BA First Year (Sem 1 & 2) Economics – Daily Revision MCQ (English Medium)
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In which economic system are the means of production mainly owned and controlled by the state?
Chapter 2: Economic Systems: Capitalism, Socialism and Mixed Economy
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Answer: B. Socialism
Under socialism the state owns and controls the means of production and plans production; under capitalism they are privately owned.The cross elasticity of demand between two substitute goods, such as tea and coffee, is:
Chapter 4: Elasticity of Demand
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Answer: D. Positive
If the price of coffee rises, demand for tea rises too; both changes are in the same direction, so cross elasticity is positive.If the supply curve of a good is a vertical straight line, the elasticity of supply is:
Chapter 5: Theory of Supply and Elasticity of Supply
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Answer: A. Zero (perfectly inelastic)
A vertical supply curve means quantity supplied does not change at any price, so elasticity of supply is zero.If the market price is fixed above the equilibrium price, the market will have:
Chapter 6: Market Equilibrium and Price Determination
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Answer: C. Excess supply (surplus)
Above equilibrium price, sellers offer more than buyers want, so quantity supplied exceeds quantity demanded: a surplus.When total utility from a good reaches its maximum, the marginal utility is:
Chapter 7: Utility Analysis and Consumer Behaviour
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Answer: B. Zero
Total utility rises as long as marginal utility is positive; it is highest at the point where marginal utility becomes zero.The total cost of producing 4 units is ₹100 and of producing 5 units is ₹120. What is the marginal cost of the 5th unit?
Chapter 11: Cost and Revenue
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Answer: D. ₹20
Marginal cost is the addition to total cost from one more unit: ₹120 − ₹100 = ₹20.A market with many sellers selling differentiated products that are close substitutes (such as soaps or toothpastes) is called:
Chapter 13: Monopoly and Monopolistic Competition
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Answer: C. Monopolistic competition
Many sellers with product differentiation is the key feature of monopolistic competition; perfect competition has identical products and oligopoly has few sellers.The kinked demand curve model, which explains price rigidity under oligopoly, is associated with:
Chapter 14: Oligopoly
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Answer: A. Paul Sweezy
Paul Sweezy (1939) used the kinked demand curve to explain why prices stay stable under oligopoly.Wages expressed in terms of the goods and services that the money wage can buy are called:
Chapter 17: Theories of Wages
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Answer: B. Real wages
Real wages measure purchasing power: the goods and services a worker can actually buy with the money wage.The liquidity preference theory of interest was given by:
Chapter 18: Theories of Interest and Profit
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Answer: C. J. M. Keynes
Keynes explained interest as the reward for parting with liquidity, in his General Theory (1936).
BA First Year (Sem 1 & 2): MCQ in other subjects
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All questions are written by PadhaiNotes in our own words from the common syllabus of Maharashtra universities (NEP). Your own university's syllabus may differ a little.