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-3

Risks in the business arise because of

A) Introduction of the new products B) Uncertain policy of rival firms C) Changes in tastes D) All of the above

Discuss

Answer & Solution

Answer: Option D

Solution:

Risks in the business arise because of Introduction of the new products, Uncertain policy of rival firms and Changes in tastes.

Indifference curves are convex to the origin because

A) Two goods are perfect substitutes B) Two goods are imperfect substitutes C) Two goods are perfect complementary goods D) None of the above

Discuss

Answer & Solution

Answer: Option B

Solution:

Indifference curves are convex to the origin because two goods are imperfect substitutes.

Standard of living of a country can be raised if it increases

A) Labour force B) Production C) Money supply D) Exports

Discuss

Answer & Solution

Answer: Option B

Solution:

Standard of living of a country can be raised if it increases Production. Labor productivity is a measure of the amount of goods and services that the average worker produces in an hour of work. The level of productivity is the single most important determinant of a country's standard of living, with faster productivity growth leading to an increasingly better standard of living.

Standard of living of a country can be raised if it increases

A) Labour force B) Production C) Money supply D) Exports

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

According to Malthus, population increases by progression of which kind?

A) Systematic B) Arithmetic C) Geometric D) Automatic

Discuss

Answer & Solution

Answer: Option C

Solution:

According to Malthus, population increases by progression of Geometric.

Profit is maximum when

A) Distance between TR and TC is maximum B) Distance between AR and AC is maximum C) Distance between MR and MC is maximum D) None of the above

Discuss

Answer & Solution

Answer: Option A

Solution:

Profit is maximum when Distance between TR and TC is maximum. At the equilibrium point, the firm earns maximum profits.

In Monopoly at various output levels

A) AR = MR B) AR < MR C) AR > MR D) None of the above

Discuss

Answer & Solution

Answer: Option C

Solution:

A firm under monopoly faces a downward sloping demand curve or average revenue curve. In monopoly, since average revenue falls as more units of output are sold, the marginal revenue is less than the average revenue. In other words, under monopoly the MR curve lies below the AR curve.

All labour is

A) Homogeneous B) Heterogeneous C) Lazy D) Intelligent

Discuss

Answer & Solution

Answer: Option B

Solution:

All labour is Heterogeneous.

All labour is

A) Homogeneous B) Heterogeneous C) Lazy D) Intelligent

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Mobility of labour

A) Increases efficiency of labour B) Spoils labour C) Increases division of labour D) a' and 'c' both

Discuss

Answer & Solution

Answer: Option D

Solution:

Mobility of labour Increases efficiency of labour and also increases division of labour.