Quiz  /  Business economics Gate & PSU MCQ Questions With Answers

  • 1. 
    The concept of equilibrium is always explained with reference to prices

  • True
  • False

  • 2. 
    Total utility maximum when:

  • (a) Marginal utility is maximum
  • (b) Marginal utility is Zero
  • (c) Average utility is maximum
  • (d) Average utility is Zero

  • 3. 
    Market situation where there is single seller. There is no close substitute and no free entry and exist. is refer as

  • Perfect Competition
  • Monopoly
  • Oligopoly
  • Monopolistic Competition

  • 4. 
    ---------------- shows various combinations of two products that give same amount of satisfaction:

  • (a) ISO cost curve
  • (b) Indifference curve
  • (c) Marginal utility curve
  • (d) ISO quant

  • 5. 
    At equilibrium, the slope of the indifference curve is:

  • Equal to the slope of budget line
  •  Greater than the slope of budget line
  • Smaller than the slope of budget line
  • None of these

  • 6. 
    Expert Opinion method is also known as

  • Delphi Method
  • Marshall Method
  • Tausing Method

  • 7. 
    Speculation means

  • betting on horses
  • gambling
  • forecasting future prices
  • planning for future purchases

  • 8. 
    Which economist said that money is the measuring rod of utility?

  • A.C Pigou
  • Marshall
  • Adam Smith
  • Robbins

  • 9. 
    If two goods are complementary to each other, cross elasticity demand is said to be "-------------"

  • Positive
  • Neutral
  • Negative
  • Unitary

  • 10. 
    The difference between what a consumer is ready to pay and what he actually pays is:

  • Consumer Surplus
  • Consumer deficit
  • Both
  • None

  • 11. 
    The condition of consumer equilibrium under cardinal approach in case of one commodity is

  • price of commodity should be rising
  • price of commodity should equal to be marginal utility
  • price of commodity should be decreasing
  • none of these

  • 12. 
    When marginal utility from the consumption of a commodity is zero, then the:

  • Total utility is zero
  • Total utility is highest
  • Total utility is rising
  • Total utility is falling.

  • 13. 
    A budget constraints line is a result of:

  • Market price of commodity X
  • Market price of commodity Y
  • Income of the consumer
  • All of these

  • 14. 
    Total utility starts decreasing when --------------.

  • Marginal utility becomes zero
  • Marginal utility is positive
  • Marginal utility becomes negative
  • None of these

  • 15. 
    Economics is the study of

  • how society manages its unlimited resources.
  • how to reduce our wants until we are satisfied.
  • how to fully satisfy our unlimited wants.
  • how to avoid having to make trade-offs.

  • 16. 
    Demand Function explain relationship between demand for Commodity and its___________.

  • Determinants
  • Elasticity
  • Only Price
  • Elements

  • 17. 
    Demand Forecasting is also known as ________Forecasting

  • Sales
  • Production
  • Quantity

  • 18. 
    An indifference curve is always:

  • (a) Concave to the origin
  •  (b) Convex to the origin
  • (c) L – shaped
  • (d) A vertical straight line

  • 19. 
    At equilibrium under ordinal approach the MRS should be equal to

  • MRTS
  • Price Ratio
  • Price
  • Income

  • 20. 
    Marginal utility is a ------ Concept.

  • Cardinal
  • Ordinal
  • Both
  • None
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