ExamVeda
Login
Home

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-3

Each section contains 100 MCQs on Economics .
21
Profit is maximum when
Discuss
Answer & Solution
Answer: Option B
Solution:
Profit is maximum when Slope of TC and TR is the same. To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC).
22
Excise tax is a part of
Discuss
Answer & Solution
Answer: Option B
Solution:
Excise tax is a part of Variable cost. Excise duty is an indirect tax. That means the tax amount is included as part of the selling price. Excise duty, also known as excise tax, is ultimately passed on and paid by the consumer when he makes a purchase.
23
Unemployment due to mechanization of agriculture is
Discuss
Answer & Solution
Answer: Option B
Solution:
Unemployment due to mechanization of agriculture is Structural. Due to structural changes in the economy, structural unemployment may take place. Structural unemployment is caused by a decline in demand for production in a particular industry, and consequent disinvestment and reduction in its manpower requirements.
24
The labour force participation rate is the
Discuss
Answer & Solution
Answer: Option B
Solution:
In economics, the labour force participation rate refers to the proportion of the population that is either employed or actively seeking employment. Therefore, Option B accurately defines the labour force participation rate as the proportion of the population working or looking for work. This measure includes both employed individuals and those who are unemployed but actively seeking employment.
25
At the point of equilibrium of firm (under perfect competition)
Discuss
Answer & Solution
Answer: Option A
Solution:
At the point of equilibrium of firm (under perfect competition) MC curve must be rising. If the firm is producing at an output level where the MC is falling, then this implies that it can further increase the profit by slightly raising the level of output. Equilibrium is established at the point where the MR is equal to MC and MC is rising.
26
The shape of rectangular hyperbola is made by
Discuss
Answer & Solution
Answer: Option B
Solution:
The shape of rectangular hyperbola is made by AFC. The AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes.
27
Unemployment of labour means that
Discuss
Answer & Solution
Answer: Option D
Solution:
Unemployment of labour means that a worker does not get full time job and a person does not get job according to his qualification.
28
The human effort applied to the production of goods is called in economics
Discuss
Answer & Solution
Answer: Option A
Solution:
The human effort applied to the production of goods is called Labour in economics. Labor is the human effort that can be applied to the production of goods and services.
29
Normal profit is
Discuss
Answer & Solution
Answer: Option A
Solution:
Normal profit is Part of total cost. Normal profit is an economic term that describes when a company's total revenues are equal to its total costs in a perfectly competitive market.
30
As output increases
Discuss
Answer & Solution
Answer: Option A
Solution:
As output increases when MC curve initially falls and then rises. The Marginal Cost curve is U shaped because initially when a firm increases its output, total costs, as well as variable costs, start to increase at a diminishing rate. Then as output rises, the marginal cost increases.