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-4 section-3

Each section contains 100 MCQs on Economics .
31
Which of the following is a producer good?
Discuss
Answer & Solution
Answer: Option D
Solution:
Hammer is a producer good. A hammer is a durable rival good.
32
He described economics as a science of material welfare
Discuss
Answer & Solution
Answer: Option B
Solution:
Marshall described economics as a science of material welfare. Marshall's view is that economics studies all the actions that people take in order to achieve economic welfare. In the words of Marshall, "man earns money to get material welfare."
33
Economic profit is
Discuss
Answer & Solution
Answer: Option B
Solution:
Economic profit is Total revenue minus total cost. Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives. Economic profit = total revenue – (explicit costs + implicit costs).
34
Unit cost is another name for
Discuss
Answer & Solution
Answer: Option C
Solution:
Unit cost is another name for ATC. Average total cost (ATC): the per-unit cost of output.
35
Which statement relates to macroeconomics?
Discuss
Answer & Solution
Answer: Option D
Solution:
The government has failed to control inflation relates to macroeconomics. Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contradictory monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.
36
Ceteris Paribus means
Discuss
Answer & Solution
Answer: Option A
Solution:
Ceteris Paribus means other things remaining same. The Latin phrase ceteris paribus – literally, “holding other things constant” – is commonly translated as “all else being equal.” A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same.
37
A firm earns economic profit when total profit exceeds
Discuss
Answer & Solution
Answer: Option A
Solution:
A firm earns economic profit when total profit exceeds Normal profit. Economic profit is the profitability measurement that calculates the amount that revenues received from selling a product exceeds opportunity costs incurred from using resources to make and sell these products.
38
All inputs can be varied in
Discuss
Answer & Solution
Answer: Option B
Solution:
All inputs can be varied in Long run. The long run is defined as a period in which all INPUTS are variable. Because of that all costs are variable too. You're right that in the short run your rent and the cost of the machines you've already bought are fixed costs. But in the long term they aren't.
39
Scarcity means
Discuss
Answer & Solution
Answer: Option C
Solution:
Scarcity means Less supply than demand. Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.
40
Who is the 'father of economics'?
Discuss
Answer & Solution
Answer: Option B
Solution:
Adam Smith is the 'father of economics'. Adam Smith is called the father of economics for his work on The Wealth of Nations which he published in 1776.