BCA sixth semester Applied Economics 2023 MCQ with answersheet 2019 batch students
i) One of the goals of the macroeconomic policy is related to
a) controlling inflation
b) analyzing a consumer’s behavior
c) determining a firm’s profits
d) determining the price of a commodity
ii) If the income elasticity of demand for a commodity (EM) is negative, then the commodity is called
a) inferior
b) normal
c) neutral
d) none of all
iii) When the total utility received by an individual from consuming a commodity (TUx) reaches a maximum, the marginal utility (MUx) becomes
a) negative
b) zero
c) positive
d) none of the above
iv)Average fixed cost (AFC) is equal to the vertical distance between the
a) AC curve and the AVC curve
b) AC curve and the MC curve
c) AVC and the MC curve
d) all of the above
v) A firm in a market of perfect competition maximizes its profits when
a) TR = TC
b) TC > TR by the greatest amount
c) it is at the break-even point
d) TR > TC by the greatest amount
vi) The demand curve facing the monopolistic competitor is
a) negatively sloped and highly elastic
b) negatively sloped and highly inelastic
c) horizontal
d) infinitely elastic
vii) A Latin phrase ceteris paribus, frequently used in economics, means that
a) the model is logical
b) other factors are held constant
c) no other variable affects the dependent variable
d) no other model can explain the dependent variable
viii) In an open economy model. the gross doraestic product at market price (GDPup) is equal to
a) C + 1g + G + X,
b) C + In + G + Xn
c) C + Ig + G + X
d) W+ R+i+π + D
ix) Inflation is a situation having
a) a fall in the purchasing power of the monetary unit
c) a fall in the general price level
b) a rise in the purchasing power of the monetary unit
d) any of the above
x) An open economy refers to an economy that has
a) an economic relationship with the outside world
c) no economic relationship with the outside world
b) no government sector
d) no foreign sector
