Economics GK
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3 Micro economics deals with
A
the circular flow of income
B
the decision making of a single economic variable like demand
C
understanding unemployment
D
economic growth
4 Movement along the same demand curve is know as
A
Extension and Contraction
of Demand
B
Increase and Decrease of
Demand
C
Contraction of supply
D
Increase of supply
5 Transfer earning or alternative cost is otherwise known as
A
Variable cost
B
Implicit cost
C
Explicit cost
D
Opportunity cost (economic
cost)
6 The ‘break-even point’ is where
A
marginal revenue equals
marginal cost
B
average revenue equals average cost
C
total revenue equals total
cost
D
None of these
7 Purchasing Power Parity theory is related with
A
Interest rate
B
Bank rate
C
Wage rate
D
Exchange rate
9 Under which market condition do firms have excess capacity?
A
Perfect competition
B
Monopolistic competition
C
Duopoly
D
Oligopoly
10 The most distinguishing feature of oligopaly is :
A
number of firms
B
interdependence
C
negligible influence on price
D
price leadership
11 The relationship between price of a commodity and the demand for it
A
is a positive relationship
B
is an inverse relationship
C
They are independent of
each other
D
They do not have any relationship
12 Division of labour is the result of :
A
Complicated work
B
excessive pressure
C
excess supply of labour
D
specialisation
13 The demand curve facing a perfectly competitive firm is :
A
downward sloping
B
perfectly inelastic
C
a concave curve
D
perfectly elastic
