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Dear candidates you will find MCQ questions of Principles of Economics and Management here. Learn these questions and prepare yourself for coming examinations and interviews. You can check the right answer of any question by clicking on any option or by clicking view answer button.

Q. 1) Demand for a commodity refers to:

(A) Need for the commodity
(B) Desire for the commodity
(C) Amount of the commodity demanded at a particular price and at a particular time
(D) Quantity demanded of that commodity
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Q. 2) If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

(A) Increase
(B) Decrease
(C) Remain the same
(D) Become zero
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Q. 3) Income elasticity of demand is defined as the responsiveness of:

(A) Quantity demanded to a change in income
(B) Quantity demanded to a change in price
(C) Price to a change in income
(D) Income to a change in quantity demanded
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Q. 4) The supply of a good refers to:

(A) Stock available for sale
(B) Total stock in the warehouse
(C) Actual Production of the goo
(D) D. Quantity of the good offered for sale at a particular price per unit of time
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Q. 5) In the short run, when the output of a firm increases, its average fixed cost:

(A) Remains constant
(B) Decreases
(C) Increases
(D) First decreases and then rises
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Q. 6) The cost of one thing in terms of the alternative given up is called:

(A) Real cost
(B) Production cost
(C) Physical cost
(D) Opportunity cost
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Q. 7) In which of the following market structure is the degree of control over the price of its product by a firm very large?

(A) Imperfect competition
(B) Perfect competition
(C) Monopoly
(D) In A and B both
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Q. 8) Demand for factors of production is:

(A) Derived demand
(B) Joint demand
(C) Composite deman
(D) D None of the above
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Q. 9) The producer’s demand for a factor of production is governed by the ___ of that factor.

(A) Price
(B) Marginal productivity
(C) Availability
(D) Profitability
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Q. 10) Who is the ‘lender of the last resort’ in the banking structure of India?

(A) State Bank of India
(B) Reserve Bank of India
(C) EXIM Bank of India
(D) Union Bank of India
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