Economics MCQs

Page No. 343

Which of the following financial market securities would probably pay the highest interest rate ?


aA bond issued by a startup company


b A government bond issued by the government of France.


cA bond issued by a blue-chip company


dAn investment funds with portfolio of corporate bonds issued by blue chip companies



If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?


aSaving = Rs 300 investment = Rs 300


bSaving = Rs 200 investment = Rs 100


c Saving = Rs 100 investment = Rs 200


dSaving = Rs 0 investment = Rs 0



Which of the following statements is true ?


aLong-term bonds tend to pay less interest than short-term bonds


b Government bonds pay less interest than comparable corporate bounds


cInvestment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund


d A stock index is a directory used to locate information about selected stocks.



A financial intermediary is a middleperson between ?


a buyers and sellerss.


b husbands and wives.


cborrowers and lenders.


d labor unions and firms



Which of the following is an example of equity finance ?


a Corporate bonds


bCompany shares


cAll of these answers are equity finance


d Government bonds


View Answer Company shares

A firm that makes profit in addition to normal profit is making ?


aEconomic profit


bAccounting profit


cNormal profit


dsupernormal profit


View Answer supernormal profit

An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?


a reduces; reduces


breduces; increases


cincreases; increases


dincreases; reduces


View Answer reduces; increases

Marginal revenue is the ________ when output is __________?


aChange in average revenue, increased


bChange in total revenue, increase by one unit


cchange in average revenue, increased by one unit


d change in total revenue increased



Firms are assumed to ________ costs and to ________ profits?


aincur, desire


b pay, make


ccharge earns


dminimize, maximize


View Answer minimize, maximize

The extra utility from consuming one more unit of a good is called ?


aMarginal utility


bAdditional utility


cSurplus utility


dBonus utility


View Answer Marginal utility

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