Question:

The word micro was first used in Economics by:

A.

Keynes

B.

Ragnar Frisch

C.

J.R.Hicks

D.

Marshall

Answer» b. Ragnar Frisch

Question:

If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is:

A.

Inelastic

B.

Elastic

C.

Unitary elastic

D.

Perfectly elastic

Answer» a. Inelastic

Question:

For complementary goods, the cross elasticity of demand:

A.

Positive

B.

Negative

C.

Zero

D.

None

Answer» b. Negative

Question:

Which of the following embodies a more widely accepted definition of economics?

A.

Science of material welfare

B.

Science of wealth

C.

A study of mankind in the ordinary business of life

D.

Science of making choice.

Answer» d. Science of making choice.

Question:

The U shape of MC curve reflects

A.

economies of scale

B.

law of increasing returns

C.

reserve capacity

D.

law of variable proportion

Answer» d. law of variable proportion

Question:

At saturation point MU of a commodity is

A.

positive

B.

negative

C.

zero

D.

increasing

Answer» c. zero

Question:

The book ‘Principles of Economics’ was written by:

A.

Keynes

B.

Marshall

C.

Samuelson

D.

Pigou

Answer» b. Marshall

Question:

If a firm’s revenues just cover all its opportunity costs, then:

A.

Normal profit is zero.

B.

Economic profit is zero.

C.

Total revenues equal its explicit costs.

D.

Total revenues equal its implicit costs.

Answer» b. Economic profit is zero.

Question:

The cost that cannot be recovered once spent

A.

accounting cost

B.

fixed cost

C.

implicit cost

D.

sunk cost

Answer» b. fixed cost

Question:

Costs incurred only when production occurs are known as:

A.

Explicit costs.

B.

Fixed costs.

C.

Variable costs.

D.

Technological expenses.

Answer» c. Variable costs.