General Economics GK online MCQ practice set

Q21. Transformation of inputs into outputs is known as

A. Production
B. Consumption
C. Distribution
D. Exchange

Q22.— is an example of secondary input

A. Land
B. Labour
C. Capital
D. Raw material

Q23. Odd-man out from the following

A. Steel
B. Medicine
C. Education
D. Train

Q24. The choice of techniques of production is related to the problem of

A. What to produce
B. How to produce
C. For whom to produce
D. None of the above

Q25. The functional relationship between inputs and outputs is called

A. Production function
B. Consumption function
C. Investment function
D. Saving function

Q26. Firms owned by one individual is known as

A. Proprietorship
B. Partnership
C. Corporations
D. None of the above

Q27. Firms owned by two or more individuals is known as

A. Proprietorship
B. Partnership
C. Corporations
D. None of the above

Q28. Firms owned by stock holders are known as

A. Proprietorship
B. Partnership
C. Corporations
D. None of the above

Q29. The major objective of a firm is

A. Profit maximization
B. Revenue maximization
C. Sales maximization
D. None of the above

Q30. Which one of the following is an example of fixed input

A. Raw materials
B. Casual workers
C. Plant and equipments
D. All of the above

Q31. In short-run

A. All inputs are fixed
B. All inputs are variable
C. Some inputs are fixed and some are variable
D. None of the above

Q32. In long-run

A. All inputs are fixed
B. All inputs are variable
C. Some inputs are fixed and some are variable
D. None of the above

Q33. Marginal product of a factor is

A. The additional product received by the firm due to the employment of an additional unit of a variable factor
B. Addition to the total product when one more unit of a factor is employed
C. The rate of change in the total product per unit change in the variable factor.
D. All of the above

Q34. Production function expresses

A. The relationship between input and output
B. How maximum output is produced with the given input
C. What is the least-cost combination of input to produce the given output
D. All of the above

Q35. The variable cost of a firm vary in direct proportion to the

A. Volume of its output
B. Extent of its profits
C. Volume of its sale
D. All of the above

Q36. Law of variable proportions is concerned with

A. Long-run production function
B. Laws of returns to scale
C. Short-run production function
D. None of the above

Q37. The ‘point of inflection’ come in which stage of the law of variable proportions

A. Stage I
B. Stage II
C. Stage III
D. None of the above

Q38. A rational producer will select his level of production in which stage of the law of variable proportions

A. Stage I
B. Stage II
C. Stage III
D. Either Stage I or Stage II

Q39. Total product reaches at maximum when

A. MP is increasing
B. MP is maximum
C. MP = 0
D. MP is negative

Q40. At the ‘point of inflection’

A. MP is maximum
B. AP is maximum
C. TP is maximum
D. All of the above