Economics Practice MCQ Page 16
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1494 A bond's interest rate would be higher if
- it has a low liquidity.
- it has low liquidity .
- there is low inflation.
- it has a long time to maturity.
- it has a short time to maturity.
Question: 1495 If interest rates are expected to rise in the future then
- the long-term interest rate will be higher than the short -term rate.
- long-term and short-term rate will be about equal .
- the short-term interest rate will be higher than the long-term rate.
- no one will buy long-term bonds.
- no one will buy short-term bonds.
Question: 1497 Pure economic rents are
- payments to factors owned by entrepreneurs.
- only payments to land .
- payments to factors whose supply is inelastic.
- payments to factors whose supply is perfectly inelastic.
- economic profit.
Question: 1498 A normal profit is
- a zero economic profit.
- about 10 percent for most industries.
- revenues less explicit costs.
- a zero accounting profit.
- more than enough to justify the entrepreneur's curve.
Question: 1500 Imperfect competition exists if
- all buyers know the price of the good.
- new firms are free to enter the market.
- each buyers faces an upward -sloping supply curve.
- each seller faces a horizontal demand curve.
- the product of each seller is identical .
Question: 1501 By increasing the price of its product about those of its competitors, a perfectly competitive seller
- can seller more.
- can still sell as much .
- reduces its costs.
- increases its revenues .
- can sell nothing .
Question: 1503 If it reduces its price below the price set by its competitors,a perfectly competitive seller
- can sell more.
- can still sell only as much as at the competitors' price.
- reduces its costs.
- increases its revenues.
- can sell nothing .
Question: 1504 The largest possible loss that a firm will make in the short run is
- zero ,because it will leave the industry .
- its total fixed costs.
- its total variable costs.
- the minimum point on the average variable cost curve.
- the minimum point on the average total cost curve.
Question: 1505 According to the shutdown rule,a firm should produce no output if
- price is below minimum average total cost.
- price is above minimum average total cost.
- revenue are below minimum average variable costs.
- price is below minimum average variable costs.
- the marginal cost of the first unit exceeds price.
Question: 1507 The marginal revenue of a perfectly competitive firms is
- equal to the price of its product.
- positively related to output .
- negatively related to output.
- always higher than marginal cost.
- equal to the minimum value of average total costs.
Question: 1509 If ,at the current level of output,the firm's marginal revenue is less than its marginal cost,then firm should
- increase output .
- shut down .
- expand its capital stock.
- decrease output.
- keep output unchanged.
Question: 1511 If a profit-maximizing firm in a perfectly competitive industry produces 50 units of output at a price of $4 per unit ,then.
- fixed costs are no more than $200.
- variable costs are no more than $200.
- average total cost is less than $4.
- marginal cost is no more than $ 4.
- average variable cost equals $4.
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
1494 . B
1495 . A
1497 . D
1498 . A
1500 . D
1501 . E
1503 . B
1504 . B
1505 . D
1507 . A
1509 . D
1511 . B
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