» Fundamentals of Economics solved MCQs

Question: Production creates _________ utility. A. Place B. Time C. Form D. Possession Answer» c. Form Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: According to the ‘Law of Demand, demand varies ________ with price. A. Directly B. Indirectly C. Proportionately D. Inversely Answer» d. Inversely Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: On the basis of area, markets are classified into _________ types. A. 2 B. 3 C. 4 D. 5 Answer» b. 3 Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: “Money is what money does”. This definition was given by __________ A. Adam Smith B. Walker C. Robbins D. Robertson Answer» b. Walker Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: The rate at which the commercial banks borrow from the Reserve Bank of India is called as A. REPO B. PLR C. BPLR D. Bank rate Answer» d. Bank rate Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: The ____ states that bad money drives good money out of circulation. A. Law of Demand B. Law of Supply C. Gresham’s Law D. Demand Schedule Answer» c. Gresham’s Law Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: In the long run, a firm in perfect competition earns _____________ A. normal profit only B. abnormal profit C. average profit of past 5 years D. 12.33 per cent profit on capital employed Answer» a. normal profit only Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: Which one of the following functions of commercial banks include collection of cheques,drafts, bill of exchange etc. of their customers from other banks? A. Agency Function B. Creation of Credit C. Payment of Loans and Advances D. General Utility Function Answer» a. Agency Function Note: The above multiple-choice question is for all general and…

Question: Micro-economics deals with the ___________ A. economic behavior of the individual B. economy as a whole C. trade relations D. economic growth of the society Answer» a. economic behavior of the individual Note: The above multiple-choice question is for all general and Competitive Exams in India. 

Question: The total ___________ curve will be a horizontal line. A. Variable cost B. Fixed cost C. Marginal cost D. Cost Answer» b. Fixed cost Note: The above multiple-choice question is for all general and Competitive Exams in India.