BA First Year (Sem 1 & 2) Economics – Daily Revision MCQ (English Medium)
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Who defined economics as the science that studies human behaviour as a relationship between ends and scarce means which have alternative uses?
Chapter 1: Introduction to Economics
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Answer: C. Lionel Robbins
This is Lionel Robbins's scarcity definition (1932); Adam Smith gave the wealth definition and Marshall the welfare definition.According to the law of demand, other things remaining the same, the relationship between the price of a good and its quantity demanded is:
Chapter 3: Theory of Demand
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Answer: B. Inverse
When price rises, quantity demanded falls, and when price falls, it rises, so the relationship is inverse and the demand curve slopes downward.Price rises from ₹10 to ₹12 and quantity demanded falls from 100 units to 80 units. Using the percentage method (on initial values), what is the price elasticity of demand?
Chapter 4: Elasticity of Demand
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Answer: A. 1 (unitary elastic)
% change in quantity = 20/100 = 20%; % change in price = 2/10 = 20%; so elasticity = 20% ÷ 20% = 1.The law of diminishing marginal utility is also known as:
Chapter 7: Utility Analysis and Consumer Behaviour
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Answer: D. Gossen's first law
H. H. Gossen first stated it, so it is called Gossen's first law; Marshall later explained it in detail.An indifference curve is normally convex to the origin because of:
Chapter 8: Indifference Curve Analysis
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Answer: B. Diminishing marginal rate of substitution
As a consumer gets more of X, they give up fewer units of Y for each extra X (diminishing MRS), which makes the curve convex.A consumer is willing to pay ₹50 for a book but buys it at its market price of ₹35. What is the consumer surplus?
Chapter 9: Consumer Surplus
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Answer: C. ₹15
Consumer surplus = price willing to pay − price actually paid = 50 − 35 = ₹15 (Marshall's concept).The law of variable proportions applies when:
Chapter 10: Theory of Production
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Answer: A. At least one factor of production is fixed (short run)
The law of variable proportions is a short-run law: one factor is fixed and others are varied. Changing all factors together is returns to scale.A firm's total fixed cost is ₹200 and its total variable cost for 10 units is ₹300. What is the average cost (AC) of producing 10 units?
Chapter 11: Cost and Revenue
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Answer: D. ₹50
TC = TFC + TVC = 200 + 300 = ₹500; AC = TC ÷ output = 500 ÷ 10 = ₹50.Under perfect competition, the demand (average revenue) curve facing an individual firm is:
Chapter 12: Perfect Competition
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Answer: B. Perfectly elastic (horizontal)
The firm is a price taker: it can sell any quantity at the market price, so AR = MR = price and the curve is horizontal.According to David Ricardo, rent is paid for the use of the:
Chapter 16: Theories of Rent
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Answer: A. Original and indestructible powers of the soil
Ricardo defined rent as payment for the original and indestructible powers of the soil. It arises from differences in fertility (and situation) of land.
BA First Year (Sem 1 & 2): MCQ in other subjects
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.