Important Economics General knowledge question answer set 3 for competitive exam preparation. Download economics GK online question answer for exam preparation. Objective question answer of economics GK important for government competitive exams like- Banking exam, IBPS exam, SBI exam, UPSC, SSC, Railway, TET, CTET and other state level and central government exams.

Economics GK Sample Question Paper:

1.The object of every producing firm is—
(A) To maximise production
(B) To minimise cost
(C) To maximise profit
(D) None of the above
Answer : (C)

2. In the long-run, perfect competitive firm gets—
(A) Only normal profit
(B) Abnormal profit
(C) Loss
(D) Any of the above
Answer : (A)

 3. In perfect competition average revenue curve is—
(A) Parallel to x-axis
(B) Parallel to y-axis
(C) Slopes down from left to right
(D) Slopes upward from left to right
Answer : (A)

4. Selling cost is a must in—
(A) Pure monopoly
(B) Perfect competition
(C) Imperfect competition
(D) All of the above
Answer : (C)

5.The price of a commodity is determined where—
supply >(A) Demand
supply <(B) Demand
(C) Demand = supply
(D) None of the above
Answer : (C)

6. Quasi Rent is—
(A) Equal to firm’s total profit
(B) More than firm’s total profit
(C) Less than firm’s total profit
(D) None of the above
Answer : (D)

7. Which of the following cannot be accepted a factor of production?
(A) Land
(B) Labour
(C) Light of sun 
(D) Capital
Answer : (C) 

8. In perfect competition, the demand for a commodity is—
(A) Elastic 
(B) Perfectly elastic
(C) Inelastic 
(D) Perfectly inelastic
Answer : (B) 

9. Which equation is correct under normal profit?
(A) AR = AC 
AC >(B) AR
AC <(C) AR  
(D) AR = AC = 0
Answer : (A) 

10. What is minimum price acceptable to a firm in the short-period?
(A) Equal to AC 
(B) Equal to AVC
(C) Equal to AFC 
(D) Equal to TC
Answer : (B)

➡ GK Question Answer Set for Bank PO Exam Preparation

11. Who determines price under perfect competition?
(A) Representative firm
(B) Industry
(C) Normal firm
(D) Government
Answer : (B)

12. Which commodity can be called as Giffen commodity?
(A) Inferior commodity
(B) Superior commodity
(C) Any of above
(D) None of the above
Answer : (A)

13. Marshall’s representative firm is a long-run average firm while optimum firm is a—
(A) Maximum cost firm
(B) Minimum cost firm
(C) Marginal cost firm
(D) Average cost firm
Answer : (B)

14. Land is the only factor of production whose supply is ?
(A) More Elastic
(B) Perfectly Elastic
(C) Perfectly Inelastic
(D) Unitary Elastic
Answer : (C)

15. Which condition is not found in perfect competition ?
(A) Many buyers and sellers
(B) Perfect knowledge about market conditions
(C) Product differentiation
(D) Perfect factor-mobility
Answer : (C)

16. Demand curve of a firm under perfect competition is—
(A) Perfectly Inelastic
(B) Perfectly Elastic
(C) More Elastic 
(D) Less Elastic
Answer : (B) 

17. In which market, a firm cannot determine price ?
(A) Perfect competition
(B) Monopoly
(C) Monopolistic competition
(D) Oligopoly
Answer : (A) 

18. Opportunity cost of a factor is known as—
(A) Transfer earning
(B) Money cost
(C) Present earning
(D) None of the above
Answer : (A) 

19. Which of the following equation is correct for perfect competition ?
(A) AR = MR = Price 
MR >(B) AR
MR <(C) AR  
MR >(D) Price
Answer : (A) 

20. Which category of land is rent less land ?
(A) First category of land
(B) Second category of land
(C) Third category of land
(D) Marginal land
Answer : (D)

➡ General Knowledge Question Answer for Exam Preparation