Economics MCQs

Page No. 177

uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?


a2

✓


b10

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c1/2

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d 5

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View Answer 2

indifference curves for perfect substitutes are ?


aright angles

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bbowed outward

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cstraight lines

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dnonexistent

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View Answer straight lines

The limit on the consumption bundles that a consumer can afford is known as ?


aan indifference curve

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b the budget constraint

✓


cthe marginal rate of substitution

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dthe consumption limits

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For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?


aSMC, LMC

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bSMC above SAVC, LMC above LAC

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cSMC below SAVC, LMC above LAC

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dSMC below SAVC, LMC bellow LAC

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In the short run a firm will produce zero output if ?


a price is greater than short run average total cost

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b price is between short run average total cost and short run average variable cost

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cprice is less than short run average variable cost

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dprofit is zero

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Short run average total costs are equals to the sum of ____ and _____?


aShort run opportunity costs, profit

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bShort run variable costs, profit

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cShort run average variable costs, profit

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dShort run average variable costs, profit run average fixed costs

✓



When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?


agreater than average cost, greater than average cost

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bless than average cost, greater than average cost

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c less than average cost, less than average cost

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d greater than average cost, less than average cost

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If a long run average cost curve is falling form left to right this is an example of ?


aincreasing returns to scale

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bdecreasing returns to scale

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cconstant returns to scale

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dthe minimum efficient scale

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In monopolistic competition ?


aThere are few sellers

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bThere are few buyers

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cThere is one seller

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d There are many sellers

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View Answer There is one seller

If a firm takes over a competitor then, according to porter’s 5 forces model ?


aBuyer power is higher

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bSupplier power is higher

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cSubstitute threat is higher

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dRivalry is lower

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