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Microeconomics MCQs for UPPSC (UP) Exam
It covers all Important Questions with answers on Microeconomics for the UPPSC (UP) exam. The questions are based on important topics. Details about the questions:- Topic: Microeconomics
- Type of Questions: MCQs with solutions
- Number of Questions: 50
- You can attempt them on EduRev to score high in UPPSC (UP) exam.
Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.- a)Rs. 3,75,000
- b)Rs. 2,75,000
- c)Rs. 3,50,000
- d)Rs. 2,50,000
Correct answer is 'A'. Can you explain this answer?
Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.
a)
Rs. 3,75,000
b)
Rs. 2,75,000
c)
Rs. 3,50,000
d)
Rs. 2,50,000
 | Rithika Khanna answered |
Purchase of investment during the year Rs.3,75,000 i.e. 5,00,000 + 1,37,500 – 2,50,000 – 12,500 = 3,75,000
What is the other name for opportunity cost in economics- a)Total Cost
- b)Marginal cost
- c)Economic cost
- d)Economic problem
Correct answer is option 'C'. Can you explain this answer?
What is the other name for opportunity cost in economics
a)
Total Cost
b)
Marginal cost
c)
Economic cost
d)
Economic problem
 | Aryan Khanna answered |
Economic cost is the combination of losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another.
An economy always produces on, but not inside a PPC.- a)True
- b)False
- c)Occasionally
- d)Can’t say
Correct answer is option 'B'. Can you explain this answer?
An economy always produces on, but not inside a PPC.
a)
True
b)
False
c)
Occasionally
d)
Can’t say
| | Alok Mehta answered |
An economy does not always on a ppc . when an economy produces on ppc it mean there is no unemployment and all the resources are fully and being used efficiently but practically these 2 conditions may not apply . if there is unemployment or inefficent use of resources an ecnmy will opreate inside the ppc therefor the above given statement is refuted .
A budget constraint line is a result of?- a)Market price of commodity X
- b)Market price of commodity Y
- c)Income of the consumer
- d)All of above
Correct answer is option 'A'. Can you explain this answer?
A budget constraint line is a result of?
a)
Market price of commodity X
b)
Market price of commodity Y
c)
Income of the consumer
d)
All of above
 | Poonam Reddy answered |
A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices.
The want satisfying power of a commodity is known as:- a)Utility
- b)Consumption
- c)Supply
- d)Demand
Correct answer is option 'A'. Can you explain this answer?
The want satisfying power of a commodity is known as:
a)
Utility
b)
Consumption
c)
Supply
d)
Demand
| | Aryan Khanna answered |
The want satisfying power of a commodity is called utility. It is a quality possessed by a commodity or service to satisfy human wants. Utility can also be defined as value-in-use of a commodity because the satisfaction which we get from the consumption of a commodity is its value-in-use.
According to the law of diminishing marginal utility, _________?- a)Additional consumption always yields extra utility
- b)Additional consumption leads to lower average total utility
- c)Additional consumption always yields negative utility
- d)After a point any addition in the consumption causes a reduction in total utility.
Correct answer is option 'D'. Can you explain this answer?
According to the law of diminishing marginal utility, _________?
a)
Additional consumption always yields extra utility
b)
Additional consumption leads to lower average total utility
c)
Additional consumption always yields negative utility
d)
After a point any addition in the consumption causes a reduction in total utility.
| | Priya Patel answered |
According to the Law of Diminishing Marginal Utility, marginal utility of a good diminishes as an individual consumes more units of a good. In other words, as a consumer takes more units of a good, the extra utility or satisfaction that he derives from an extra unit of the good goes on falling.
It should be carefully noted that is the marginal utility and not the total utility than declines with the increase in the consumption of a good. The law of diminishing marginal utility means that the total utility increases but at a decreasing rate.
Can you explain the answer of this question below:Indifference curve represents?
- A:
Four commodities
- B:
Less than two commodities
- C:
Only two commodities
- D:
More than two commodities
The answer is C.
Indifference curve represents?
Four commodities
Less than two commodities
Only two commodities
More than two commodities
| | Alok Mehta answered |
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
Which of the following curve has a negative slope and cannot interest each other?- a)Isoquants
- b)Demand and supply curves
- c)Indifference curves
- d)None of above
Correct answer is option 'C'. Can you explain this answer?
Which of the following curve has a negative slope and cannot interest each other?
a)
Isoquants
b)
Demand and supply curves
c)
Indifference curves
d)
None of above
 | Vikas Kapoor answered |
An indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
The coefficient of price elasticity of demand is always- a)Zero
- b)Undefined
- c)Positive
- d)Negative
Correct answer is option 'D'. Can you explain this answer?
The coefficient of price elasticity of demand is always
a)
Zero
b)
Undefined
c)
Positive
d)
Negative
 | Jayant Mishra answered |
This ratio is often called the elasticity c
Can you explain the answer of this question below:This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
- A:
It helps consumers to make choices.
- B:
Utility is always measurable.
- C:
It is a satisfying power of a commodity.
- D:
It is purely a subjective entity.
The answer is B.
This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
It helps consumers to make choices.
Utility is always measurable.
It is a satisfying power of a commodity.
It is purely a subjective entity.
 | Priyanka Ravichandran answered |
B is the correct answer because utility is nothing but human satisfaction so it can't be measured
Cartels exist ina) Monopolyb) Duopolyc) Oligopolyd) Perfect Competition
Correct answer is option 'C'. Can you explain this answer?
Correct answer is option 'C'. Can you explain this answer?
 | Kavita Joshi answered |
A cartel is a grouping of producers that work together to protect their interests. Cartels are created when a few large producers decide to co-operate with respect to aspects of their market. Once
In the long run TPP changes with the change in which of the following factors- a)Fixed factors
- b)Variable factors
- c)Economic cost
- d)All the factors
Correct answer is option 'D'. Can you explain this answer?
In the long run TPP changes with the change in which of the following factors
a)
Fixed factors
b)
Variable factors
c)
Economic cost
d)
All the factors
 | Ishan Choudhury answered |
In the long run TPP changes with the change in all the factors is the right option because total product can be change in long run production function. After change every situation because in long run production more time should be taken by performer.
Opportunity cost is the- a)Next best alternative sacrificed
- b)Next best alternative chosen
- c)Next best alternative available
- d)Next best alternative produced
Correct answer is option 'A'. Can you explain this answer?
Opportunity cost is the
a)
Next best alternative sacrificed
b)
Next best alternative chosen
c)
Next best alternative available
d)
Next best alternative produced
 | Knowledge Hub answered |
“Opportunity cost” of a resource, means the value of the next-highest-valued alternative use of that resource.
E.g. you spend time and money going to a movie, you cannot spend that time at home playing video games, and you cannot spend the money on something else. If your next-best alternative to seeing the movie is playing video games at home, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not playing videos game at home.
E.g. you spend time and money going to a movie, you cannot spend that time at home playing video games, and you cannot spend the money on something else. If your next-best alternative to seeing the movie is playing video games at home, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not playing videos game at home.
Utility is measured in terms of?- a)Centimeter
- b)Seconds
- c)Gram
- d)Utils
Correct answer is option 'D'. Can you explain this answer?
Utility is measured in terms of?
a)
Centimeter
b)
Seconds
c)
Gram
d)
Utils
| | Alok Mehta answered |
It can be seen that utility is measured in numbers that are purely cardinal, rather than ordinal. The numbers used to measure utility (often in a unit called the "util") is useful only for comparison.
Total utility curve:- a)First falls and then rises
- b)Always falls
- c)Always rises
- d)First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
Correct answer is option 'D'. Can you explain this answer?
Total utility curve:
a)
First falls and then rises
b)
Always falls
c)
Always rises
d)
First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
| | Ishan Choudhury answered |
MU decrease then TU increases at decreasing rate till MU becomes zero. when MU zero then TU maximum and when MU gets negative TU starts fall
The firm and the industry are one and the same in:- a)Monopolistic competition
- b)Monopoly
- c)Duopoly
- d)Oligopoly
Correct answer is option 'B'. Can you explain this answer?
The firm and the industry are one and the same in:
a)
Monopolistic competition
b)
Monopoly
c)
Duopoly
d)
Oligopoly
| | Priya Patel answered |
A type of market structure, where the firm has absolute power to produce and sell a product or service having no close substitutes. In simple terms, monopolised market is one where there is a single seller, selling a product with no near substitutes to a large number of buyers. As the firm and industry are one and the same thing in the monopoly market, so it is a single-firm industry. There is zero or negative cross elasticity of demand for a monopoly product. Monopoly can be found in public utility services such as telephone, electricity and so on.
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?- a)Consumer surplus
- b)Price gap
- c)Consumer burden
- d)Optimum price
Correct answer is option 'A'. Can you explain this answer?
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
a)
Consumer surplus
b)
Price gap
c)
Consumer burden
d)
Optimum price
 | Devansh Goyal answered |
The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good. The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept. For producers, a surplus can be thought of as profit, because producers usually don't want to produce at a loss. The two together create an economic surplus.
Which of the following utility approach is based on the theory of Alfred Marshall?- a)Independent variable approach
- b)Cardinal utility approach
- c)Ordinal utility approach
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which of the following utility approach is based on the theory of Alfred Marshall?
a)
Independent variable approach
b)
Cardinal utility approach
c)
Ordinal utility approach
d)
None of these
| | Ishan Choudhury answered |
The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on. Here, one Util is equivalent to one rupee and the utility of money remains constant.
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