miscellaneous MCQs – Page 62

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

miscellaneous Mcqs
1221. If the price is less than the average costs but higher than the average variable costs ?
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A. The firm is making a loss and will shutdown in the short term

B. The firm is making a profile

C. The firm is making a loss but will continue to produce in the short term

D. The firm is making a loss and is making a negative contribution to fixed costs

1222. Which of the following would be considered a supply-side policy ?
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A. Restrictions placed on the amount that can be imported

B. An increased in government spending that would lead to increased aggregate demand

C. An increase in the minimum wage that would cause consumer spending to increase

D. Investment tax credits for businesses to encourage investment
1223. If an increase in investment leads to a bigger increase in national income this called the ?
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A. Aggregate demand

B. Multiplier

C. Accelerator

D. Monetarism

1224. Objectivity means ?
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A. precision

B. eliminating bias

C. taking nothing for granted

D. repeating observations

1225. The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ?
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A. multiplier

B. elasticity coefficient

C. automatic stabiliser

D. marginal propensity of the autonomous variable

1226. Companies in the private sector are owned by ?
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A. Employees

B. The government

C. Shareholders

D. The community

1227. Investment depends mainly on ?
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A. Historic data

B. Past levels of income

C. Future expected profits

D. Present national income levels
1228. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
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A. 0.81

B. 0.8

C. 800

D. 810

1229. According to the Laffer curve as tax rates increase tax revenue ?
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A. initially decrease and then increase

B. decrease continuously

C. initially increase and then decrease

D. rise continuously

1230. The PFI aims to deliver public projects and services using ?
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A. time and motion studies

B. Public borrowing

C. foreign labour

D. The private sector
1231. An economy may operate outside the production possibility Frontier if ?
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A. It is a mixed economy

B. It is trading other economies

C. It is not utilizing its resources fully

D. It is being productively efficient

1232. An anthropologist living with a group of people and engaging in some of their rituals is using the following research method ?
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A. experiment

B. sample survey

C. statistical survey

D. participant observation
1233. If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
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A. The higher price in market A

B. The higher price in market B

C. The same Price in both markets

D. Cannot tell which price will be higher

1234. Knowing the workings of a car engine represents which kind of knowledge ?
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A. normative

B. value oriented

C. rule oriented

D. cognitive
1235. To maximise sales revenue a firm should produce where ?
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A. Marginal cost is zero

B. Marginal revenue equals marginal cost

C. Marginal revenue is maximised

D. Marginal revenue is zero

1236. Laws are_______________?
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A. formal norms enforced by the state

B. less important than folkways

C. informal norms

D. casual folkways

1237. A fall in interest rates is likely to ?
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A. Increase aggregate demand

B. Decrease exports

C. Increase savings

D. Decrease consumption

1238. Ethical neutrality is the opposite of_________________?
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A. judgmental social science

B. participant observation

C. objectivity

D. generalization

1239. For the better part of recorded history knowledge about social relationships was principally based on ?
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A. speculation

B. scientific investigation

C. inspiration

D. measurement

1240. Keynes suggested that decisions to consume and save were based on ?
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A. permanent income

B. previous decisions

C. relative income

D. absolute income