Fundamentals of Economics MCQs and Notes

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📊 Fundamentals of Economics
Q. If a firm produces 200 units of commodity X by employing 10 workers and 240 units of the same commodity by employing 12 workers, then the Average Product of the worker is
  • (A) 20
  • (B) 40
  • (C) 200
  • (D) 240
💬 Discuss
✅ Correct Answer: (A) 20
📊 Fundamentals of Economics
Q. Marginal cost is defined as
  • (A) the change in total cost due to one unit change in output.
  • (B) the change in total cost due to one unit change in input.
  • (C) the ratio of total cost to total output
  • (D) the ratio of total cost to total input
💬 Discuss
✅ Correct Answer: (A) the change in total cost due to one unit change in output.
📊 Fundamentals of Economics
Q. All the factors of production become variable in the
  • (A) Short run
  • (B) long run
  • (C) very short run 2
  • (D) very long run
💬 Discuss
✅ Correct Answer: (B) long run
📊 Fundamentals of Economics
Q. Which one of the following cost can never become zero?
  • (A) Average cost
  • (B) Fixed cost
  • (C) Marginal cost
  • (D) Variable cost
💬 Discuss
✅ Correct Answer: (B) Fixed cost
📊 Fundamentals of Economics
Q. The ‘Law of Variable Proportion’ was first developed by
  • (A) Prof. Mill
  • (B) Prof. Marshall
  • (C) Prof. Ricardo
  • (D) Prof. Smith
💬 Discuss
✅ Correct Answer: (B) Prof. Marshall
📊 Fundamentals of Economics
Q. Which one of the following is not a factor of production?
  • (A) Land
  • (B) Labour
  • (C) Capital
  • (D) Bank Loan
💬 Discuss
✅ Correct Answer: (D) Bank Loan
📊 Fundamentals of Economics
Q. When the price elasticity of demand is equal to one, the demand curve is
  • (A) rectangular hyperbola
  • (B) parallel to the horizontal axis.
  • (C) parallel to the vertical axis
  • (D) negatively sloped straight line
💬 Discuss
✅ Correct Answer: (A) rectangular hyperbola
📊 Fundamentals of Economics
Q. In the case of rare coins, supply curve will be
  • (A) Horizontal
  • (B) Vertical
  • (C) backward bending
  • (D) positively sloped
💬 Discuss
✅ Correct Answer: (B) Vertical
📊 Fundamentals of Economics
Q. The concept of ‘Consumer Surplus’ was introduced in Economics by
  • (A) Prof. Robbins
  • (B) Prof. Samuelson
  • (C) Prof. Smith
  • (D) Prof. Marshall
💬 Discuss
✅ Correct Answer: (D) Prof. Marshall

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