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- 1. Multiple Choice
Which of the following curve also represents price line?
a. Marginal revenue curve
b. Marginal cost curve
c. Average cost curve
d. Average revenue curve
- 2. Multiple Choice
When marginal revenue is zero, total revenue is---
a. Maximum
b. Minimum
c. Zero
d. Decreasing
- 3. Multiple Choice
Total revenue equals -----
a. Price divided by total quantity sold
b. Price plus Total quantity
c. Price minus total quantity
d. Price multiplied with total quantity sold
- 4. Multiple Choice
A formula for the calculation of Marginal Revenue is---
a. Total revenue divided by quantity sold
b. Change in total revenue divided by change in quantity sold
c. Total revenue multiplied by average revenue
d. Average revenue multiplied by price
- 5. Multiple Choice
When marginal revenue becomes negative, the total revenue--
a. Decreases
b. Increases
c. Remains constant
d. Becomes zero
- 6. Multiple Choice
Total cost is obtained by adding
a. Total variable cost and total fixed cost
b. Marginal cost and average cost
c. Total variable cost and average cost
d. Average cost plus total fixed cost
- 7. Multiple Choice
______________ is that part of the total cost which does not change with output
a. Total variable cost
b. Marginal cost
c. Average cost
d. Total Fixed cost
- 8. Multiple Choice
Which of the following is an example of the fixed cost?
a. Contractual rent
b. Cost of raw material
c. Cost of water
d. Transport cost
- 9. Multiple Choice
Which of the following cost is also known as ‘Overhead cost’?
a. Marginal cost
b. Average cost
c. Total fixed cost
d. Total variable cost
- 10. Multiple Choice
Which of the following is also known as ‘Prime Cost’?
a. Average cost
b. Total variable cost
c. Average variable cost
d. Total fixed cost
- 11. Multiple Choice
Which of the statement is correct, (i) There is a direct relation between output and total variable cost (ii) the total fixed cost also varies with the level of output
a. (i) is correct
b. (ii) is correct
c. (i) and (ii) both are correct
d. (i) and (ii) are incorrect
- 12. Multiple Choice
The total cost curve can be drawn ----
a. from the origin
b. from a particular point on Y axis
c. as a horizontal line
d. as a vertical line
- 13. Multiple Choice
At zero level of output—
a. Total cost = Total fixed cost
b. Total cost = Total variable cost
c. Average cost = Marginal cost
d. All of these
- 14. Multiple Choice
Which of the cost curve is in the shape of rectangular hyperbola?
a. Average variable cost
b. Average Fixed Cost
c. Marginal cost
d. Total cost
- 15. Multiple Choice
By dividing total variable cost with the output, we obtain
a. Average cost
b. Average fixed cost
c. Average variable cost
d. Marginal cost
- 16. Multiple Choice
Which of the following cost curve is ‘U’ shaped?
a. Average fixed cost curve
b. Average cost curve
c. Total cost curve
d. Total fixed cost curve
- 17. Multiple Choice
Which of the statement is correct, (i) The reason for the ‘U’ shaped average cost curve is due to economies and diseconomies of scale.,(ii) Average cost can never be negative
a. (i) is correct
b. (ii) is correct
c. (i) and (ii) both are correct
d. (i) or (ii) are not correct
- 18. Multiple Choice
Which of the cost curve is known as ‘Envelope curve’?
a. Long run marginal cost curve
b. Long run average cost curve
c. Short run average cost curve
d. Marginal cost curve
- 19. Multiple Choice
Which of the cost is also known as accounting cost?
a. Implicit cost
b. Explicit cost
c. Both (i) and (ii)
d. None of the above
- 20. Multiple Choice
Accounting cost plus implicit cost is known as-------.
a. Opportunity cost
b. Marginal cost
c. Economic cost
d. Sunk cost
- 21. Multiple Choice
Which of the following cost is an example of implicit cost
a. Cost of raw material purchased
b. Cost of machinery
c. Rent paid to the landlord
d. Salary of family member working as labour in own firm
- 22. Multiple Choice
Which of the statement is correct, (i) In the long run TC curve is influenced by the slope of TVC curve, (ii) TC = TFC + TVC
a. (i) is correct
b. (ii) is correct
c. (i) and (ii) are correct
d. (i) and (ii) ate incorrect
- 23. Multiple Choice
The cost of producing an extra unit of output is the---
a. Total cost
b. Marginal cost
c. Fixed cost
d. Variable cost
- 24. Multiple Choice
____________ cost is considered as notional idea.
a. Opportunity cost
b. Explicit cost
c. Implicit cost
d. Sunk cost
- 25. Multiple Choice
________________ of a given economic resource is the forgone benefits from the next best alternative use of that resource.
a. Sunk cost
b. Opportunity cost
c. Implicit cost
d. Explicit cost
- 26. Multiple Choice
The downward slope of the average cost curve is due to---
a. Decreasing returns to scale
b. Increasing returns to scale
c. Constant returns to scale
d. None of the above
- 27. Multiple Choice
The knowledge of ____________ concept is useful for efficient utilization of the resources
a. Sunk cost
b. Opportunity cost
c. Accounting cost
d. Implicit cost
- 28. Multiple Choice
The shape of the firm's marginal revenue curve is horizontal or downward sloping depends on ______________
a. Level of cost of production
b. Level of production
c. Number of competitors
d. None of these
- 29. Multiple Choice
The distinction between variable cost and fixed cost is relevant only in _____________
a. long period
b. short period
c. medium term
d. mixed period
- 30. Multiple Choice
In order to maximise profit, a firm must minimise its _________________ cost.
Economic cost
Accounting Cost
Fixed Cost
Usage of fixed factors
- 31. Multiple Choice
The Curve A represents ______________
TR curve in Imperfect Competion
AR curve in Imperfect Competion
TR curve in Perfect Competion
AR curve in Perfect Competion
- 32. Multiple Choice
The curve that cuts the x-axis is known as ______________________
TR Curve
MR Curve
AR Curve
None of these
- 33. Multiple Choice
‘Money is what money does’, whose definition is this?
F. A. Walker
G. Crowther
D. H. Robertson
J. M. Keynes
F. A. Walker
G. Crowther
D. H. Robertson
J. M. Keynes
- 34. Multiple Choice
Measure of Value is considered to be the ______________ function of money.
Primary
Secondary
Contingent
None of these
- 35. Multiple Choice
There is ____________ relationship between value of money and Quantity of Money
Inverse
Direct
Both inverse and direct
None of these
- 36. Multiple Choice
The proponent of Quantity Theory of Money is ____________________
Irving Fisher
Alfred Marshall
A. C. Pigou
D. H. Robertson
- 37. Multiple Choice
The Cash Balance Approach to the Value of Money is also known as ____________
Fisher’s Quantity Theory of Money
Cambridge Version of Quantity Theory of Money
The Equation of Exchange
None of these
- 38. Multiple Choice
Who was of the opinion that ‘Price level is a passive element’?
Alfred Marshall
Irving Fisher
D. H. Robertson
David Ricardo
- 39. Multiple Choice
Which of the following is also known as ‘Narrow Money’ measure?
M0
M1
M2
M3
- 40. Multiple Choice
Who regarded ‘P’ as the ‘Value of Money’ in the Cash Balance Approach?
D. H. Robertson
J. M. Keynes
Alfred Marshall
A. C. Pigou
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