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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-5 section-1

Each section contains 100 MCQs on Economics .
41
An economic theory is
Discuss
Answer & Solution
Answer: Option D
Solution:
An economic theory is a tested hypothesis. Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a population parameter. The methodology employed by the analyst depends on the nature of the data used and the reason for the analysis. Hypothesis testing is used to infer the result of a hypothesis performed on sample data from a larger population.
42
What is the shape of the average fixed cost (AFC) curve?
Discuss
Answer & Solution
Answer: Option D
Solution:
Rectangular hyperbola is the shape of the average fixed cost (AFC) curve. The AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes.
43
A decrease in demand causes the equilibrium price to
Discuss
Answer & Solution
Answer: Option B
Solution:
A decrease in demand causes the equilibrium price to Fall. A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined.
44
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is
Discuss
Answer & Solution
Answer: Option C
Solution:
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is 3.
45
Identify the aspect of taxation which is related to normative economics
Discuss
Answer & Solution
Answer: Option C
Solution:
The aspect of taxation which is related to normative economics is Equity of tax.
46
If elasticity of demand is very low, it shows that the commodity is
Discuss
Answer & Solution
Answer: Option D
Solution:
If elasticity of demand is very low, it shows that the commodity is necessity and has little importance in total budget.
47
An increase in the supply of a commodity is caused by
Discuss
Answer & Solution
Answer: Option D
Solution:
An increase in the supply of a commodity is caused by Improvements in technology, Fall in the prices of other commodities and Fall in the prices of factors of production.
48
When price is below equilibrium level, there will be
Discuss
Answer & Solution
Answer: Option B
Solution:
When price is below equilibrium level, there will be Shortage of commodity in the market.
49
The following are causes of shift in demand EXCEPT
Discuss
Answer & Solution
Answer: Option B
Solution:
The following are causes of shift in demand except Change in price. A shift in the demand curve is when a determinant of demand, other than price, changes. A shift to the left means demand drops, and vice-versa.
50
Demand for a commodity refers to a
Discuss
Answer & Solution
Answer: Option D
Solution:
Demand for a commodity refers to a quantity of the commodity demanded at a certain price during any particular period of time.