Have you micro economics mcq subject in your academic course exam? If yes, you can prepare Micro economics mcq with answer set 5. After all set of mcq, must give online exam quiz and assess your knowledge.
MCQ of Micro economics set 5
Q1. The law of demand can be derived from the law of diminishing marginal utility.
a. True
b. False
Answer
a. True
Q2. Almost all the goods in a market are related goods either by way of complementarity or substitutability.
a. True
b. False
Answer
a. True
Q3. The traditional marginal utility analysis ignored the income – effect assumption of constant marginal utility of money spent.
a. True
b. False
Answer
a. True
Q4. Each point on the indifference curve represents combination of goods that give same level of satisfaction to consumers.
a. True
b. False
Answer
a. True
Q5. Budget line represents different combinations of two goods X and Y which the consumer can buy by spending all his income.
a. True
b. False
Answer
a. True
Q6. The point at which consumer gets maximum satisfaction is referred to as consumer’s equilibrium.
a. True
b. False
Answer
a. True
Q7. The slope of the budget line depends on the price ratio.
a. True
b. False
Answer
a. True
Q8. Marginal Rate of Substitution is the ratio of marginal utilities of two commodities in question.
a. True
b. False
Answer
a. True
Q9. Past costs are unadjusted historical cost data which have been recorded in the books.
a. True
b. False
Answer
a. True
Q10. Replacement cost means the price that would have to be paid currently for acquiring the same plant.
a. True
b. False
Answer
a. True
Q11. Actual costs are also called absolute costs or outlay costs.
a. True
b. False
Answer
a. True
Q12. Average cost is obtained by dividing the total cost by the total quantity produced.
a. True
b. False
Answer
a. True
Q13. Social cost is the total cost to the society on account of production of a good.
a. True
b. False
Answer
a. True
Q14. In a perfect market there are large number of sellers.
a. True
b. False
Answer
a. True
Q15. In a perfect market there is perfect mobility of resources.
a. True
b. False
Answer
a. True
Q16. Under perfect competition the price curve and the marginal revenue curve are the same.
a. True
b. False
Answer
a. True
Q17. For equilibrium MC curve should cut the MR curve from below.
a. True
b. False
Answer
a. True
Q18. In the case of monopoly one firm constitutes the whole industry.
a. True
b. False
Answer
a. True
Q19. In case of monopoly, the marginal revenue is less than the price.
a. True
b. False
Answer
a. True
Q20. In the short-run, a monopolist cannot be in equilibrium if MC cuts the MR curve from below, even if MC=MR.
a. True
b. False
Answer
a. True
Q21. In a monopolistic market, the demand for the product of one producer depends upon the price and the nature of the products of his rivals.
a. True
b. False
Answer
a. True
Q22. A firm under monopolistic competition does not enjoy monopoly profits in the long run even though it charges monopoly price.
a. True
b. False
Answer
a. True
Q23. Both monopolistic competition and perfect competition have firms that are price takers.
a. True
b. False
Answer
a. True
Q24. Because of the number of firms in monopolistic competition no one firm can dominate the market.
a. True
b. False
Answer
a. True
Q25. Price leadership can be seen as collusive oligopoly.
a. True
b. False
Answer
a. True
Q26. The demand curve of an oligopolist is indeterminate.
a. True
b. False
Answer
a. True
Q27. Oligopoly firm may form cartel.
a. True
b. False
Answer
a. True
Q28. Most of the firms are uncertain about their demand curve.
a. True
b. False
Answer
a. True
Q29. Target return pricing is a variant of full cost pricing.
a. True
b. False
Answer
a. True
Q30. Marginal cost pricing permits a manufacturer to develop a far more aggressive pricing policy than does full-cost pricing.
a. True
b. False
Answer
a. True
Q31. Customary prices may be maintained even when products are changed.
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
