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-3 section-10

When there is monopoly in the product market and monopsony in the labour market, wages will be-

A) less than the marginal productivity of labour B) more than the marginal productivity of labour C) equal to the marginal productivity of labour D) equal to the wages set by the trade unions

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Answer & Solution

Answer: Option A

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The condition required for consumer equilibrium is

A) $$\frac{{M{U_x}}}{{M{U_y}}} > \frac{{{P_x}}}{{{P_y}}}$$ B) $$\frac{{M{U_x}}}{{M{U_y}}} < \frac{{{P_x}}}{{{P_y}}}$$ C) $$\frac{{M{U_x}}}{{M{U_y}}} = \frac{{{P_x}}}{{{P_y}}}$$ D) None of these

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Answer & Solution

Answer: Option C

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Demand is defined as

A) Wilingness to purchase B) Consent to purchase C) Ability to pay D) Willingness to buy on the basis of sufficient purchasing power and consent

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Answer & Solution

Answer: Option D

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In monopolistic competition we expect-

A) low cross elasticity of demand B) zero cross elasticity of demand C) infinite cross elasticity of demand D) unit cross elasticity of demand equal to one

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Answer & Solution

Answer: Option C

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Consider the following statements.
1. Business economics is a special branch of economics applied in business decision-making.
2. The nature of business economics is applied not theoretical.
3. The nature of business economics is based on micro economics.
Which of the statement(s) given above is/are correct?

A) Only 1 B) Both 1 and 3 C) Both 2 and 3 D) All of the above

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Answer & Solution

Answer: Option D

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A collusive oligopoly (with a dominant price leader) will produce a level of output

A) That would prevail under perfect competition B) Between that which would prevail under perfect competition, and that which a monopolistic competitor would choose in the same industry C) Between that which would prevail under perfect competition, and that which a monopolist would choose in the same industry D) Equal to that a monopolist would choose in the same industry

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Answer & Solution

Answer: Option C

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Match the following.

List-I	List-II
a. Zero income elasticity	1. Substitute goods
b. Unit cross elasticity	2. Complementary goods
c. Positive cross elasticity	3. Indifferent goods
d. Negative cross elasticity	4. Independent goods

A) a-3, b-2, c-1, d-4 B) a-2, b-3, c-4, d-1 C) a-3, b-4, c-1, d-2 D) a-4, b-1, c-2, d-3

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Answer & Solution

Answer: Option C

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Name the Indian who has received the nobel prize in economics

A) Prof. J. K. Mehta B) Dr. Manmohan Singh C) Prof. Amartya Sen D) Dr. Pranab Mukherjee

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Answer & Solution

Answer: Option C

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Who gave the idea of the paradox of economy in the beginning?

A) Samuelson B) Keynes C) Bernard Mandeville D) Pigou

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Answer & Solution

Answer: Option B

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In region second of production with a single variable input

A) marginal product is declining but non-negative B) average product is negative C) average product is increasing D) average product is positive and marginal product is increasing

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Answer & Solution

Answer: Option A

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