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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-2

Each section contains 100 MCQs on Economics .
41
The most efficient scale of production of a firm is where
Discuss
Answer & Solution
Answer: Option A
Solution:
The most efficient scale of production of a firm is where LAC is minimum. LAC at the efficient scale of production is thus the minimum average cost.
42
A firm should shut down in the short run if it is not covering its
Discuss
Answer & Solution
Answer: Option A
Solution:
A firm should shut down in the short run if it is not covering its Variable cost. In the short run, a firm that is operating at a loss (where the revenue is less that the total cost or the price is less than the unit cost) must decide to operate or temporarily shutdown. The shutdown rule states that “in the short run a firm should continue to operate if price exceeds average variable costs. ”
43
Economic problems arise because
Discuss
Answer & Solution
Answer: Option D
Solution:
Economic problems arise because Wants are unlimited, Resources are scarce and Scare resources have alternative uses.
44
In the short run, when the output of a firm increases, its average fixed cost
Discuss
Answer & Solution
Answer: Option B
Solution:
In the short run, when the output of a firm increases, its average fixed cost decreases.
45
Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. Do you know in which year was Francois Quesnay's Tableu Economique published?
Discuss
Answer & Solution
Answer: Option D
Solution:
Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. In the year 1758, Francois Quesnay's Tableu Economique was published.
46
Identify the author of "The principles of Political Economy and Taxation"
Discuss
Answer & Solution
Answer: Option C
Solution:
The Principles of Political Economy and Taxation (19 April 1817) is a book by David Ricardo on economics. Ricardo claims in the preface that Turgot, Stuart, Adam Smith, Jean-Baptiste Say, Sismondi, and others had not written enough "satisfactory information" on the topics of rent, profit, and wages.
47
Which is not a central problem of an economy?
Discuss
Answer & Solution
Answer: Option C
Solution:
How to maximize private profit is not a central problem of an economy. Some of the central problems that are faced by every economy of a country are as follows: Production, distribution and disposition of goods and services are the basic economic activities of life. In the course of these activities, every society has to face scarcity of resources.
48
A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is
Discuss
Answer & Solution
Answer: Option A
Solution:
A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is Equal to 1.
49
Who is generally regarded as the founder of the 'Classical School'?
Discuss
Answer & Solution
Answer: Option B
Solution:
Adam Smith is generally regarded as the founder of the 'Classical School'.
50
Union leaders are in better position to bargain for higher wages if demand for labour is
Discuss
Answer & Solution
Answer: Option B
Solution:
Union leaders are in better position to bargain for higher wages if demand for labour is Inelastic. The capacity of trade unions to raise wages in a particular industry depends on the elasticity of demand for labour.