Fundamentals Of Economics MCQ - Fundamentals Of Economics Section 2

1 Which of the following is the correct Statement

A
Under perfect competition, a firm determine its price where AR = IVIR
B
In a perfectly competitive industry, a firm is in equilibrium in the short run only when it is AC = AR = IVIR = MC.
C
The short-run supply curve has a negative slope
D
A firm is a price-taker under perfect competition.

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Correct AnswerOption D

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2 Which of the following is the best general definition of the study of economics

A
lnflation and employment in a growing economy.
B
The best way to invest in the stock market
C
Business decision making under foreign competition
D
Individual and social choice in the face of scarcity.

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Correct AnswerOption D

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3 As per the indifference curve and price line, a consumer will not be in equilibrium when

A
Ratios of marginal utilities and price of the respective goods are equal
B
The ratio of marginal utilities of the two goods is equal to the ratio of their respective prices
C
The marginal rate of substitution is equal to the ratio of prices of the two goods.
D
The marginal rate of substitution is decreasing.

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Correct AnswerOption D

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4 Opportunity cost means

A
Cost of a Homogeneous product
B
Cost of the Last unit
C
Cost of next best alternative
D
Cost of all units produced.

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Correct AnswerOption C

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5 Price discrimination is profitable and possible of the two markets have

A
Equal Elasticity of Demand
B
Different Elasticity of Demand
C
Inelastic demand
D
High Elastic Demand

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Correct AnswerOption B

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