Basics of Economics MCQ Question with Answer

Basics of Economics MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

Question No : 22
Which of the following is not a U shaped curve:

Marginal cost curve

Average variable cost curve

Fixed cost curve

Average cost curve

Question No : 23
The average product is given as:

Q.L

Q- L

Q+ L

Q/L

Question No : 24
Efficient allocation of resources is achieved to a greater extent under:

Monopoly

Perfect competition

Monopolistic competition

Oligopoly

Question No : 25
If the supply and demand increases equally, the price will:

Rise

Fall

Remain unchanged

Change depending on respective elasticities

Question No : 26
The equilibrium level of output for the pure monopolist is where:

MR = MC

MR > MC

MR < MC

P < AC

Question No : 27
A firm considering what type of new plant to build is involved in a:

Immediate-run decision

Market period decision

Short-run decision

Long-run decision

Question No : 28
In respect of which of the following category of goods is consumers surplus highest?

Giffen goods

Necessities

Luxuries

Prestige goods