Sample Paper Series- II - CA Foundation MCQ

Monopolistic competition

Perfect competition

Oligopoly

Monopoly

Total Product declines, MP is positive

Total Product declines, MP is Zero

Total Product declines, MP is negative

Total Product in constant, MP is constant

Negative relationship

Inverse relationship

No relationship

Positive relationship

Falling

Rising

Below average cost curve

None of the above

Rise in the price of good

Fall in the prices of other goods

Fall in the prices of factors of production

All of the above

Luxury

Necessities

Salt

Perishable goods

Output is restricted to the limited availability of resources

Consumers do not have as much money as they would wish

There will always be certain level of unemployment

Resources are not always allocated in an optimum way

Does not apply to rich, developed countries

Does not apply to poor, under developed countries

Implies only to socialist economies.

Implies that all consumer wants will never be completely satisfied.

Marginal revenue is less than price

Marginal revenue is equal to price

Marginal revenue is greater than price

The relationship between marginal revenue and price is indeterminate

His output is maximum

He charges high price

His average cost is minimum

His marginal cost is equal to marginal revenue

Excess capacity always exists

Excess capacity never exists

Excess capacity may or may not exist

None of the above

Monopolistic Competition 

Monopoly

Oligopoly

Perfect Competition

MR = AR + [e-1/e]

MR = AR × [e-1/e]

AR = MR × [e-1/e]

MR = AR × [e/e – 1]

Average cost

Marginal revenue

Demand

Supply

Positive Science

Normative Science

Both (a) and (b)

None of the above

Right of private property

Freedom of choice by the consumers

No profit, No Loss motive

Competition

The consumer is rational and possesses full information about all the aspects of economic environment

The consumer is not capable of ranking all combinations

If consumer prefers combination A to B, and B to C, then he must prefer combination A to C

If combination A has more commodities than combination B, then A must be preferred to B.

Zero

Infinite 

Equal to one

Greater than zero but less than infinity

When AP becomes Zero

When MP becomes Zero

At the intersec ting point of AP and M P

When MP is highest

Buying land and building

Hire charges of machinery

Insurance premium

Material bought

Marginal cost is always less than the average cost.

Marginal cost is always more than the average cost.

Marginal cost is always equal to the average cost at its minimum point.

Marginal cost is always equal to the average cost

Must be decreasing

Must be above the average cost curve

Must be constant

Must be equal to average cost

380

280

60

400

MC

AVC

TFC 

None of the above

When marginal utility is constant

When marginal utility is greater than price of the good

When marginal utility is less than price of the good

When marginal utility is equal to price of the good

Stock concept

Flow Concept

Both (a) and (b)

None of the above

Initiating a business enterprise and resource co-ordination

Risk bearing or uncertainty bearing

Innovation

Mobilisation of savings

A higher level of satisfaction

A higher level of production

A higher level of income

None of the above

Zero

Positive

Negative

None of the above

Inelastic

Elastic

Perfectly Elastic

Perfec tly Inelastic