Higher Secondary Teacher Eligibility Test - 2025

Subject: Economics - Multiple Choice Questions

1. What is another name for the Theory of Distribution?
   A. Theory of Justice
   B. Cost Theory
   C. Pricing of Factors
   D. All of the above
   Answer: C. Pricing of Factors


2. What is the wage determination equation under perfect competition?
   A. AW = ARP = MW
   B. MRP < MW
   C. AW = MW = ARP = MRP
   D. MRP < MW
   Answer: C. AW = MW = ARP = MRP


3. "Interest is the reward for parting with liquidity" — Who said this?
   A. Keynes
   B. Marshall
   C. Pigou
   D. Robbins
   Answer: A. Keynes


4. What is the formula for Marginal Revenue Productivity (MRP) of a factor?
   A. MPP × MR (Marginal Physical Product × Marginal Revenue)
   B. MRP × MW
   C. MRP × MA
   D. None of the above
   Answer: A. MPP × MR
   Explanation: MPP = Marginal Physical Productivity, MR = Marginal Revenue


5. In the long run under perfect competition, what is the equilibrium point in the factor market?
   A. ARP = AFC (Average Revenue Productivity = Average Factor Cost)
   B. MRP = APC
   C. MRP = ARP = MFC = AFC
   D. MFC < MRP
   Answer: C. MRP = ARP = MFC = AFC
   Explanation: ARP = Average Revenue Productivity, MFC = Marginal Factor Cost, AFC = Average Factor Cost