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-15

The production function X = AL^3/5 K^1/2 is homogeneous of degree

A) greater than 1 B) 1 C) less than 1 D) zero

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Answer & Solution

Answer: Option A

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'Ceteris paribus' clause in the law of Demand does not mean

A) the price of the commodity does not change B) the price of its substitutes does not change C) the income of the consumer does not change D) the price of complementary goods does not change

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Answer & Solution

Answer: Option A

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If a demand curve shifts to the right, it means-

A) price of the commodity has gone down B) demand function has improved C) the supply function has improved D) the real income of the consumer has gone down

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Answer & Solution

Answer: Option B

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In which of the following form of the market the producer is isolated and selling costs is incurred

A) Perfect competition B) Monopoly C) Monopolistic competition D) None of these

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Answer & Solution

Answer: Option C

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Sources of long term finance will be

A) Equity Share Capital B) Debenture C) Preference Share Capital D) All of the above

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Answer & Solution

Answer: Option D

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Statement I The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement II The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.

A) Both statements are true B) Statement I is true, but Statement II is false C) Statement I is false, but Statement II is true D) Both statements are false

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Answer & Solution

Answer: Option B

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Consider the following statements.
1. Point of inflexion exists where I^st stage of law of variable proportions ends.
2. TP increases even when MP is decreasing.
3. Producer will stop only at II^nd stage of variable proportions.
Which of the statement(s) given above is/are correct?

A) Both 1 and 2 B) 1, 2 and 3 C) Only 1 D) None of the above

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Answer & Solution

Answer: Option B

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Match the following.

List-I	List-II
a. Prof. Robin	1. Security profit
b. Prof. Milton Kafoglis	2. Marris growth maximisation
c. Prof. Rothschild	3. Output maximisation

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

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Answer & Solution

Answer: Option B

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Match the following.

List-I	List-II
a. Law of demand is fully applicable	1. Giffen goods not applicable
b. Law of demand is not applicable at all	2. Veblon goods partly applicable
c. Law of demand is partly applicable	3. Normal goods fully applicable

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

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Answer & Solution

Answer: Option C

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The subject which is related to the income and expenditure of the government is called

A) National income B) Gross Domestic Product (GDP) C) Revenue D) Economic system

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Answer & Solution

Answer: Option C

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