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Economics MCQ Questions and Solutions with Explanations | Commerce

Economics MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Economics MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-1

Each section contains 100 MCQs on Economics .
91
If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be
Discuss
Answer & Solution
Answer: Option B
Solution:
If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be Vertical.
92
The situation of monopolistic competition is created by
Discuss
Answer & Solution
Answer: Option D
Solution:
The situation of monopolistic competition is created by Small number of producers of a commodity, Lack of homogeneity of the product produced by different firms and Imperfection of the market for that product.
93
In case of perfect competition in the market
Discuss
Answer & Solution
Answer: Option C
Solution:
In case of perfect competition in the market marginal revenue is always equal to average revenue. They coincide because marginal revenue is equal to average revenue at every output quantity. The equality between marginal revenue and average revenue is the result of perfect competition.
94
Demand is a function of
Discuss
Answer & Solution
Answer: Option A
Solution:
Demand is a function of Price. An increase in the price of the commodity decrease the demand for that commodity, while the decrease in price increases its demand.
95
The budget line is also known as the
Discuss
Answer & Solution
Answer: Option D
Solution:
The budget line is also known as the Consumption possibility line. The CPF, or consumption–possibility frontier, is the budget constraint where participants in international trade can consume.
96
Discriminating monopoly implies that the monopolist charges different prices for its commodity
Discuss
Answer & Solution
Answer: Option D
Solution:
Discriminating monopoly implies that the monopolist charges different prices for its commodity From different groups of consumers, for different uses and at different places.
97
The major difference between perfect competition and monopolistic competition is
Discuss
Answer & Solution
Answer: Option B
Solution:
The major difference between perfect competition and monopolistic competition is differentiated product. Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.
98
If price and total revenue move in the same direction, then demand is
Discuss
Answer & Solution
Answer: Option A
Solution:
If price and total revenue move in the same direction, then demand is Inelastic. If you decrease the good's price, a large increase occurs in quantity demanded, and total revenue increases.
99
Which one is not a assumption of the theory of demand based on analysis of indifference curves?
Discuss
Answer & Solution
Answer: Option C
Solution:
Constant marginal utility of money is not a assumption of the theory of demand based on analysis of indifference curves. An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent.
100
Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is
Discuss
Answer & Solution
Answer: Option B
Solution:
Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is different.