Economics · Commerce Accountancy

Microeconomics and Pricing

1,413 Questions

Microeconomics and pricing analyze market structures, consumer utility, marginal cost, and strategic pricing models like predatory pricing. These foundational economic concepts are regularly featured in civil services and state administrative examinations. Solve these practice questions to understand market equilibrium, demand elasticity, and competitive firm behavior.

Market equilibrium pricingIncome elasticity of demandMarginal cost conceptsUtility functions analysisPredatory pricing strategiesOligopoly market structures

Microeconomics and Pricing Questions

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

Administered prices means:

  1. Prices fixed by private sector under the guidance of government

  2. Prices fixed by consumer forums

  3. Prices fixed by the Government and private sector

  4. Prices level fixed by the Government
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Administered prices are prices set by a government authority rather than being determined solely by market forces of supply and demand. This is often done to protect consumers or ensure stability in essential goods.

Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

Primary and Secondary markets.

  1. Compete with each other

  2. Complement each other

  3. Function independently

  4. Control each other
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Primary and secondary markets complement each other. ... Secondary market deals in the purchase and sale of the existing securities. That is, once the securities are issued in primary market, they are then traded in the secondary market. It is in this sense that both the markets complement each other.

Multiple choice economics agriculture sector profile of indian agriculture and agricultural marketing role of agriculture sector foreign trade in india

The situation of excess demand can be tackled by ______.

  1. Rationing

  2. Queue system

  3. Tie in sale

  4. All the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Excess demand occurs when aggregate demand exceeds supply. Rationing, queue systems, and tie-in sales are all administrative or market-based methods used to manage shortages.

Multiple choice organization of commerce and management consumerism the consumer protection act, 1986 consumer protection commerce

A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are ____________________.

  1. Maximum possible positive

  2. Minimum possible positive

  3. Equal

  4. zero
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the law of equi-marginal utility, a consumer is in equilibrium when the ratio of marginal utility to price is equal for all goods consumed.

Multiple choice organization of commerce and management consumerism the consumer protection act, 1986 consumer protection commerce

Match the following:

A. Various combinations of two commodities that a consumer can purchase 1.  Indifference map
B. Various combinations of two commodities that give consumer equal satisfaction 2. Indifference curve
C.  A set of indifference curves 3. Budget line
D. Point of agency of a budget line and an indifference curve 4. Consumer's equilibrium

  1. A-1, B-2, C-4, D-3

  2. A-4, B-3, C-2, D-1

  3. A-2, B-3, C-4, D-1

  4. A-3, B-2, C-1, D-4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
a) Various combinations of two commodities that a consumer can purchase is depicted by the budget line.
b) Various combinations of two commodities that give consumer equal satisfaction is depicted by an indifference curve.c) A set of indifference curves is known as indifference map.d) Point of agency of a budget line and an indifference curve is known as consumer's equilibrium point.

Multiple choice elements of accounts ratio analysis activity (or turnover) ratios accounting ratio's accounting ratios

Falling demand for the product in the market indicated by ________________.

  1. Finished goods turnover ratio

  2. Work in progress turnover ratio

  3. Net profit ratio

  4. Gross profit ratio
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A falling finished goods turnover ratio indicates that goods are not being sold as quickly as they are produced, which suggests a decline in market demand for the product.

Multiple choice economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

In the stage of Diminishing Returns, Marginal Product (MP)-

  1. First increases, reaches a maximum and then decreases

  2. Decreases

  3. Increases

  4. Remains constant
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

By definition, the stage of diminishing returns is characterized by a declining marginal product of the variable factor.

Multiple choice economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

If a change in scale inputs leads to a proportional change in the output, it is a case of-

  1. Increasing Returns to Scale

  2. Constant Returns to Scale

  3. Diminishing Returns to Scale

  4. Variable Returns to Scale
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Constant returns to scale occur when a proportional increase in all inputs leads to an exactly proportional increase in output.

Multiple choice economics laws of returns - returns to a factor and returns to scale total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function

A rational producer will always operate in which stage of law of variable proportion?

  1. increasing returns.

  2. diminishing returns.

  3. constant returns.

  4. negative returns.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A rational producer operates in the second stage of the law of variable proportions. In the first stage, marginal product is rising, and in the third stage, marginal product is negative, making both inefficient for production.

Multiple choice geography food security in india components of food security government measures for food security important index numbers

The minimum guaranteed price at which the government offers to purchase any quantity is known as ______.

  1. Procurement price

  2. Minimum Support Price

  3. Issue price

  4. Market price
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Minimum Support Price (MSP) is announced by the Government of India at the beginning of the sowing season for certain crops. The MSP is a guarantee price for farmers.

Multiple choice geography food security in india components of food security government measures for food security important index numbers

Minimum Support Price is decided by the ___________.

  1. Farmers

  2. Government

  3. Mediators

  4. Traders
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Minimum Support Price (MSP) is decided by the government. This is the price at which the government pays to the farmers for their produce. Government buys the crops from farmers at MSP and then sell it in the market. This policy helps the farmers as they get a fixed amount for their produce no matter what the market price is. And also they don’t have to look after the distribution of the produce. 

Multiple choice business maths linear programming problems structure of linear programming model linear programming problem operations research

Mark the wrong statement:

  1. The primal and dual have equal number of variables.

  2. The shadow price indicates the change in the value of the objective function, per unit increase in the value of the RHS.

  3. The shadow price of a non-binding constraint is always equal to zero.

  4. The information about shadow price of a constraint is important since it may be possible to purchase or, otherwise, acquire additional units of the concerned resource.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The number of variables in dual is equal to the number of constraints in the primal and the  number of variables in primal is equal to the number of constraints in the dual.


Therefore, the primal and dual doesn't have equal number of variables.