Agricultural Economics MCQ 2023

Agricultural Economics MCQ (Multiple Choice Questions: 2023

Read MCQ on Agricultural Economics. Topics: Agricultural goods, Consumer’s equilibrium, Budget line, Indifference curve, Demand: Demand curve, elasticity of demand, Opportunity cost, nominal cost, Average marginal cost, GDP of India, LRAC,  Types of inputs, Law of variables.

Also read: Agricultural Economics Multiple Choice Questions

Agricultural Economics MCQ

Questione 01. Seeds and fertilizers are examples of

(a). Mono period goods
(b). Poly period goods
(c). Both a and b
(d). None of the above

Question 02. What is saturation point?

(a). Saturation point is the point where total utility is minimum and marginal utility is zero.
(b). Saturation point is the point where total utility is minimum and marginal utility is maximum.
(c). Saturation point is the point where total utility is maximum and marginal utility is zero.
(d). None of the above

Question 03. What are the assumptions of consumer’s equilibrium?

01: The consumer is rational, means he aims at the maximization of utility
02: Price of the commodity is given and remains constant
03: Law of diminishing marginal utility operates

(a). Only 1 is true
(b). Only 2 is true
(c). 1 and 2 are true
(d). All are true

Question 04. In consumer’s equilibrium: case of a single commodity

01: Consumer compares utility derived from each unit of the good consumed (marginal utility) with the money paid for it.
02: He consumes the next unit if marginal utility is lesser or at least equal to the price.
03:He stops at the point where for the next unit marginal utility is more than the price.

(a). 1 and 2 are true
(b). 2 and 3 are true
(c). Only 1 is true
(d). All are true

Question 05. In consumer’s equilibrium: case of more than one commodity

(a). In such a situation the consumer compares marginal utility of last unit of money spent on different goods, which are calculated by dividing marginal utility of a good by its price.
(b). Marginal utility of last unit of money (e.g. Rupee) spent on each good is same.
(c). Both a and
(d). None of the above

Also read: Microeconomics MCQ: Multiple Choice Questions

Budget line, Indifference curve, Demand, : Economics MCQ

Question 06. Which is not true about the budget line?

01: It is also known as the budget constraint
02: The slope of the budget line is dissimilar to the ratio of the cost of two commodities
03: The basic elements of the budget lines are consumer’s purchasing power and his value in market
04: Straight line indicates a continuous market rate of exchange in individual combinations
05: Real income line denotes the income and the spending size of a customer

(a). 1, 3 and 5.
(b). Only 2 and 3.
(c). Only 4 and 5
(d). 2, 3, 4 and 5.

Question 07. Which is not truly matched?

(a). The farther the Indifference curve from the origin: Satisfaction level is lower
(b). Marginal rate of substitution between goods X and Y is diminishing: The shape of indifference curve is concave to the origin
(c). The indifference curve analysis work on a simple graph: It is 3 dimensional
(d). None of the above

Question 08. Which of the following factor affects demand?

(a). Substitution effect
(b). Income effect
(c). Price of good
(d). All of the above

Question 09. What happens when there is an increase in demand?

(a). The demand curve shifts to the right and the good is called as a normal good
(b). The demand curve shifts to the left and the good is called as a normal good
(c). Both a and b
(d). None of the above

Question 10. Which of the following option doesn’t include type(s) of demand curve?

(a). Price demand, income demand
(b). Cross demand, derived demand
(c). Composite demand
(d). Normal demand

Question 11. Which is true about elasticity of demand

01: Price elasticity of demand: It is a measure of change in quantity of a commodity demanded in response to change in the price of that commodity.
02: Income Elasticity of demand: It is the magnitude of change in quantity demanded in response to change in the income of the consumer.
03: Cross elasticity of demand : It is a measure of change in quantity demanded in response to change in prices of other related commodities

(a). Only 1 is true
(b). Only 2 is true
(c). Only 3 is true
(d). A are true

Question 12. Which is not a method of measuring price elasticity of demand?

(a). Total expenditure method
(b). Percentage method
(c). Revenue method
(d). Curve elasticity method

Also read: Macroeconomics MCQ: Multiple Choice Questions

Cost Analysis

Question 13. What is the limitation of opportunity cost?

(a). Future returns cannot be predicted accurately using opportunity costs
(b). It is difficult to make quantitative comparison between two available alternatives
(c). Both a and b
(d). None of the above

Question 14. Which is also known as nominal cost?

(a). Real cost
(b). Economic cost
(c). Money cost
(d). Replacement cost

Question 15. Relationship between average and marginal cost

01: If MC < AC, then AC is falling
02: If MC > AC, then AC is rising
03: If MC = AC, then AC is constant

Which is true?

(a). Only 1 is true
(b). Only 2 is true
(c). Only 1 and 2 are true
(d). All are true

Question 16. In GDP by sector (FY 2022-23), what is the contribution of agriculture?

(a). 18.8%
(b). 17.8%
(c). 19.8%
(d). 16.8%

Question 17. What is the full form of LRAC?

(a). Large Run Average Cost
(b). Long Run Average Cost
(c). Least Run Average Cost
(d). None of the above

Question 18. LRAC curve is normally

(a). V shaped
(b). C shaped
(c). U shaped
(d). L shaped

Also read: Farm Management Economics Objective MCQ

Law of Variable

Question 19. Which is truly defined?

01: Fixed Input: Supply is inelastic in the short run and remains constant for a certain level of output.
02: Variable input: Supply in the short run is inelastic e.g. labour, raw material etc. In the long run all the inputs are not constant

(a). Only 1 is true
(b). Only 2 is true
(c). Both a and b are true
(d). None of the above

Question 20. What is the cause of application of law of variable proportion

(a). Change in input ratio
(b). Indivisibility of input
(c). Imperfect substitute
(d). All of the above

Also read: MCQ on MSP, Farm Budgeting and Agricultural Policy

Answer key

1.a6.b
2.c7.c
3.d8.d
4.c9.a
5.c10.d
11.d16.a
12.d17.b
13.c18.c
14.c19.a
15.d20.d

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