Subject: Economics    / General Economics   


1. The advantages of specialization in which the specialist uses the same set of instruments all day is called

A. Freedom of choice of work

B. Same sets of tools all day

C. Using the same tools and materials constantly

D. Increased is associated with repetition

2. Factors that affect the volume of production include the following except

A. Standardisation

B. Specialisation

C. Socialisation

D. Simplification

3. The type of isoquants in which substitution between capital and labour is continuous over a certain range is known as

A. Input-output isoquant

B. Linear isoquant

C. Smooth, convex isoquant

D. Kinked isoquant

4. The general mathematical form of production function is Y=f(L, K, R, S, v, y).where S is

A. Land input

B. Labour input

C. Capital input

D. Returns to scale

5. Technical factors of production include the following except

A. Increased scope for division of labour

B. The demand for goods and services

C. The lowest common multiple

D. The nature of the processes involved in production

6. Under internal economies the sources of economies in which there may be certain overhead processes which must be undertaken if any output is to be produced, by which have the same scale regardless of the subsequent rate of output is

A. Unrelated processes

B. Area volume relationship

C. Indivisibilities

D. Overgead processes

7. One of the following is not the indicators of performance

A. Productivity measures

B. Advance profitability

C. Efficiency

D. Technological advances

8. In the short run, cost function is written as C=f(X, T, Pf, K). Where X is

A. Output

B. Technology

C. Total cost

D. Prices of factors

9. The components of fixed costs include the following except

A. Salaries of administrative staff

B. Expenses for building depreciation

C. Expenses for land maintenance and depreciation

D. Depreciation of industry

10. The change in TC which results from a unit change in output is

A. Long-run costs

B. Short-run costs

C. Marginal costs

D. Modern theory of costs

11. The unit of business organisation carrying some productive activity resulting in the creation of goods and services to satisfy wants is

A. Organisation

B. Firm

C. Market

D. Office

12. A market structure characterized by many small firms selling differentiated product is known as

A. Monopolistic competition

B. Perfect competition

C. Monopoly

D. None of the above

13. The first economist to develop oligopoly model is

A. Friedman’s

B. Keynes

C. Augustine cournot

D. Kinked

14. Determinant of market structure include the following except

A. Economies of scale

B. Efficiency

C. Government policy

D. Chance

15. The total growth of manufactured goods output can be separated into …….. Additives elements

A. 4

B. 3


D. 2

16. The degree to which production for or in a particular market or industry is concentrated in the hands of a few large firm is

A. Absolute concentration

B. Seller concentration

C. Aggregate concentration

D. Market concentration

17. The concentration which is adapt from the standard statistical theory and it measures the dispersion of market shares only is known as

A. Inequality concentration

B. Absolute concentration

C. Aggregate concentration

D. Market concentration

18. The intrinsic criteria of concentration include the following except

A. Merger condition

B. Entry condition

C. Sales conditions

D. Concentration curve ranking criterion

19. How many types of concentrated index did we have?

A. 5

B. 4

C. 6

D. 7

20. The most widely used concentration index is

A. Concentration ratio

B. Hirschman- Herfindahl index

C. Hannah and Kay indices

D. Entropy index

21. A statistical measure based upon the Lorenz curve is

A. The Lerner index

B. TheGini coefficient

C. The entropy index

D. The Lorenz index

22. One of the following is not a type of differentiation

A. Horizontal differentiation

B. Real differentiation

C. Perceived differentiation

D. Performance differentiation

23. Differentiation can be measure in the following ways except

A. Hedonic pricing

B. Cross elasticity of demand

C. Lerner index

D. The entropy index

24. One of the following is not a determinant of vertical integration

A. Monopoly

B. Tax relief

C. Costs savings

D. Technological independence

25. The term “vertical integration” is used in how many distinct ways in industrial economics

A. 2 distinct ways

B. 4 distinct ways

C. 5 distinct ways

D. 8 distinct ways

26. The delay between the time decision to produce is taken and when output is actually produced is called

A. Discrete lag

B. Supply lag

C. Distributive lag

D. Production lag

27. How many types of demand elasticity do we have


B. 2

C. 3

D. 4

28……….. Is define as the locus of points that yield the same level of utility or satisfaction by the consumer ‘s judgment

A. Difference curve

B. An indifference curve

C. Ration curve

D. Demand curve

29. When is the consumer in equilibrium in the case f one commodity?

A. When MU=P

B. When M=P

C. When MUx =Px

D.WhenMx =Px

30. The three sets of consumers c consist the following except

A. Family members

B. Consumer

C. Resource owner

D. Entrepreneur

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