Have you micro economics mcq subject in your academic course exam? If yes, you can prepare Micro economics mcq with answer set 3. After all set of mcq, must give online exam quiz and assess your knowledge.
MCQ of Micro economics set 3
Q1. Economic costs can be calculated at two levels —–
a. micro level and macro level
b. macro level only
c. Both A and B
Answer
a. micro level and macro level
Q2. Marginal cost is the extra cost of producing —–
a. No additional unit
b. one additional unit
c. None of these
Answer
b. one additional unit
Q3. AVC first —– , reaches a minimum and rises thereafter.
a. declines
b. increase
c. Both A and B
Answer
a. declines
Q4. Implicit costs are the costs which go unrecognized by the —–
a. accounting system
b. management system
c. None of these
Answer
a. accounting system
Q5. Capital equipment is a —– factor.
a. fixed
b. variable
c. Both A and B
Answer
a. fixed
Q6. The total cost concept is useful in —– analysis.
a. break even
b. account
c. None of these
Answer
a. break even
Q7. Direct costs are —– costs.
a. finance
b. traceable
c. Both A and B
Answer
b. traceable
Q8. A perfectly competitive firm faces an —– elastic demand curve.
a. infinitely
b. finite
c. None of these
Answer
a. infinitely
Q9. The closing down point is at which the firm covers its —– cost.
a. invariable
b. variable
c. Both A and B
Answer
b. variable
Q10. In the long run all costs are —–
a. variable
b. invariable
c. None of these
Answer
a. variable
Q11. In the long run the best level of output is, where P = —–
a. SMC (Short run marginal cost)
b. LMC (long run marginal cost)
c. None of these
Answer
b. LMC (long run marginal cost)
Q12. The LMC cuts the LAC at its —– point.
a. minimum
b. maximum
c. None of these
Answer
a. minimum
Q13. The —– LRS is generally a feature of rapid growth.
a. rising
b. stable
c. None of these
Answer
a. rising
Q14. The —– of an industry might lead to a fall in prices of some of its input.
a. expansion
b. stable
c. None of these
Answer
a. expansion
Q15. The factors of production are —– to move in perfect competition.
a. free
b. paid
c. None of these
Answer
a. free
Q16. Under monopoly —– firm constitutes the whole industry.
a. multiple
b. one
c. None of these
Answer
b. one
Q17. In monopoly the demand curve for the firm and industry is —–
a. same
b. opposite
c. None of these
Answer
a. same
Q18. In the short run monopolist will continue working so long as price is above the —–
a. sink cost
b. average variable cost
c. None of these
Answer
b. average variable cost
Q19. In monopoly seller may indulge in price —–
a. discrimination
b. cut down
c. None of these
Answer
a. discrimination
Q20. Since there will be no new entry, it is not necessary for the monopolist to reach —– scale.
a. an optimal
b. minimum
c. None of these
Answer
a. an optimal
Q21. If a seller is charging less price in the world market than in the home market, it is called —–
a. Dumping
b. monopoly
c. None of these
Answer
a. Dumping
Q22. In monopoly product has no close —–
a. substitute
b. condition
c. None of these
Answer
a. substitute
Q23. In monopolistic competition the relative market share of all sellers are —–
a. significant
b. insignificant
c. None of these
Answer
b. insignificant
Q24. Under monopolistic competition, the demand or AR curve of an individual firm is a gradually —– curve.
a. falling
b. upward
c. None of these
Answer
a. falling
Q25. As the firm’s AR curve is falling, the price is —– than marginal revenue.
a. lower
b. higher
c. None of these
Answer
b. higher
Q26. Under monopolistic competition the firm has not the ability to collude with respect to price.
a. True
b. False
Answer
b. False
Q27. If a large number of firms are competing, the market could be monopolistic competition or monopoly.
a. True
b. False
Answer
b. False
Q28. Identical product is a characteristic of monopolistic competition.
a. True
b. False
Answer
b. False
Q29. Product differentiation involves making a product that is completely different from the products of competing firms.
a. True
b. False
Answer
b. False
Q30. Locational advantages and managerial talents have nothing to do with entry barriers.
a. True
b. False
Answer
b. False
Q31. Under oligopoly, new entry is easy.
a. True
b. False
Answer
b. False
Q32. Under Hall and Hitch version the demand curve has a kink at the price which is above full cost price.
a. True
b. False
Answer
b. False
Q33. Price leadership is, where firms jointly fix a price and output through agreement.
a. True
b. False
Answer
b. False
Q34. Bertrand’s duopoly model assumes that each seller assumes his rival’s price, instead of his output, to remain constant.
a. True
b. False
Answer
b. False
Q35. Companies adopt penetration pricing strategy when the demand tends to be inelastic.
a. True
b. False
Answer
b. False
Q36. Study of national income would be a part of macro economics.
a. True
b. False
Answer
a. True
Q37. Study of pricing decisions of a firm is a part of micro economics.
a. True
b. False
Answer
a. True
Q38. General equilibrium and partial equilibrium are slightly different concepts.
a. True
b. False
Answer
a. True
Q39. “We should cut taxes in half to increase disposable income levels.” It is a normative statement.
a. True
b. False
Answer
a. True
Q40. Demand for labour is always a derived demand.
a. True
b. False
Answer
a. True
Other Micro Economics Exam MCQ set
- Micro economics mcq with answer set 1
- Micro economics mcq with answer set 2
- Micro economics mcq with answer set 3
- Micro economics mcq with answer set 4
- Micro economics mcq with answer set 5
