Economics MCQ Questions and Solutions with Explanations

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-9

With regard to socialist economy, which of the following statement is correct?
(1) The factors of production are privately owned
(2) Economy is not regulated by the government
Select the correct answer

A) Only 1 B) Only 2 C) Both 1 and 2 D) Neither 1 nor 2

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Answer & Solution

Answer: Option D

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The demand curve facing a perfectly competitive firm is

A) upward sloping B) downward sloping C) horizontal D) vertical

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Answer & Solution

Answer: Option C

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If the demand curve confronting an individual firm is perfectly elastic, then

A) The firm is a price-taker B) The firm cannot influence the price C) The amount the firm supplies to the market is small relative to the total supply D) All of the above

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Answer & Solution

Answer: Option A

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If there were no changes in the quantity of food sold even when its price falls, we would know that

A) demand was entirely inelastic B) demand was entirely elastic C) demand was more elastic than one D) demand was unit elastic

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Answer & Solution

Answer: Option A

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In price discrimination under discriminating monopoly, given that the elasticity of demand in market I is 5 and in market II is 2.5 measured in absolute terms, how are the prices in the two markets related to each other?

A) Price in the market I is 2/3 of the price in market II B) Price in the market I is 3/4 of the price in Market II C) Price in the market I is 1/2 of the price in market II D) Price in the market I is equal to the price in market II

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Answer & Solution

Answer: Option B

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Can the demand curve move upwards from left to right?

A) Because of bad goods B) Performance C) Hypothesis D) All of the above

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Answer & Solution

Answer: Option D

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Who has stated that "profit is legalized robbery"?

A) Schumpeter B) Taussing C) Karl Marx D) Knight

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Answer & Solution

Answer: Option C

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Ordinal utility analysis of the consumer's behaviour is considered superior to the cardinal utility analysis mainly due to

A) assumption of the rationality of the consumer's behaviour B) possibility of the derivation of the consumer's demand C) bifurcation of price effects into income and substitution effects D) consideration of the available limited resources for satisfying consumer's demand

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Answer & Solution

Answer: Option C

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Which of the following does not influence the individual demand for a product?

A) Price of product B) Price of close substitute C) State of production technology D) Change in climatic condition

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Answer & Solution

Answer: Option C

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100

Which element can be included in the total interest?

A) Net interest B) Risk payoff/payment C) Both above D) None of the above

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Answer & Solution

Answer: Option C

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