Economics MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16

1.
Marginal revenue is always less than price at all levels of output in

A. Perfect competition

B. Monopoly

C. Both 'a' and 'b'

D. None of the above

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2.
What does price elasticity of demand measure?

A. Change in price caused by changes in demand

B. The rate of change of sales

C. The responsiveness of demand to price changes

D. The value of sales at a given price

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3.
The elasticity of substitution between two perfect substitutions is

A. Zero

B. Greater than zero

C. Less than infinity

D. Infinity

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4.
Which of the following is NOT a characteristic of perfect competition?

A. Free entry and exit of the firms

B. The demand curve of firm is horizontal

C. The marginal revenue curve is horizontal

D. An individual firm can influence the price

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5.
When marginal revenue is zero, total revenue is

A. Maximum

B. Minimum

C. Zero

D. Decreasing

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6.
Which one is increasing function of price?

A. Demand

B. Utility

C. Supply

D. Consumption

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7.
The consumer is in equilibrium at a point where the budget line

A. Is above an indifference curve

B. Is below an indifference curve

C. Is tangent to an indifference curve

D. Cuts an indifference curve

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8.
Which of the following oligopoly models is concerned with the maximization of joint profits?

A. Price leadership model

B. Bertrand's model

C. Collusive model

D. Edgeworth's model

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9.
A firm decides to exit the industry when

A. AC starts rising

B. MC starts rising

C. Price is less than LAC

D. TC starts rising

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10.
It describes the law of supply

A. Supply curve

B. Supply schedule

C. Supply equation

D. All of the above

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Economics MCQ Questions and Solutions with Explanations | Commerce

1. Marginal revenue is always less than price at all levels of output in

Answer & Solution

2. What does price elasticity of demand measure?

Answer & Solution

3. The elasticity of substitution between two perfect substitutions is

Answer & Solution

4. Which of the following is NOT a characteristic of perfect competition?

Answer & Solution

5. When marginal revenue is zero, total revenue is

Answer & Solution

6. Which one is increasing function of price?

Answer & Solution

7. The consumer is in equilibrium at a point where the budget line

Answer & Solution

8. Which of the following oligopoly models is concerned with the maximization of joint profits?

Answer & Solution

9. A firm decides to exit the industry when

Answer & Solution

10. It describes the law of supply

Answer & Solution

Read More Section(Economics)

1.
Marginal revenue is always less than price at all levels of output in

2.
What does price elasticity of demand measure?

3.
The elasticity of substitution between two perfect substitutions is

4.
Which of the following is NOT a characteristic of perfect competition?

5.
When marginal revenue is zero, total revenue is

6.
Which one is increasing function of price?

7.
The consumer is in equilibrium at a point where the budget line

8.
Which of the following oligopoly models is concerned with the maximization of joint profits?

9.
A firm decides to exit the industry when

10.
It describes the law of supply