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 The necessary condition for equilibrium of firm is AVC = AFC AR = MR MC = MR TVC = TFC
2 Normally MR curve intersects MC curve at points 1 2 3 4
3 The basic goal of a firm is to maximize revenues maximize employees' welfare maximize profit maximize output
4 A firm earns economic profit when total profit exceeds normal profit implicit costs explicit costs variable costs
5 Economic profit is part of total cost total revenue minus total cost total revenue minus variable cost total variable cost minus total fixed cost
6 Normal profit is part of total cost part of economic profit part of fixed cost total revenue minus total cost
7 At the point of equilibrium of firm under perfect competition MC curve must be rising MC curve must be falling MR curve must be rising MR curve must be falling
8 profit is a maximum when TC and TR curves are parallel MC and MR curves are parallel AC and AR curves are parallel TFC and TVC are parallel
9 Profit is maximum when distance between TR and TC is maximum distance between AR and AC is maximum distance between MR and MC is maximum distance between MR and AR is maximum
10 The necessary condition for equilibrium position of a firm is MC > MR MC > price MC = MR MC = AC
11 The sacrifice of an alternative use of resources to produce something is called its real cost opportunity cost sacrifice cost alternative cost
12 Pollution which is side effect of producing or consuming something and which is not taken into account by producers and sellers is called externality wastage extra cost opportunity cost
13 The long run average cost curve is tangent to various short run TCs short run ACs AVCs AFCs
14 As out put increases, AC curve falls rises remains constant all of the above
15 Long rum is a period three years or longer long enough to allow firms to change plant size and capacity in which a firm need not get loans which affects larger more than smaller firms
16 Short run means is a period less than one year in which at least one input is fixed in which no input can be changed in which firms can easily enter or exit
17 The cost which a firm incurs for purchasing or hiring factors is called implicit explicit real basic
18 All the following are U-shape except AVC AFC AC MC
19 TC rises continuously falls then rises is horizontal to x-axis is parallel to y-axis
20 TVC starts from origin not from origin is parallel to x-axis is parallel to y-axis
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