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

111.
An indifference curve slopes down towards right since more of one commodity and less of another result in

A. Same satisfaction

B. Greater satisfaction

C. Maximum satisfaction

D. Decreasing expenditure

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112.
In the context of oligopoly, the kinked demand curve hypothesis is designed to explain

A. Price and output determination

B. Price rigidity

C. Price leadership

D. Collusion among rivals

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113.
Profit is maximum when

A. TC and TR curves are parallel

B. MC and MR curves are parallel

C. TC and TR curves cross each other

D. AC and AR curves cross each other

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114.
Supply curve will shift when

A. Price falls

B. Price rises

C. Demand shots

D. Technology changes

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115.
The Revealed Preference Theory deduces the inverse price-quantity relationship from

A. Assumption of indifference

B. Postulate of utility maximization

C. Observed behavior of the consumer

D. Introspection

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116.
Which form of market structure is characterised by interdependence in decision-making as between the different competing firms?

A. Oligopoly

B. Perfect competition

C. Imperfect competition

D. None of the above

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117.
In monopoly and perfect competition, the cost curves are

A. Same

B. Different

C. Opposite

D. None of the above

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118.
If price changes by 1% and supply changes by 2%, then supply is

A. Elastic

B. Inelastic

C. Indeterminate

D. Static

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119.
An ISO-product slopes

A. Downward to the left

B. Downward to the right

C. Upward to the left

D. Upward to the right

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120.
Which of the following is NOT the assumption of the Marginal Productivity Theory of Distribution?

A. Homogenity of a factor

B. Perfect competition in the factor market

C. All factors, except one, are variable

D. Given stock of each factor and full employment

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Economics MCQ Questions and Solutions with Explanations | Commerce

111. An indifference curve slopes down towards right since more of one commodity and less of another result in

Answer & Solution

112. In the context of oligopoly, the kinked demand curve hypothesis is designed to explain

Answer & Solution

113. Profit is maximum when

Answer & Solution

114. Supply curve will shift when

Answer & Solution

115. The Revealed Preference Theory deduces the inverse price-quantity relationship from

Answer & Solution

116. Which form of market structure is characterised by interdependence in decision-making as between the different competing firms?

Answer & Solution

117. In monopoly and perfect competition, the cost curves are

Answer & Solution

118. If price changes by 1% and supply changes by 2%, then supply is

Answer & Solution

119. An ISO-product slopes

Answer & Solution

120. Which of the following is NOT the assumption of the Marginal Productivity Theory of Distribution?

Answer & Solution

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111.
An indifference curve slopes down towards right since more of one commodity and less of another result in

112.
In the context of oligopoly, the kinked demand curve hypothesis is designed to explain

113.
Profit is maximum when

114.
Supply curve will shift when

115.
The Revealed Preference Theory deduces the inverse price-quantity relationship from

116.
Which form of market structure is characterised by interdependence in decision-making as between the different competing firms?

117.
In monopoly and perfect competition, the cost curves are

118.
If price changes by 1% and supply changes by 2%, then supply is

119.
An ISO-product slopes

120.
Which of the following is NOT the assumption of the Marginal Productivity Theory of Distribution?