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-8

An improvement in technology lowers the cost of producing coffee. At the same time, the consumer's preference for coffee increases. The equilibrium price of coffee will

A) Rise, fall or stay, depending on the relative size of the shifts in the demand and supply curves B) Remain the same C) Fall D) Rise

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Answer & Solution

Answer: Option A

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Match the List-I with List-II and select the correct answer.

List-I	List-II
a. Expansion in demand	1. Left to right on the same demand curve.
b. Contraction in demand	2. Right to left movement on the same demand curve.
c. Increase in demand	3. Rightward shift of the demand curve.
d. Decrease in demand	4. Leftward shift of the demand curve.

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

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Answer & Solution

Answer: Option A

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'Change in quantity demanded' refers to

A) upward shift of the demand curve B) downward shift of the demand curve C) movement on the same demand curve D) none of these

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Answer & Solution

Answer: Option C

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National population policy declared

A) On 16^th April, 1976 B) On 16^th April, 1986 C) On 16^th April, 1969 D) None of the above

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Answer & Solution

Answer: Option A

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The maximum satisfaction to a discerning consumer meets at the point, where

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) $$\frac{{M{U_X}}}{{M{U_Y}}} \ne \frac{{{P_X}}}{{{P_Y}}}$$

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Answer & Solution

Answer: Option C

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In the demand and price of giffen substance

A) Inverse relationship B) Direct relationship C) No relation D) None of these

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Answer & Solution

Answer: Option B

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Statement I Business decision makers deal with the complex, rather chaotic, business conditions of the real world and have to find the way to their destination, i.e. achieving the goal that they set for themselves.
Statement II Even without application of economic logic and tools of analysis, business decisions are always rational and real and are not counter productive.

A) Both the statements are correct B) Both the statements are incorrect C) Statement I is correct, while Statement II is incorrect D) Statement I is incorrect, while Statement II is correct

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Answer & Solution

Answer: Option C

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Which of the following are the features of pure competition?
1. Large number of buyers and sellers
2. Freedom of entry and exit
3. Perfect homgeneity
4. Mobility of resources
Select the correct answer

A) 1, 2 and 3 B) 2, 3 and 4 C) 1, 3 and 4 D) All of these

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Answer & Solution

Answer: Option A

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A shift in supply will have a bigger effect on price than output, if demand is

A) income elastic B) income inelastic C) price elastic D) price inelastic

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Answer & Solution

Answer: Option D

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The subject matter of Macro Economics includes

A) National Income B) International Trade C) Trade Cycle D) All of the above

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Answer & Solution

Answer: Option D

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