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.
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Question No : 43
The Hicksian indirect utility function in the form of equation is:
x =f(P)
x =a-bp
Question No : 44
If in the long run, output increases in the same proportion as increase in all the input in the given proportion, this is known as:
Increasing returns to scale
Decreasing returns to scale
Constant returns to scale
Variable returns to scale
Question No : 45
The cost of production is faced by a:
Producer
Consumer
Seller
Firm
Question No : 46
The income consumption curve (ICC) is the locus of points of consumer equilibrium resulting:
Only when the price of commodity X changes
Only when the price of commodity Y changes
Only when the consumers income is varied
None of the above
Question No : 47
A budget line shows:
Price of commodity X in terms of Y
Price of commodity Y in term of X
Income of the consumer
All of the above
Question No : 48
If by doubling all inputs in the long run output is less than double, it is a case of:
Increasing returns to scale
Decreasing returns to scale
Constant returns to scale
Variable returns to scale
Question No : 49
Demand of a commodity is elastic when:
Change in its price causes a proportionately greater change in its quantity demanded
Change in its price does not change its quantity demanded
Change in consumers income causes change in demand
None of the above