Isoquant shows combinations of?
- Goods
- Inputs
- Prices
- Costs
Answer: Inputs
Different combinations of inputs producing the same output.
Economics – MCQ – GK Questions
Free practice for SSC, UPSC, Banking & Railway exams. No login required.
Category
Difficulty
Type
Per page
Short run has at least one ___ factor.
- Variable
- Fixed
- Sunk
- None
Answer: Fixed
In the short run, some inputs cannot be changed.
Monopsony is a market with?
- One seller
- One buyer
- Two sellers
- Many buyers
Answer: One buyer
A single buyer controls the entire market demand.
Price discrimination is possible in?
- Perfect competition
- Monopoly
- Oligopoly
- Monopolistic
Answer: Monopoly
Requires market control and market segmentation.
Kinked demand curve model is for?
- Monopoly
- Perfect competition
- Oligopoly
- Monopsony
Answer: Oligopoly
Explains price rigidity in an oligopolistic market.
Perfect competition has?
- Differentiated products
- Homogeneous products
- Single seller
- Barriers
Answer: Homogeneous products
All firms produce identical/homogeneous products.
Arc elasticity uses?
- Derivative
- Mid-point method
- Percentage method
- Geometric method
Answer: Mid-point method
Uses the average of initial and final values.
Price elasticity > 1 means demand is?
- Inelastic
- Elastic
- Unitary
- Perfectly inelastic
Answer: Elastic
Ed > 1 indicates relatively elastic demand.
Slope of indifference curve is?
- MRS
- MRT
- MPC
- MPS
Answer: MRS
Marginal Rate of Substitution represents the slope.
Marginal utility is zero when total utility is?
- Zero
- Minimum
- Maximum
- Negative
Answer: Maximum
Total utility peaks when marginal utility becomes zero.
Point elasticity formula uses?
- Percentage change
- Derivative
- Mid-point
- Logarithm
Answer: Derivative
Point elasticity uses calculus/derivative at a specific point.
Cross elasticity of demand for substitutes is?
- Positive
- Negative
- Zero
- Infinite
Answer: Positive
If the price of one rises, demand for the other rises.
Exception to law of demand?
- Normal goods
- Giffen goods
- Luxuries
- Substitutes
Answer: Giffen goods
Giffen goods have an upward sloping demand curve.
Law of demand shows?
- Inverse price-demand
- Direct price-demand
- Income-demand
- None
Answer: Inverse price-demand
Demand falls as price rises, ceteris paribus.