miscellaneous MCQs – Page 59

Practise focused miscellaneous questions with marked answers for exam preparation and subject revision.

miscellaneous Mcqs
1161. To maximise growth without making a loss a firm should produce the highest output where ?
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A. Average revenue equals marginal cost

B. Average revenue equals average cost

C. Marginal revenue equals marginal cost

D. Average cost equals marginal cost

1162. A reduction in the money supply is likely to ?
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A. Increase inflation

B. Decrease deflation

C. Increase the interest rate

D. Reduce the interest rate

1163. According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
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A. aggregate supply will increase , aggregate demand will decrease

B. aggregate supply will increase, aggregate output will increase and the price level will decrease

C. aggregate supply will increase aggregate output will increase and the price level will increase

D. both aggregate supply and demand will increase and the price level will increase

1164. Privatisation is the transfer out ?
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A. government businesses to the private sector

B. Publicly held stock to private individuals

C. Privately owned business to the government sector

D. corporately owned businesses to individuals

1165. An outward shift of the production possibility frontier may be caused by ?
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A. Better training of employees

B. Productive inefficiency

C. An increase in demand

D. More government spending

1166. If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?
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A. Leave output where it is:

B. Increase costs

C. Reduce output

D. Increase output

1167. A variable whose value is determined by the model of which it is a part is termed ?
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A. exogenous

B. constant

C. independent

D. endogenous
1168. The total quantity of goods and services produced (or supplied) in an economy in a given period is ?
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A. aggregate output

B. aggregate expenditure

C. aggregate investment

D. aggregate demand

1169. Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ?
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A. 4

B. 25

C. 6

D. 2.5

1170. The precautionary demand for money is ?
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A. An idle because

B. An active balance

C. Directly related to interest rates

D. Inversely related to income

1171. If firms earn normal profits ?
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A. No profit is made is accounting terms

B. Other firms will join the industry

C. The revenue equal total costs

D. They will aim to leave the industry

1172. Burning your neighbors house down is considered a serious offense It is a violation of_____________?
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A. folkways

B. taboos

C. mores

D. table manners

1173. Correlation differs from causation in that correlation ?
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A. occurs purely by chance

B. occurs among more than two variables

C. precedes causation

D. only indicates a probable relation

1174. A culture complex is_______________?
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A. a psychological condition

B. a theater symphony hall and museum

C. a cluster of traits centered around a common activity

D. one cultural trait

1175. In the equation C = a + bY, which describes the aggregate consumption function b stands for ?
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A. The average consumption level

B. The amount of income when consumption is zero

C. The marginal propensity to consume.

D. The amount of consumption when income is zero

1176. The evaluation that a certain phenomenon is good beautiful moral right and therefore desirable is termed a_______________?
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A. value

B. guideline

C. folkway

D. norm

1177. The social sciences have no laws because ?
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A. social science research techniques are flawed

B. social scientists are a lawless group

C. none of the above

D. the various disciplines squabble among themselves

1178. The most important category of norms for maintaining social order are ?
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A. folkways

B. customs

C. mores

D. traditions

1179. To be Productively efficient a firm must produce where ?
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A. Marginal costs are Minimized

B. Average costs are minimized

C. Average costs are maximized

D. Marginal costs are maximized
1180. The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true ?
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A. The average cost for 10 units is Rs1300

B. The average cost for 11 units is Rs1300

C. The average cost increase from Rs20 to Rs30

D. The total costs for 11 units are Rs700