Economics Quiz from Previous Question Papers

1.Which of the following most closely approximates our definition of oligopoly ?

Ans : the cigarette industry

2.One of the essential conditions of perfect competition is :

Ans : only one price for identical goods at any one time

3.The theory of distribution relates to which of the following ?

Ans : equality in the distribution of the income and wealth

4.If an industry is characterized by economies of scale then

Ans : long run unit costs of production decreases as the quantity the firm produces increases

5.Movement along the same demand curve is known as

Ans : increase and decrease of demand

6.When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will

Ans : increase

7.The income elasticity of demand being greater than one, the commodity must be

Ans : a luxury

8.When there is one buyer and many sellers then that situation is called

Ans : single buyer right

9.The measure of a worker’s real wage is

Ans : the purchasing power of his earnings

10.Average Revenue means

Ans : the revenue per unit of commodity sold

11.Economic rent refers to

Ans : payment made for the use of land

12.If the price of an inferior good falls, its demand

Ans : rises

13.The Marginal Utility Curve slopes downward from left to right indicating

Ans : an inverse relationship between marginal utility and the stock of commodity

14.In equilibrium, a perfectly competitive firm will equate

Ans : marginal revenue with marginal cost

15.Equilibrium is a condition that can

Ans : change only if some internal factor changes

16.Entrepreneurial ability is a special kind of labour that

Ans : organizes the process of production

17.Transfer earning or alternative cost is otherwise known as

Ans : opportunity cost (economic cost)

18.Demand of commodity mainly depends upon ____________

Ans : purchasing power

19.Equilibrium price means

Ans : price determined by demand and supply

20.When marginal utility is zero, the total utility is

Ans : maximum

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