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Generate QuizEconomics – MCQ – GK Questions
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Fiat money is backed by?
- Gold
- Silver
- Government order
- Forex
Answer: Government order
Fiat money has no intrinsic value and is backed by govt decree.
CSO is now merged into?
- NSSO
- NSO
- RBI
- NITI Aayog
Answer: NSO
National Statistical Office (NSO).
GDP deflator formula?
- Nominal/Real*100
- Real/Nominal*100
- Nominal*Real
- Real-Nominal
Answer: Nominal/Real*100
Measures the overall change in price level in the economy.
Double counting is avoided by using?
- Income method
- Value added method
- Expenditure method
- None
Answer: Value added method
Only the value added at each stage of production is counted.
GDP at market price - Indirect taxes + Subsidies = ?
- GDP at FC
- GNP
- NNP
- NDP
Answer: GDP at FC
Net indirect taxes are subtracted to find factor cost.
Opportunity cost is also called?
- Explicit cost
- Economic cost
- Accounting cost
- Sunk cost
Answer: Economic cost
Economic cost includes both explicit and implicit costs.
Marginal cost curve cuts average cost at?
- Maximum
- Minimum
- Origin
- Infinity
Answer: Minimum
MC intersects AC exactly at its lowest point.
Isoquant shows combinations of?
- Goods
- Inputs
- Prices
- Costs
Answer: Inputs
Different combinations of inputs producing the same output.
Short run has at least one ___ factor.
- Variable
- Fixed
- Sunk
- None
Answer: Fixed
In the short run, some inputs cannot be changed.
Monopsony is a market with?
- One seller
- One buyer
- Two sellers
- Many buyers
Answer: One buyer
A single buyer controls the entire market demand.
Price discrimination is possible in?
- Perfect competition
- Monopoly
- Oligopoly
- Monopolistic
Answer: Monopoly
Requires market control and market segmentation.
Kinked demand curve model is for?
- Monopoly
- Perfect competition
- Oligopoly
- Monopsony
Answer: Oligopoly
Explains price rigidity in an oligopolistic market.
Perfect competition has?
- Differentiated products
- Homogeneous products
- Single seller
- Barriers
Answer: Homogeneous products
All firms produce identical/homogeneous products.
Arc elasticity uses?
- Derivative
- Mid-point method
- Percentage method
- Geometric method
Answer: Mid-point method
Uses the average of initial and final values.
Price elasticity > 1 means demand is?
- Inelastic
- Elastic
- Unitary
- Perfectly inelastic
Answer: Elastic
Ed > 1 indicates relatively elastic demand.
Slope of indifference curve is?
- MRS
- MRT
- MPC
- MPS
Answer: MRS
Marginal Rate of Substitution represents the slope.
Marginal utility is zero when total utility is?
- Zero
- Minimum
- Maximum
- Negative
Answer: Maximum
Total utility peaks when marginal utility becomes zero.
Point elasticity formula uses?
- Percentage change
- Derivative
- Mid-point
- Logarithm
Answer: Derivative
Point elasticity uses calculus/derivative at a specific point.
Cross elasticity of demand for substitutes is?
- Positive
- Negative
- Zero
- Infinite
Answer: Positive
If the price of one rises, demand for the other rises.
Exception to law of demand?
- Normal goods
- Giffen goods
- Luxuries
- Substitutes
Answer: Giffen goods
Giffen goods have an upward sloping demand curve.