11th class Principles of Economics chapter 7 online mcq test with answers for I.Com part 1 Principles of Economics chapter 7(Price and Output Determination)

Principles of Economics Icom Part 1 English Medium Chapter 7 Online Test

Sr. #	Questions	Answers Choice
1	Firm earns abnormal profit, when	AC=AR AR>AC AR<AC AC=MC
2	Shut down point appears, when	AVC=AR AVC>AR AVC<AR AC=AR
3	If variable costs of a firm are covered partly under perfect competition, then that firm	Will run with normal profit Will run with abnormal profit Will run with minimum loss Will not continue its business and close down
4	If the demand for commodity being produced increases, then a firm in the short run ------- its variable factors	Increases Decreases Keeps the same None of three
5	Usually elasticity of demand in equilibrium situation under monopoly is	Equal than unity Less than unity more than unity Zero
6	Industry is in equilibrium under perfect competition in the long run, when every existing firm in the industry	Is earning abnormal profit Is earning normal profit Is facing minimum loss Is facing abnormal loss
7	Under monopoly, marginal revenue is _____ of output	Decreasing function Increasing function Quadratic function Cubic function
8	Speed of increase in total revenue remains equal with the increase in output	Under monopoly Under oligopoly Under perfect competition Under pure competition
9	Tendency of average revenue curve under monopoly is alwaus	Falls down Parallel to x-axis Rises up Parallel to y-axis
10	If the most part of total supply of commodity is produced by one firm, it is called	Oligopoly Monopoly Perfect competition Monopolistic competition
11	Monopoly is opposite to	Perfect competition Imperfect competition Perfect competition and imperfect competition both Oligopoly
12	When a firm earns abnormal profit in the short run, then its	MC=MR=AR=AC all are equal MC=MR=AR while AC is less MC=MR=AR while AC is more MC=MR=AR while AV is sometimes equal to them and sometimes less than tham
13	Monopolist firm in the long run	Always faces loss Usually faces loss Usually earns normal profit Always earns abnormal profit
14	Under perfect competition in the long run a firm	Always earns abnormal profit Always earns normal profit Usually earns abnormal profit Usually faces loss
15	A firm earns normal profit	When price of the commodity is equal to average cost When price of the commodity is more than average cost When price of the commodity is less than average cost When total revenue is more than total costs

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