Economics MCQ | HSC Maharashtra Board

 

Economics


Economics MCQ | HSC


Economics HSC Maharashtra Board Multiple Choice Questions With Answers


Q.1) In the law of diminishing marginal utility, Alfred Marshall assumes that the marginal utility of money ________ 

A) Increases
B) Remains constant
C) Decreases
D) Rises and then falls  

Ans : Remains constant

Q.2) As per the law of diminishing marginal utility, the measurement of utility is assumed to be _____.

A) Ordinal
B) Cardinal
C) Both ordinal and cardinal
D) None of the above

Ans : Cardinal

Q.3) MU of the commodity becomes negative when TU of a commodity is ______.

A) Rising
B) Constant
C) Falling
D) Zero

Ans : Falling

Q.4) Point of Satiety means _______

A) TU is rising and MU is falling
B) TU is falling and MU is negative
C) TU is maximum and MU is zero
D) MU is falling and TU is rising

Ans : TU is maximum and MU is zero

Q.5) When MU is falling, TU is _______.

A) Rising
B) Falling
C) Not changing
D) Maximum

Ans : Rising

Q.6) The relationship between demand for a good and price of its substitute is ______.

A) Direct
B) Inverse
C) No effect
D) Can be direct and inverse

Ans : Direct

Q.7) The relationship between income and demand for inferior goods is ______.

A) Direct
B) Inverse
C) No effect
D) Can be direct and inverse

Ans : Inverse

Q.8) Symbolically, the functional relationship between Demand and Price can be expressed as ______.

A) Dx = f(Px)
B) Dx = f(Pz)
C) Dx = f(y)
D) Dx = f(T)

Ans : Dx = f(Px)

Q.9) When less units are demanded at high price it shows ______.

A) Increase in demand
B) Expansion of demand
C) Decrease in demand
D) Contraction in demand

Ans : Contraction in demand

 Q.10) Price elasticity of demand on a linear demand curve at the X-axis is
________.

A) Zero
B) One
C) Infinity
D) Less than one

Ans : Zero

Q.11) Price elasticity of demand on a linear demand curve at the Y-axis is equal to ________.

A) Zero
B) One
C) Infinity
D) Greater than one

Ans : Infinity

Q.12) Demand curve is parallel to X-axis, in the case of ______.

A) Perfectly elastic demand
B) Perfectly inelastic demand
C) Relatively elastic demand
D) Relatively inelastic demand

Ans : Perfectly elastic demand

Q.13) Ed = 0 in case of ______.

A) Luxuries
B) Normal goods
C) Necessities
D) Comforts

Ans : Necessities

Q.14) When the percentage change in quantity demanded is more than the percentage change in price, the demand curve is ______.

A) Flatter
B) Steeper
C) Rectangular
D) Horizontal

Ans : Flatter

Q.15) When the supply curve is upward sloping, its slope is _______.

A) Positive
B) Negative
C) First positive then negative
D) Zero

Ans : Positive

Q.16) An upward movement along the same supply curve shows _______.

A) Contraction of supply
B) Decrease in supply
C) Expansion of supply
D) Increase in supply

Ans : Expansion of supply

Q.18) A rightward shift in supply curve shows _______.

A) Contraction of supply
B) Decrease in supply
C) Expansion of supply
D) Increase in supply

Ans : Increase in supply

Q.19) Other factors remaining constant, when less quantity is supplied only due to a fall in price, it shows ________.

A) Contraction of supply
B) Decrease in supply
C) Expansion of supply
D) Increase in supply

Ans : Contraction of supply

Q.20) Net addition made to the total revenue by selling an extra unit of a commodity is ______.

A) Total Revenue
B) Marginal Revenue
C) Average Revenue
D) Marginal Cost

Ans : Marginal Revenue

Q.21) While estimating national income, we include only the value of final goods and services in order to _________.

A) Make computation easier
B) Avoid double counting
C) Maximize national welfare of the people
D) Evaluate the total economic performance of a nation

Ans : Avoid double counting

Q.22) NDP is obtained by ___________.

A) Deducting depreciation from GNP
B) Deducting depreciation from GDP
C) Including depreciation in GDP
D) Including depreciation in GNP

Ans : Deducting depreciation from GDP

Q.23) In India, national income is estimated using _________.

A) Output method
B) Income method
C) Expenditure method
D) Combination of output and income method

Ans : Combination of output and income method

Q.24) Development financial institutions were established to _________.

A) Provide short term funds.
B) Develop industry, agriculture and other key sectors.
C) Regulate the money market.
D) Regulate the capital market.

Ans : Develop industry, agriculture and other key sectors.

Q.25) Money market faces shortage of funds due to ___________.

A) Inadequate savings
B) Growing demand for cash
C) Presence of unorganized sector
D) Financial mismanagement

Ans : Inadequate savings

Q.26) Individual investors have lost confidence in the capital market due to __________.

A) Lack of financial instruments
B) High transaction costs
C) Low returns
D) Financial scams

Ans : Financial scams

Q.27) Commercial banks act as intermediaries in the financial system to ___________.

A) Make profits
B) Accelerate the country's economic growth
C) Mobilize the savings and allocating them to various sectors of the economy
D) Control the credit

Ans : Mobilize the savings and allocating them to various sectors of the economy

Q.28) Monopolistic competition differs from perfect competition primarily becaus—

A) In monopolistic competition firms can differentiate their products.
B) In perfect competition firms can differentiate their products.
C) In monopolistic competition entry into the industry is blocked.
D) In monopolistic competition there are relatively few barriers to entry.

Ans : In monopolistic competition firms can differentiate their products.

Q.29) The firm and the industry are one and the same in:

A) Monopolistic competition
B) Monopoly
C) Duopoly
D) Oligopoly

Ans : Monopoly

Q.30) The demand curve of Oligopoly is?

A) Kinked
B) Vertical
C) Horizontal
D) Rising left to Right

Ans : Kinked

Q.31) Under monopoly form of market, TR is maximum when

A) MR is maximum
B) MR < 0
C) MR > 0
D) MR is zero

Ans : MR is zero

Q.32) Market which has two firms is known as

A) Duopoly
B) Monopolistic Competition
C) Oligopoly
D) None of These

Ans : Duopoly

Q.33) One characteristic not typical of Oligopolistic industry is its:

A) Horizontal demand curve.
B) Too much importance to non-price competition.
C) Price leadership.
D) A small number of firms in the industry.

Ans : Horizontal demand curve.

Q.34)  In perfect competition, a company earns an abnormal profit when average revenue exceeds the?

A) Total revenue
B) Average cost
C) Total fixed cost
D) Marginal revenue

Ans : Average cost

Q.35) Which one is a merit of the flexible exchange rate?

A) Simple System
B) Continuous Adjustments
C) Improves Balance of Payments
D) All the above

Ans : All the above

Q.36)  In perfect competition, when the marginal revenue and marginal cost are equal, profit it?

A) Zero
B) Average
C) Maximum
D) Negative

Ans : Maximum

 Q.37) Who is known as the father of modern macroeconomics?

A) Adam Smith
B) J.M.Keynes
C) Samuelson
D) Hicks

Ans : J.M.Keynes

38) Which of the following is studied under Micro Economics ?

A) Individual unit
B) Economic Aggregate
C) National Income
D) None of these

Ans : None of these

Q.39) Macro-static equilibrium implies:

A) A complete absence of change
B) A change at an unchanged rate
C) A change in only absolute values
D) None of these

Ans : A complete absence of change

Q.40) Which of the following is studied under Macro Economics ?

A) National Income
B) Full. Employment
C) Total Production
D) All of these

Ans : All of these

Q.41) What is known as the study of individual units?

A) Macroeconomics
B) Microeconomics
C) Income and Employment Theory
D) Development economics

Ans : Microeconomics

42) When TR increases at constant rate, MR should be:

A) Increasing  
B) Decreasing
C) Constant
D) Zero

Ans : Constant

Q.43) Net investment is equal to

A) Gross investment + depreciation
B) Gross investment – depreciation
C) Gross investment × depreciation
D) Gross investment ÷ depreciation

Ans : Gross investment – depreciation

 Q.44) Example of micro economic variable is:

A) Wholesale price index
B) National income
C) Market demand
D) Aggregate demand

Ans : Market demand

Q.45) Study of aggregates is known as _________

A) Macroeconomics
B) Microeconomics
C) Price theory
D) Factor price determination

Ans : Macroeconomics

Q.46) What is the name of the book written by J.M. Keynes?

A) Wealth of Nation
B) Political economy
C) The General Theory of Employment, Interest and Money
D) None of these

Ans : The General Theory of Employment, Interest and Money

Q.47) When was the famous book of Prof. Keynes published?

A) 1930
B) 1931
C) 1936
D) 1940

Ans : 1936

Q.48)  In which kind of market, a firm is a price- taker?

A) Perfect Competition
B) Monopoly
C) Monopolistic competition
D) Oligopoly

Ans : Perfect Competition

Q.49) Price of a goods is determined at a point where :

A) Demand > Supply
B) Demand < Supply
C) Demand = Supply
D) None of these

Ans : Demand = Supply

Q.50) Slope of production curve is:

A) A straight line
B) Convex to the point of origin ‘O’
C) Concave to the point of ‘O’
D) None of these

Ans : Concave to the point of ‘O’

 


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