Economics Mcqs

A. They will aim to leave the industry
B. Other firms will join the industry
C. The revenue equal total costs
D. No profit is made is accounting terms

A. Reduce output
B. Increase output
C. Leave output where it is:
D. Increase costs

A. Marginal cost is Rs20
B. Average cost rises
C. Variable cost rises by Rs200
D. Average fixed cost was Rs10originally

A. Total cost is falling
B. Total cost is increasing at a falling rate
C. Total cost is falling at a falling rate
D. Total cost is increasing at an increasing rate

A. The Minimum Efficient Scale
B. The Minimum External Scale
C. The Maximum External Scale
D. The Maximum Effective Scale

A. There are no fixed factors of production
B. There are no variable factors of production
C. Utility is maximised when marginal product falls
D. Some factors of production are fixed

A. An increase in demand
B. More government spending
C. Better training of employees
D. Productive inefficiency

A. Constantly increasing
B. Fixed at any moment
C. Constantly decreasing
D. Able to be transferred easily between industries

A. It is not utilizing its resources fully
B. It is being productively efficient
C. It is a mixed economy
D. It is trading other economies

A. Market forces of supply and demand
B. The government
C. The law
D. The public Sector