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# Test: Theory Of Cost- 1

## 30 Questions MCQ Test Economics for CA CPT | Test: Theory Of Cost- 1

Description
This mock test of Test: Theory Of Cost- 1 for CA Foundation helps you for every CA Foundation entrance exam. This contains 30 Multiple Choice Questions for CA Foundation Test: Theory Of Cost- 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Theory Of Cost- 1 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: Theory Of Cost- 1 exercise for a better result in the exam. You can find other Test: Theory Of Cost- 1 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.
QUESTION: 1

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QUESTION: 2

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QUESTION: 3

### Which of the following curve is not U shaped?

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QUESTION: 4

Fixed cost is known as _______cost.

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Fixed costs are expenses that have to be paid by a company, independent of any specific business activities. Fixed cost is known as Overhead cost.

QUESTION: 5

The cost of resources owned and employed by the entrepreneur himself in his business is termed as ________ cost.

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QUESTION: 6

Direct cost is also known as:

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QUESTION: 7

A firm’s total cost is Rs. 200 at 5 units of output and Rs. 220 at 6 units of output. The marginal cost of producing 6th of output will be ______.

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QUESTION: 8

The change in total cost due to one unit change in the output is called _______ cost.

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QUESTION: 9

Long run price is also called by the name of ________.

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QUESTION: 10

Units          0    1  2    3   4
Total Cost 20  30 40  45  50
What will be the AFC at 4 units of output?

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QUESTION: 11

What will be marginal cost of 67 units of production accounting to the table given below: Solution:
QUESTION: 12

Cost in terms of pain, discomfort, disability involved in supplying the various factors of production by their owners are termed as________.

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QUESTION: 13

Supply curve remaining unchanged, an increase in demand will lead to.

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QUESTION: 14

What will be the TVC if we produce 2 units?
Units  0    1    2
TC    20  37  50

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QUESTION: 15 Calculate AFC at 2nd unit of output

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QUESTION: 16

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

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QUESTION: 17

Which of the following is known as Envelope curve?

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QUESTION: 18

The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of:

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QUESTION: 19

A firm’s average fixed cost is Rs. 20 at 6 units of output what will it be at 4 units of output?

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QUESTION: 20

When shape of average cost curve is upward, marginal cost :

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QUESTION: 21

Calculate AFC of 3 units form the following data:
Unit           0    1    2   3
Total cost 30  40  50  60

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QUESTION: 22

Which curve is never U-shaped?

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QUESTION: 23

Suppose, the total cost of production of commodity X is Rs. 1,25,000. Out of this cost implicit cost Rs. 35,000 and normal profit is Rs. 25,000. What will be the explicit cost of commodity X?

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QUESTION: 24

The total cost incurred for 10 units is Rs. 400 and 20 units is Rs. 800. Find the marginal cost.

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QUESTION: 25

Opportunity cost is :

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QUESTION: 26

Implicit cost may be defined as the :

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QUESTION: 27

A firm’s average fixed cost is Rs. 20 at 6 units of output. What will it be at 3 units of output?

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QUESTION: 28 Find Average Fixed cost of 3 units

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QUESTION: 29

Returns to scale will said to be in operation when quantity of:

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QUESTION: 30

External economies accrue due to ________:

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