Applied Economics BCA Sixth Semester MCQ With Answersheet Batch 2020
Applied Ecconomics
Batch 2020
Exam held on. 2024 sep 06
Semester VI
Bachelor of computer application
i) in microeconomics, we study
- a) national income
- b) individual prices
- c) General Price level
- d) the economy as a whole
The correct answer is:
- b) individual prices
Microeconomics focuses on individual markets, prices, consumers, and businesses, whereas macroeconomics deals with broader economic factors like national income and the economy as a whole.
ii) if the income classify of demand for a commodity (EQ-M) is positive, then the commodity is called
a) inferior
b) neutral
c) normal
d) complementary
The correct answer is:
c) normal
If the income elasticity of demand for a commodity is positive, it means that as income increases, the demand for the commodity also increases, indicating that the commodity is normal.
iii) in the cardinal utility analysis of consumer behaviors the saturation point (MUx =0 ) is reached when TUx is
a) negative. b) positive. c) Zero. d) maximum
The correct answer is:
d) maximum
In cardinal utility analysis, the saturation point is reached when marginal utility (MUx) becomes zero, and at this point, the total utility (TUx) is at its maximum.
iv) one of the properties of indifference curve is that it is
a) negatively sloped
b) positively sloped
c) a horizontal line
d) none of all
The correct answer is:
- a) negatively sloped
An indifference curve is negatively sloped because it shows the trade-off between two goods while maintaining the same level of utility. As the quantity of one good increases, the quantity of the other must decrease to keep the consumer at the same level of satisfaction.
v) The Total variable of cost (TVC) in the traditional theory of the firm has
a) an S shape
b) a U shape
c) an inverse-U Shape
d) Broadly an inverse-S shape
The correct answer is:
a) an S shape
In the traditional theory of the firm, the Total Variable Cost (TVC) curve typically has an S-shape. Initially, TVC increases at a decreasing rate (due to increasing returns to the variable factor), then it increases at an increasing rate (due to diminishing returns to the variable factor).
vi) the goal of all firms in the market of perfect competition is
a) to maximize sales
b) to minimize cost
c) to maximize profit
d) to enhance social welfare
The correct answer is:
c) to maximize profit
In perfect competition, firms aim to maximize profit by producing at the level of output where marginal cost equals marginal revenue. Profit maximization is the primary goal of firms in such markets.
vii) while measuring national income, intermediate goods are not included in order to
a) avoid double counting
b) reduce national income
c) increase national income
d) achieve social justice
The correct answer is:
a) avoid double counting
Intermediate goods are not included in national income calculations to avoid double counting, as their value is already captured in the price of final goods. Including them would artificially inflate the national income.
viii) inflation is a situation in which
a) prices are falling
b) prices are rising continuously
c) the value of money is rising
d) production is rising
The correct answer is:
b) prices are rising continuously
Inflation refers to a sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.
ix) one of the goals of monetary policies is
a) to achieve price stability
b) to increase employment
c) to reduce corruption
d) to increase economic growth
The correct answer is:
a) to achieve price stability
One of the primary goals of monetary policy is to achieve price stability by controlling inflation and stabilizing the value of money. Central banks use tools such as interest rates and reserve requirements to manage inflation and keep the economy stable.
x) oligopoly is the market structure in which there are
a) few sellers of commodities
b) one seller of a commodity
c) many sellers of commodities
d) no sellers of commodities.
The correct answer is:
a) few sellers of commodities
Oligopoly is a market structure where a small number of firms or sellers dominate the market, often leading to interdependence in decision-making and potential for collusion.
