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 : 36
The real income of a consumer is income in terms of:

Goods

Goods and survices

Goods and survices it can purchased

Monetary units

Question No : 37
Cartel is associated with:

Collusive oligopoly

Non-collusive oligopoly

Cartel

Perfect competition

Question No : 38
In market sharing cartel model, cartel determines the shares of:

the individuals

industry

firms

associations

Question No : 39
When elasticity of demand is greater than one (e >1), then following the formula MR=P[1-1/e], the MR will:

Positive

Negative

Zero

None of the above

Question No : 40
Repetition of a game (Repeated Game):

Yields the same outcome over and over

Can result in behavior that is different from what it would be if the game were played once

Is not possible

Makes cooperative games into noncooperative games

Question No : 41
In cournot model, during the process of adjustment, the number of firms:

Donot change

Change

Both a and b

None of the above

Question No : 42
Law of Returns to Scale shows:

Technical relationship between input of a variable factor and the resulting output

Any economic relationship between input and output

An output maximizing relationship

A relationship with input changing and corresponding changes in output