1. Which economist gave the theory of Opportunity cost ? Milton Friedman Adam Smith John Keynes Gottfried Haberler Answer: Gottfried Haberler Explanation: Gottfried Haberier gave the theory of the opportunity cost. Opportunity cost in microeconomics is the loss of the benefit that could have been taken by making the alternative option that was available at the time of selection. View Answer Discuss in Forum Report Question

 2. The expenses leading to the increment in production capacity are which type of expenses ? Revenue Expenditure Production Expenditure Investment Expenditure Capital Expenditure Answer: Investment Expenditure Explanation: The expenses leading to the increment in production capacity are Investment expenditure. It is the expenditure that an organisation makes for the creation of the new assets like machinery, building etc. View Answer Discuss in Forum Report Question

 3. What is Gini coefficient used for ? To measure income equality To measure income inequality To measure distribution of income To measure profit and loss Answer: To measure income inequality Explanation: Gini coefficient is used to measure income inequality. A value of ‘0’ represents absolute equality, a value of 100 represents absolute inequality. View Answer Discuss in Forum Report Question

 4. Pricing Policy of Minimum support price follows which approach ? Cost plus approach Investment plus approach Land plus approach Loan plus approach Answer: Cost plus approach Explanation: Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. Cost of production (CoP) is one of the important factors in the determination of MSP of mandated crops. View Answer Discuss in Forum Report Question

 5. A market structure which is dominated by only a small number of firms is called ? Perfect Competition Monopoly Oligopoly Monopolistic Competition Answer: Oligopoly Explanation: Monopolistic competition, also called competitive market, where there is a large number of producers, each producer has a small share in the market with slightly different products. View Answer Discuss in Forum Report Question

 6. When the output is equal to zero, the variable cost is ______ ? Constant Zero Minimum Maximum Answer: Zero Explanation: Total Variable cost = total quantity of output × variable cost per unit If output is equal to zero then the variable cost is equal to zero. Total cost = variable cost +fixed cost View Answer Discuss in Forum Report Question

 7. A marketplace in which a final goods or service is bought and sold is called ___ ? Equity Market Factor Market Commodity Market Product Market Answer: Product Market Explanation: The product market is the market where final goods or services are sold to the customer for example the pharmaceutical sector, smart- phones. In this type of market trading of raw does not happen both company and customer deals with the finished product. View Answer Discuss in Forum Report Question

 8. A higher _____ index represents inequality in income distribution ? CPI Gini GDP NDP Answer: Gini Explanation: Gini coefficient measures the inequality in income distribution. A value of 0 represents absolute equality, a value of 100 represents absolute inequality. View Answer Discuss in Forum Report Question

 9. Which of the following is NOT a central economic problem, solved by the Production Possibility Curve ? Full utilisation of resources Sustainable consumption Economic efficiency Economic growth Answer: Sustainable consumption Explanation: The Production Possibilities Curve (PPC) is a model used to show the trade offs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth and contractions. View Answer Discuss in Forum Report Question

 10. Which of the following is not included in the factors of production ? Capital Labour Tax Land Answer: Tax Explanation: Factors of production are the inputs needed for the creation of a good or service. The factors of production include land, labor, entrepreneurship, and capital. Tax is not the factor of production. View Answer Discuss in Forum Report Question
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