GK - Economics Test

GK - Economics Test - 01

1. A firm is said to be of optimum size when

a. average total cost is at a minimum

b. marginal cost is at a minimum

c. marginal cost is equal to marginal revenue

d. the firm is maximising its profit

2. When average cost increases marginal cost is

a. below average cost

b. above average cost

c. equal to average variable cost

d. equal to average cost

3. Development means economic growth plus

4. Which of the following commodity groups is/are considered for working out average index ?
(i) Fuel groups
(ii) Primary articles
(iii) Manufactured products

5. Which one of the following is not a flow concept ?

6. If the elasticity of demand for a good is equal to (-)2 then a 1 percent price rise will

a. raise the quantity demanded by 2 percent

b. raise the total revenue by 1 percent

c. lower the quantity demanded by 2 percent

d. lower the quantity demanded by 1 percent

7. Which of the following is the most likely reason why total income tends to fluctuate ?

a. Consumption is not always a constant fraction of income

b. People adjust to changing incomes by changing saving habits

c. Consumption habits often undergo dramatic changes

d. Many savings and investment decisions are taken by different people

8. In a capitalist economy, the pattern of output is determined

a. by the demand and supply powers

b. by the central authority

c. according to the decisions of the owners of firms

d. according to customs

9. Perfect competition is said to exist if

a. firms are not independent of each other

b. each firm in the industry accepts the market price because it has to

c. the industry consists of a small number of firms

d. the demand curve for the industry is perfectly elastic

10. If income is below equilibrium

a. income will tend to rise

b. investment will tend to fall

c. prices will tend to fall

d. stocks of unsold goods will tend to increase

Unreal Travel Destinations in Europe

Hundertwasser House

You cant miss this distinctive apartment building in Vienna, Austria. People from all over the world come to appreciate the unique architecture.

General Knowledge

Unreal Travel Destinations in Europe

Hundertwasser House