Economics MCQ Questions and Solutions with Explanations | Commerce

A. There is a transfer of income from consumers to the monopolist

B. There is welfare loss as resources tend to be misallocated under monopoly

C. Both A and B are incorrect

D. Both A and B are correct

A. Imperfect competition

B. Perfect competition

C. Monopoly

D. In A and B both

A. Terms of trade

B. Equilibrium price ratio

C. Exchange rate

D. Satisfaction level

A. Derived demand

B. Joint demand

C. Composite demand

D. None of the above

A. Price will decrease

B. Marginal productivity

C. Availability

D. Profitability

A. MRP = VMP

B. MRP > VMP

C. VMP > MRP

D. None of the above

A. Arithmetic average

B. Index numbers

C. Harmonic mean

D. Time series

A. Arithmetic mean of Laspeyre's and Paasche's index

B. Harmonic mean of Laspeyre's and Paasche's index

C. Geometric mean of Laspeyre's and Paasche's index

D. None of the above

A. Floating exchange rate system works on the market mechanism

B. Floating exchange rate breeds uncertainties and speculation

C. Economic and political factors and value judgement influence the choice of the exchange rate system

D. The system of floating exchange rate requires comprehensive government intervention

A. Welfare economics is based on value judgements

B. Welfare economics is also called 'economics with a heart'

C. Welfare economics focuses on questions about equity as well as efficiency

D. The founder of Welfare economics was Alfred Marshall