity cost

Balanced Growth

Answer & Explanation

Correct Answer: Balanced Growth

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Marginal cost is average variable cost when .

Marginal costs must be increasing; average total

Equal to; average variable cost is minimized.

Both

None of these

Answer & Explanation

Correct Answer: Equal to; average variable cost is minimized.

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Fixed and variable costs are distinguished from each other in terms of:

Whether it is possible to change the costs during the life of the plant.

Whether the costs are contracted legally or not.

Whether the costs are taken into account or not when calculating the total costs.

Whether the costs vary or remain unchanged with the quantity or output produced in the short run.

Answer & Explanation

Correct Answer: Whether the costs vary or remain unchanged with the quantity or output produced in the short run.

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_____________ refers to the change in the output of a firm or industry in the long run, when all inputs are increased or decreased simultaneously in the same ratio.

Returns to scale

Constant returns to scale

Decreasing returns to scale

None of the above

Answer & Explanation

Correct Answer: Returns to scale

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The vertical distance between the average total cost curve and the average variable cost curves tends to __________ as the production increases beyond a point.

Diminish

Increase

Remain constant

Answer & Explanation

Correct Answer: Diminish

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Economics Fundamentals Quick Quiz

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Economics Fundamentals MCQ

Economics Fundamentals Quick Quiz

Situational characteristics related to time are known as _____.

_______________ is a tariff that maximizes a country

An economy in which two distinct economic systems marked by varying levels of technological advancement and development co-exist is known as a:

_____________ is a deliberate downward adjustment in the official exchange rates of a country relative to a foreign reference currency.

Which of the four equations given below is INCORRECT?

_____________ is a situation in which different sectors of an economy experience simultaneous and coordinated expansion.

Marginal cost is ________ average variable cost when ________.

Fixed and variable costs are distinguished from each other in terms of:

_____________ refers to the change in the output of a firm or industry in the long run, when all inputs are increased or decreased simultaneously in the same ratio.

The vertical distance between the average total cost curve and the average variable cost curves tends to __________ as the production increases beyond a point.

Marginal cost is average variable cost when .