Economics Ics Part 1 English Medium Online Test With Answers

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Economics Ics Part 1 English Medium Online Test

Sr. # Questions Answers Choice
1 Marginal revenue of a monopolist is equal to price greater than price less than price increases with output
2 Marginal revenue is always less than price at all level of output in perfect competition monopoly both a and b none of the above
3 A monopoly generally allocates resources in a socially optimal way encourages greater income equality encourages greater efficiency produces less quantity than the quantity which minimies average cost
4 A firm should shut down in the short run if it is not covering its variable cost fixed cost total cost explicit cost
5 The most efficient scale of production of a firm is where LAC is minimum SAC is minimum LMC is minimum SMC is minimum
6 When a competitive firm achieves long run equilibrium then P= MC MR = MC P = ATC all of the above
7 The necessary condition for equilibrium position of a firm is MR > MC MC > price MC = MR MC = AC
8 Under perfect competition AC = AVC AR = AC AR = MC AR= MR
9 If a firm shuts down temporarily, it will incur loss equal to AFC AVC TFC TVC
10 Normal profit is called normal because it is neither very high nor very low it is minimum acceptable to the producer it is minimum which buyer wants to pay it is maximum allowed by govt.
11 In monopoly and perfect competition the cost curves are similar different opposite falling in competition rising in monopoly
12 Profit is maximum when TC and TR curves are parallel MC and MR curves are parallel TC and TR curves cross each other AC and AR curves cross each other
13 A firm decides to exit the industry when AC starts rising MC starts rising price is less than LAC TC starts rising
14 Total profit = ? Per unit profit x output Per unit profit x input Per unit profit + output per unit profit - input
15 In short period how many possibilities in which a firm may find itself four five six seven
16 If Bali burgers find that their MC of burgers is less than MR they would try to expand business reduce business continue as before close business
17 There are large number of seller and buyers in the market but none is able to influence market price. such a market is called free open regular competitive
18 A firm decides to shut down production temporarily when MC start rising AC stat rising price = AC price falls below AVC
19 A monopoly firm is in equilibrium when MC intersects AC MC intersect MR AC intersects AR TC intersects TR
20 In the long run under perfect competition a firm produces at a point where LAC is minimum SAC is minimum both LAC and SAC are minimum none is minimum
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