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-7

Who gave the surplus value theory of wage?

A) David Ricardo B) Karl Marx C) Adam Smith D) F. A. Walker

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Answer & Solution

Answer: Option B

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The longer the time period, the elasticity of supply will be

A) Perfectly elastic B) Inelastic C) More elastic D) Stable

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Answer: Option C

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Which of the following are true for perfect competition?
1. Very large number of buyers and sellers
2. Restriction on entry and exit of firms
3. Perfectly elastic demand
Select the correct answer

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

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Answer: Option C

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Which is not the part of business cycle?

A) Boom B) Depression C) Recovery D) Acceleration

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Answer: Option D

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Assertion (A) Negative MR is not possible in case of perfect competition.
Reason (R) Price remains constant for a perfectly competitive firm.

A) Both (A) and (R) are true and (R) is the correct explanation of (A) B) Both (A) and R are true, but (R) is not the correct explanation of (A) C) (A) is true, but (R) is false D) (A) is false, but (R) is true

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Answer: Option A

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The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas for 1,000 miles. This is an example of

A) Economies of scale B) Normative economies C) Diminishing marginal returns D) Increasing marginal product of labour

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Answer: Option A

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Income-elasticity of demand will be zero when a given change in income brings about

A) a less than proportionate change in quantity demanded B) a more than proportionate change in quantity demanded C) the same proportionate change in demand D) no change in demand

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Answer: Option D

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If a consumer consumes three commodities X, Y and Z with a given income and price, his satisfaction will be maximum when

A) $$\frac{{M{U_x}}}{{{P_x}}} = \frac{{M{U_y}}}{{{P_y}}} = \frac{{M{U_z}}}{{{P_z}}}$$ B) $$\frac{{M{U_x}}}{{M{U_y}}} = \frac{{M{U_y}}}{{M{U_z}}} = \frac{{M{U_z}}}{{M{U_x}}}$$ C) $$\frac{{M{U_x}}}{{M{U_y}}} = \frac{{{P_x}}}{{{P_y}}} = \frac{{M{U_x}}}{{{P_z}}}$$ D) $$\frac{{M{U_x}}}{{{P_y}}} = \frac{{M{U_y}}}{{{P_z}}} = \frac{{M{U_z}}}{{{P_x}}}$$

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Answer: Option A

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The Delphi method is used for

A) Judgemental forecast B) Time series forecast C) Both A and B D) All of the above

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Answer: Option A

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Match the items of List-I with List-II

List-I	List-II
a. Fiscal Policy	1. Mitigation of National hazards
b. Technology Policy	2. Balance of Payment
c. Macro-Economic Policy	3. Fiscal Federalism
d. Monetary Policy	4. Inflation

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

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Answer: Option B

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