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

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b A government bond issued by the government of France.

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cA bond issued by a blue-chip company

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

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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

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bSaving = Rs 200 investment = Rs 100

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c Saving = Rs 100 investment = Rs 200

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dSaving = Rs 0 investment = Rs 0

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Which of the following statements is true ?


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

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b Government bonds pay less interest than comparable corporate bounds

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

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

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A financial intermediary is a middleperson between ?


a buyers and sellerss.

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b husbands and wives.

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cborrowers and lenders.

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d labor unions and firms

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Which of the following is an example of equity finance ?


a Corporate bonds

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bCompany shares

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cAll of these answers are equity finance

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d Government bonds

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View Answer Company shares

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


aEconomic profit

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bAccounting profit

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cNormal profit

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dsupernormal profit

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View Answer supernormal profit

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


a reduces; reduces

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breduces; increases

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cincreases; increases

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dincreases; reduces

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View Answer reduces; increases

Marginal revenue is the ________ when output is __________?


aChange in average revenue, increased

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bChange in total revenue, increase by one unit

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cchange in average revenue, increased by one unit

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d change in total revenue increased

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Firms are assumed to ________ costs and to ________ profits?


aincur, desire

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b pay, make

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ccharge earns

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dminimize, maximize

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View Answer minimize, maximize

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


aMarginal utility

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bAdditional utility

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cSurplus utility

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dBonus utility

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View Answer Marginal utility

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