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Economics M.C.Q (1 Marks)

Model Paper 3 · Rajasthan Board (RBSE) STD 11 Humanities & Commerce (Rajasthan - English Medium). 10 questions.

Questions

M.C.Q (1 Marks)

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10 questions · auto-graded multiple-choice test.

MCQ 11 Mark
Main feature of perfectly competitive market is:
  • ✓
    All of these
  • B
    Uniform price
  • C
    Homogeneous product
  • D
    Large number of buyers and sellers
Answer
Correct option: A.
All of these
(a) All of these
Explanation: All the options are features of a perfectly competitive market.
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MCQ 21 Mark
Which of the following is the variable cost for a firm?
  • A
    Interest on loan
  • ✓
    Wages to employees
  • C
    Monthly rent
  • D
    Insurance premium
Answer
Correct option: B.
Wages to employees
(b) Wages to employees
Explanation: Variable costs include payments such as wages of labour employed, prices of the raw materials, fuel and power used, the expenses incurred on transporting, etc. However, wages paid to workers for their regular hours are a fixed cost. Any extra time they spend on the job is a variable cost.
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MCQ 31 Mark
AR is same as MR in perfect competition as
  • ✓
    Price remains fixed
  • B
    Price can rise
  • C
    Price does not remain fixed
  • D
    Price may fall
Answer
Correct option: A.
Price remains fixed
(a) Price remains fixed
Explanation: In the perfectly competitive market, each firm is a price taker. As a result uniform price prevails in the market. It means that the revenue from every additional unit , i.e. MR is equalto the price (AR) of the product. So AR=MR in perfect competition.
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MCQ 41 Mark
In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
  • ✓
    Marginal revenue
  • B
    Marginal cost
  • C
    Average cost
  • D
    Average revenue
Answer
Correct option: A.
Marginal revenue
(a) Marginal revenue
Explanation: In perfect competition, marginal revenue curves generally lies below the demand curve and slopes downward.
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MCQ 51 Mark
Assertion (A): An individual is influenced by emerging trends and fashions.
Reason (R): An individual simply wants to be trendy accordingly, one prefers to buy more of a commodity.
  • 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: An individual is influenced by emerging trends and fashions. An individual simply wants to be trendy accordingly, one prefers to buy more of a commodity.
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MCQ 61 Mark
TVC can be calculated as:
  • A
    TC - TFC
  • ✓
    TC - TFC and $\Sigma M C$
  • C
    $\frac{A V C}{Q}$
  • D
    $\Sigma MC$
Answer
Correct option: B.
TC - TFC and $\Sigma M C$
(b) $TC - TFC$ and $\Sigma MC$
Explanation: Total cost is the sum total of total fixed cost and total variable cost. TVC= TC- TFC
Marginal cost is an additional cost and additional cost cannot be fixed cost, it can be a variable cost. Accordingly, the sum total of marginal costs corresponding to different units of output becomeS TVC.
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MCQ 71 Mark
The AR curve and industry demand curve are same in case of?
  • ✓
    Monopoly
  • B
    Perfect competition
  • C
    None of above
  • D
    Oligopoly
Answer
Correct option: A.
Monopoly
(a) Monopoly
Explanation: In monopoly, price is determined by the industry, i.e. the firm is a price maker. A monopolist can sell as many units of a product by lowering the price. So, the AR curve of the firm is the same as the demand curve.
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MCQ 81 Mark
The market supply curve of perishable goods is a vertical straight line parallel to Yaxis. It happens in which of the following periods?
  • A
    Long period
  • B
    All of these
  • ✓
    Very short period
  • D
    Short period
Answer
Correct option: C.
Very short period
(c) Very short period
Explanation: The market supply curve of perishable goods is a vertical straight line parallel to Y-axis. It happens in a very short period.
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MCQ 91 Mark
opportunity cost is the
  • A
    Next best alternative produced
  • B
    Next best alternative available
  • C
    Next best alternative chosen
  • ✓
    Next best alternative sacrificed
Answer
Correct option: D.
Next best alternative sacrificed
(d) Next best alternative sacrificed
Explanation: For eg. if you are working in a restaurant at a salary of Rs. 50,000. and you receive an offer to work for a news channel which will pay you Rs. 30,000 and another offer to work in a administrative office which will offer you 40,000 Rs.
In this case the opportunity cost of working in the restaurant is the cost of the next best alternative foregone, which is the offer of Rs. 40,000 for working in a office.
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MCQ 101 Mark
The supply curve of a firm shows
  • A
    Graphical representation of quantity supplied at keeping prices constant
  • B
    Graphical representation of quantity supplied at various profit levels
  • C
    Graphical representation of quantity supplied at a particular price only
  • ✓
    Graphical representation of quantity supplied at various prices
Answer
Correct option: D.
Graphical representation of quantity supplied at various prices
(d) Graphical representation of quantity supplied at various prices
Explanation: It is the locus of all the points showing various quantities of a commodity that a producer is willing to sell at various levels of price.
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