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- MCQs
- Course
- ECO302 Principles of Microeconomics
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- 23 Oct 2026
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Eco302. Principles Of Economic. Solved Mcqs By Pin2.
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
Answer» C. Amount of the. commodity demanded at a particular price and at a particular time.
- 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
Answer» A. Increase
- 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.
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
Answer» D. D. Quantity of the good offered for sale at a particular price per unit of time
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
Answer» B. Decreases
- The cost of one thing in terms of the alternative given up is called: A.
Real cost
B. C.
Physical cost
D.
Opportunity cost
Answer» D. Opportunity cost
Q7. 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. C.
Monopoly
D.
A.
Derived demand
B.
Joint demand
C.
Composite deman
D.
Answer» A. Derived demand
- 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
Answer» B. Marginal productivity
- Who is the ‘lender of the last resort’ in the banking structure of India? A.
State Bank of India
B. C.
EXIM Bank of India
D.
Union Bank of India
Answer» B. Reserve Bank of India
- ____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks. A.
Repo rate
B.
Bank rate
C.
Prime lending rate
D.
Reverse repo rate
Answer» B. Bank rate
- Which among the following is a function of the Reserve Bank of India? A.
Bank issues the letters of credit to their customers certifying their creditability
B. Collecting and compilation of statistical information relating to banking & other financial sectors C.
Banks under write the securities issued by public or private organizations
D.
Accepting deposits from the public
Answer» B. Collecting and compilation of statistical information relating to banking & other financial sectors.
13. The following is the direct tax among:
A.
House tax
B.
Entertainment tax
C.
Service tax
D.
Value added tax
Answer» A. House tax
Q14. Which among the following is a cause of inflation?
A.
Deficit financing
B.
Rise in external loans
C.
Unfavorable balance of payment
D. A hike in the CRR by the central bank of the country Answer» A. Deficit financing.
- The capital that is consumed by an economy or a firm in the production process is known as:
A.
Capital loss
B. C.
Dead-weight loss
D.
Depreciation
Answer» D. Depreciation
Q16. Which of the following is also known as International Bank for Reconstruction and Development?
A.
Asian Development Bank
B.
World Bank
C.
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