Economics MCQ Questions and Solutions with Explanations

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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-5

Each section contains 100 MCQs on Economics .

Assertion (A) All firms under perfect competition in long run earn only normal profit.
Reason (R) All firms under perfect competition in long run operate at the minimum average cost level.

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

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

If college enrolments drop by 10% when textbook prices double; textbook and enrolments are . . . . . . . ., goods and their cross-price elasticity is . . . . . . . .

A) Complementary; -0.5 B) Substitutes; 5 C) Complementary; -0.1 D) Substitutes; 0.5

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Which of the following is one of the basis for the indifference curve analysis?

A) Independent utility B) Ordinal utility C) Cardinal utility D) Diminishing utility

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

What is the major export item among plantation crops?

A) Spices B) Rubber C) Tea D) Coffee

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

In which type of market do you have the largest number of firms?

A) Perfect competition and oligopoly B) Perfect competition and differentiated competition C) Perfect competition and monopoly D) Differentiated competition and oligopoly

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

If a firm's revenues just coverall its opportunity costs, then

A) Normal profit is zero B) Economic profit is zero C) Total revenues equal its explicit costs D) Total revenues equal its implicit costs

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Decreasing costs of production are due to-

A) internal economies exceeding internal diseconomies B) external economies being greater than external diseconomies C) internal economies being greater than external diseconomies D) external economies

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The mother of central economic problems is

A) Unlimited needs B) Alternative use of resources C) Scarcity D) None of these

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

In the indifference curve/budget line diagram, the consumer reaches higher indifference curves when

A) Their budget decrease B) The price of only the goods measured along Y-axis increases C) The price of either good falls D) The price of either good rises

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The cost incurred in the past, and is not affected by a current decision is referred to as

A) Sunk cost B) Marginal cost C) Incremental cost D) Replacement cost

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

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Economics MCQ Questions and Solutions with Explanations | Commerce