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Economics M.C.Q (1 Marks)

Model Paper 5 · CBSE STD 11 Commerce (CBSE - English Medium). 10 questions.

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M.C.Q (1 Marks)

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10 questions · timed · auto-graded

MCQ 11 Mark
In case of perfect competition:
i. a firm is able to charge higher price
ii. a firm is able to charge uniform price
iii. a firm is able to sell any amount at the prevailing price
  • A
    only i
  • B
    Both ii and iii
  • C
    only ii
  • D
    only ii
Answer
b) Both ii and iii
Explanation: Perfect competition is a form of the market where there is a large number of buyers and sellers of a commodity. how much genius product is sold and its price is determined by the force of supply and demand. An individual buyer or seller has no control over price. Accordingly, any individual form fails to make any influence on the price of the commodity.
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MCQ 21 Mark
Average fixed cost (AFC) is indicated by:
  • ✓
    a rectangular hyperbola
  • B
    a straight line parallel to X-axis
  • C
    a U-shaped curve
  • D
    a straight line parallel to Y-axis
Answer
Correct option: A.
a rectangular hyperbola
(a) a rectangular hyperbola
Explanation:
AFC is a rectangular hyperbola. It shows that AFC decreases as output increases and $AFC \times Q$ at any level of output is the same. Because $AFC \times Q = TFC$ which is constant at all levels of output.
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MCQ 31 Mark
Can MR be zero or negative?
  • A
    Both are not related
  • B
    Both are related
  • ✓
    Yes
  • D
    No
Answer
Correct option: C.
Yes
(c) Yes
Explanation: MR can be zero when TR remains same with rise in output and MR can be negative when TR falls with rise in output.
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MCQ 41 Mark
Which of the following is a feature of perfect competition?
  • A
    Homogeneous Units of the Product
  • B
    Large Number of Buyers and Sellers
  • C
    Perfect Knowledge of the Market
  • ✓
    All of these
Answer
Correct option: D.
All of these
(d) All of these
Explanation: All the options are features of perfect competition.
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MCQ 51 Mark
Assertion (A): When the law of demand fails, the inverse relationship between price and quantity does not hold good.
Reason (R): The demand curve may slope upward showing higher purchases at a higher price.
  • A
    Both A and R are true and R is the correct explanation of A.
  • ✓
    Both A and R are true but R is not the correct explanation of A.
  • C
    A is true but R is false
  • D
    A is false but R is true.
Answer
Correct option: B.
Both A and R are true but R is not the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
Explanation: When the law of demand fails, the inverse relationship between price and quantity does not hold good. Instead, the demand curve may slope upward showing higher purchases at a higher price.
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MCQ 61 Mark
The average fixed cost at 4 units of output is ₹ 20. Average variable cost at 5 units of output is 40. Average cost of producing 5 units is:
  • ✓
    ₹ 60
  • B
    ₹ 56
  • C
    ₹ 20
  • D
    ₹ 40
Answer
Correct option: A.
₹ 60
(a) ₹ 60
Explanation:
₹ 60 Average cost = Average fixed cost + Average variable cost
Average cost = 20 + 40 = 60
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MCQ 71 Mark
The Total revenue become negative when
  • A
    TR is constant and maximum
  • B
    TR stops rising at increasing rate
  • ✓
    Never
  • D
    TR starts rising
Answer
Correct option: C.
Never
(c) Never
Explanation: the total revenue can never become negative as if some qty is sold then some revenue will surely be generated. It can fall but can never become negative. If nothing is being sold, then TR will be zero but not negative.
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MCQ 81 Mark
Excess capacity is a prominent feature of equilibrium under?
  • A
    Perfect competition
  • B
    gopoly
  • C
    Monopoly
  • ✓
    Monopolistic competition
Answer
Correct option: D.
Monopolistic competition
(d) Monopolistic competition
Explanation: In monopolistic competition , the actual output supplied is always less than the potential output. A producer under monopolistic competition will not move towards the potential or ideal output as that will increase his MC and MC will become more than MR leading to losses.
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MCQ 91 Mark
One of the characteristics of economic resource is scarcity. Which is the other?
  • A
    They are not marketable
  • B
    They are in abundance
  • ✓
    They have alternate uses
  • D
    They are available in limited quantity
Answer
Correct option: C.
They have alternate uses
(c) They have alternate uses
Explanation: Economic resources are the assets which an economy may have available to supply and produce goods and services to meet the ever changing needs and wants of individuals and society as a whole.
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MCQ 101 Mark
In case of increase in supply, we move:
  • A
    from upper point to lower point of the supply curve
  • B
    from lower point to upper point of the supply curve
  • ✓
    to right on another supply curve
  • D
    to left on another supply curve
Answer
Correct option: C.
to right on another supply curve
(c) to right on another supply curve
Explanation: Increase in supply refers to a situation when more is supplied at the existing price of the commodity. It leads to a forward shift in the supply curve.
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M.C.Q (1 Marks) - Economics STD 11 Commerce Questions - Vidyadip