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-2 section-14

If the demand for a good is price elastic, a fall in its price will lead to:
(i) A rise in sales
(ii) A fall in sales
(iii) A rise in total expenditure on the good
(iv) A fall in total expenditure on the good

A) (i) and (iii) only B) (i) and (vi) only C) (ii) and (iii) only D) (ii) and (iv) only

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Answer & Solution

Answer: Option A

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'Price Pool' is formed to:

A) Increase prices only B) Decrease prices only C) Determine a price policy D) Determine a sales policy

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Answer & Solution

Answer: Option C

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When the price of a substitute of commodity X falls, the demand for X-

A) rises B) falls C) remains unchanged D) any of the above

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Answer & Solution

Answer: Option B

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The assessment of national income is prepared by

A) Reserve Bank of India B) Ministry of finance C) Central statical organization D) Planning commission

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Answer & Solution

Answer: Option C

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Cardinal measure of utility is required in:

A) Utility theory B) Indifference curve analysis C) Revealed preference D) Inferior good

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Answer & Solution

Answer: Option A

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A person is obliged to choose between buying a sewing-machine and a radio. He buys the radio. The opportunity cost of the radio may be said to be

A) the satisfaction obtained from its purchase B) the sewing-machine he had to do without C) the scarcity value of the radio in money terms D) the average cost of both commodities

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Answer & Solution

Answer: Option B

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'Consumer-equilibrium' means

A) that maximum satisfaction is obtained at minimum sacrifice B) that the consumer is in static and unsatisfactory position C) that all consumers reach the highest indifference curve D) that equilibrium of buyers matches with the equilibrium of sellers

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Answer & Solution

Answer: Option A

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Along an indifference curve, if the marginal rate of substitution is 3, then the consumer is willing to

A) Pay for one unit of the good measured along the Y-axis B) Given up one unit of the good measured along the Y-axis for three units of the good measured along the X-axis C) Given up three units of the good measured along the Y-axis for one unit of income, i.e., Rs. 1 of income D) Given up three units of the good measured along the Y-axis for one unit of the good measured along the X-axis

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Answer & Solution

Answer: Option D

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The long-run supply curve of a perfectly competitive firm

A) Is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average variable cost curve B) Is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve C) Is equal to that portion of the long-run average total cost curve that is above the relevant short-run average variable cost curve D) None of the above

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Answer & Solution

Answer: Option B

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Normally Demand curve slopes

A) Upward B) Downward C) Horizontal D) Vertical

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Answer & Solution

Answer: Option B

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