| 1 |
Which of the following is a subject of microeconomic study? |
Economics/Business Economics
Meaning and scope of microeconomics |
Easy |
| 2 |
The central problem "what to produce" is mainly about deciding: |
Economics/Business Economics
Meaning and scope of microeconomics |
Easy |
| 3 |
A country has to choose between labour-intensive and capital-intensive methods to build roads. Which central … |
Economics/Business Economics
Meaning and scope of microeconomics |
Medium |
| 4 |
A production possibility curve is concave to the origin because: |
Economics/Business Economics
Meaning and scope of microeconomics |
Medium |
| 5 |
An economy's PPC has these combinations (guns, wheat): (0, 100), (1, 95), (2, 85), (3, 70). What is the margi… |
Economics/Business Economics
Meaning and scope of microeconomics |
Hard |
| 6 |
Total utility from a good is at its maximum when marginal utility is: |
Economics/Business Economics
Consumer’s equilibrium: utility approach |
Easy |
| 7 |
The law of diminishing marginal utility states that: |
Economics/Business Economics
Consumer’s equilibrium: utility approach |
Easy |
| 8 |
Total utility from 1, 2 and 3 cups of tea is 20, 35 and 45 utils. What is the marginal utility of the 3rd cup? |
Economics/Business Economics
Consumer’s equilibrium: utility approach |
Medium |
| 9 |
A consumer buying two goods finds that MUx ÷ Px is greater than MUy ÷ Py. To raise total utility, the consume… |
Economics/Business Economics
Consumer’s equilibrium: utility approach |
Medium |
| 10 |
The marginal utility of money is 4 utils per rupee and good X costs ₹5. MU of successive units of X is 40, 32… |
Economics/Business Economics
Consumer’s equilibrium: utility approach |
Hard |
| 11 |
With good 1 on the horizontal axis, the slope of the budget line is: |
Economics/Business Economics
Consumer’s budget and optimal choice |
Easy |
| 12 |
If a consumer's income rises while both prices stay the same, the budget line: |
Economics/Business Economics
Consumer’s budget and optimal choice |
Easy |
| 13 |
A consumer has ₹100. Good 1 costs ₹5 and good 2 costs ₹10. What is the maximum quantity of good 1 she can buy? |
Economics/Business Economics
Consumer’s budget and optimal choice |
Medium |
| 14 |
At the consumer's optimum bundle in the indifference curve approach: |
Economics/Business Economics
Consumer’s budget and optimal choice |
Medium |
| 15 |
Income is ₹120, p₁ = ₹4 and p₂ = ₹6. If p₁ falls to ₹3, which bundle (x₁, x₂) was outside the budget set befo… |
Economics/Business Economics
Consumer’s budget and optimal choice |
Hard |
| 16 |
A movement along a demand curve is caused by a change in: |
Economics/Business Economics
Demand |
Easy |
| 17 |
Tea and coffee are generally treated as: |
Economics/Business Economics
Demand |
Easy |
| 18 |
If the price of petrol rises sharply, the demand curve for petrol cars is likely to: |
Economics/Business Economics
Demand |
Medium |
| 19 |
When a household's income rises, its demand for an inferior good: |
Economics/Business Economics
Demand |
Medium |
| 20 |
A market has two consumers with demand q₁ = 10 − p and q₂ = 15 − 2p. What is market demand at p = ₹4? |
Economics/Business Economics
Demand |
Hard |
| 21 |
If demand for a good is perfectly inelastic, its demand curve is: |
Economics/Business Economics
Price elasticity of demand |
Easy |
| 22 |
Demand for necessities such as salt is generally: |
Economics/Business Economics
Price elasticity of demand |
Easy |
| 23 |
Price of a good rises from ₹10 to ₹12 and quantity demanded falls from 50 to 40 units. What is the price elas… |
Economics/Business Economics
Price elasticity of demand |
Medium |
| 24 |
The price of a good falls but total expenditure on it remains unchanged. Demand is: |
Economics/Business Economics
Price elasticity of demand |
Medium |
| 25 |
The demand function is q = 20 − 2p. What is the price elasticity of demand (absolute value) at p = ₹6? |
Economics/Business Economics
Price elasticity of demand |
Hard |
| 26 |
In the long run, a firm can: |
Economics/Business Economics
Production function |
Easy |
| 27 |
Total product of labour is at its maximum when marginal product of labour is: |
Economics/Business Economics
Production function |
Easy |
| 28 |
TP of labour for 1, 2, 3 and 4 workers is 10, 24, 36 and 44 units. What is the average product of labour when… |
Economics/Business Economics
Production function |
Medium |
| 29 |
When marginal product of labour is greater than average product, average product is: |
Economics/Business Economics
Production function |
Medium |
| 30 |
A firm doubles all its inputs and its output rises by 150%. This shows: |
Economics/Business Economics
Production function |
Hard |
| 31 |
Which of the following is a fixed cost for a firm in the short run? |
Economics/Business Economics
Cost concepts |
Easy |
| 32 |
The average fixed cost curve has the shape of a: |
Economics/Business Economics
Cost concepts |
Easy |
| 33 |
A firm's TC at outputs 0, 1, 2 and 3 is ₹60, ₹90, ₹110 and ₹140. What is AVC at 2 units of output? |
Economics/Business Economics
Cost concepts |
Medium |
| 34 |
The marginal cost curve cuts the average cost curve at: |
Economics/Business Economics
Cost concepts |
Medium |
| 35 |
Average cost of producing 10 units is ₹20 and of producing 11 units is ₹21. What is the marginal cost of the … |
Economics/Business Economics
Cost concepts |
Hard |
| 36 |
Average revenue of a firm is always equal to: |
Economics/Business Economics
Revenue concepts |
Easy |
| 37 |
For a firm in perfect competition, the total revenue curve is: |
Economics/Business Economics
Revenue concepts |
Easy |
| 38 |
A firm can sell 5 units at ₹20 each or 6 units at ₹19 each. What is the marginal revenue of the 6th unit? |
Economics/Business Economics
Revenue concepts |
Medium |
| 39 |
When marginal revenue is zero, total revenue is: |
Economics/Business Economics
Revenue concepts |
Medium |
| 40 |
A firm's average revenue is AR = 50 − 2Q. What is marginal revenue at Q = 10? |
Economics/Business Economics
Revenue concepts |
Hard |
| 41 |
The conditions for a producer's equilibrium under the MR–MC approach are: |
Economics/Business Economics
Producer’s equilibrium |
Easy |
| 42 |
At its current output a firm finds that MR is greater than MC. To raise profit it should: |
Economics/Business Economics
Producer’s equilibrium |
Easy |
| 43 |
A price-taking firm sells at ₹10. MC of units 1 to 5 is ₹10, ₹7, ₹6, ₹10 and ₹14. What is its equilibrium out… |
Economics/Business Economics
Producer’s equilibrium |
Medium |
| 44 |
Why is MR = MC alone not enough for producer's equilibrium? |
Economics/Business Economics
Producer’s equilibrium |
Medium |
| 45 |
Price is ₹10 per unit. TC at outputs 0 to 4 is ₹10, ₹16, ₹20, ₹25 and ₹37. Find the profit-maximising output … |
Economics/Business Economics
Producer’s equilibrium |
Hard |
| 46 |
A firm in perfect competition is called a price taker because: |
Economics/Business Economics
Features of perfect competition |
Easy |
| 47 |
The demand curve facing an individual firm under perfect competition is: |
Economics/Business Economics
Features of perfect competition |
Easy |
| 48 |
Which feature of perfect competition ensures that firms earn only normal profit in the long run? |
Economics/Business Economics
Features of perfect competition |
Medium |
| 49 |
Why can a firm under perfect competition not sell at a price above the market price? |
Economics/Business Economics
Features of perfect competition |
Medium |
| 50 |
A firm in a supposedly perfectly competitive market starts advertising its brand of rice as superior to other… |
Economics/Business Economics
Features of perfect competition |
Hard |