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-16

According to Malthus, the population of a country grows

A) Arithmetically B) Algebraically C) Geometrically D) At constant rate

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Answer & Solution

Answer: Option C

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The meaning of the word 'economic' is most closely connected with the word

A) extravagant B) scarce C) unlimited D) restricted

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Answer & Solution

Answer: Option B

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Match the items of List-I with the items of List-II:

List-I	List-II
a. Law of diminishing marginal utility	1. Cross demand
b. Relationship between price of one commodity and demand for other commodity	2. Oligopoly
c. Skimming the cream policy	3. Cardinal approach
d. Price rigidity	4. Pioneer pricing

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

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Answer & Solution

Answer: Option B

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An exceptional demand curve is one that slopes-

A) upwards to the right B) downwards to the right C) upwards to the left D) horizontally

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Answer & Solution

Answer: Option A

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Slutsky theorem deals with decomposition of-

A) goods into high and low elasticity of demand B) goods into necessaries and luxuries C) goods into high price and low price D) price effect into substitution and income effect

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Answer & Solution

Answer: Option D

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Which two of the following statements are true?
I. A simple monopoly firm always earns super normal profit
II. Sweezy's kinked demand curve model is the best known model explaining relatively more satisfactory behaviour of oligopoly firm for price rigidity
III. A perfectly competitive firm is price-taker
IV. Firms under monopolistic competition earn only normal profits
Choose the correct option from those below

A) I and IV B) II and IV C) II and III D) I and III

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Answer & Solution

Answer: Option C

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Monopolistic competition differs from perfect competition primarily because

A) in perfect competition, firms can differentiate their products B) in monopolistic competition, firms can differentiate their products C) in monopolistic competition, there are relatively few firms D) in perfect competition, there are no barriers to entry

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Answer & Solution

Answer: Option B

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Which one of the following would not lead to a shift in the demand curve for overseas holidays?

A) An advertising campaign by holiday-tour operators B) A fall in the disposable income of consumers C) A rise in the price of domestic holidays D) Arise in the exchange rate for the domestic currency

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Answer & Solution

Answer: Option D

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According to Robbins, Economics is-

A) A social science B) A personal science C) Both A and B D) None of these

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Answer & Solution

Answer: Option C

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The contribution of agriculture to Indian economy is

A) Increasing B) Decreasing C) Constant D) None of these

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Answer & Solution

Answer: Option B

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