Economics Mcqs
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 ?

A. The average cost increase from rs20 to rs30
B. The total costs for 11 units are rs700
C. The average cost for 10 units is rs1300
D. The average cost for 11 units is rs1300

An outward shift of the production possibility frontier may be caused by ?

A. An increase in demand
B. More government spending
C. Better training of employees
D. Productive inefficiency

The law of diminishing returns assumes ?

A. There are no fixed factors of production
B. There are no variable factors of production
C. Utility is maximised when marginal product falls
D. Some factors of production are fixed

The first level of output at which the long run average cost are minimized is called ?

A. The minimum efficient scale
B. The minimum external scale
C. The maximum external scale
D. The maximum effective scale

Economic growth can be shown by ?

A. An inward shift of the production possibility frontier
B. A movement along the production possibility frontier
C. An outward shift of the production possibility frontier
D. A decision by the government to produce inside the production possibility frontier

In a free market the combination of products produced will be determined by ?

A. Market forces of supply and demand
B. The government
C. The law
D. The public sector

An economy may operate outside the production possibility Frontier if ?

A. It is not utilizing its resources fully
B. It is being productively efficient
C. It is a mixed economy
D. It is trading other economies

The resources in an economy are ?

A. Constantly increasing
B. Fixed at any moment
C. Constantly decreasing
D. Able to be transferred easily between industries

Privatisation is the transfer out ?

A. Publicly held stock to private individuals
B. Corporately owned businesses to individuals
C. Government businesses to the private sector
D. Privately owned business to the government sector

Which of the following statements supports deregulation of industries ?

A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist there is rarely a reason for government regulation
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above