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-5 section-7

If the investment demand curve is vertical it shows that

A) Monetary and fiscal policies are ineffective B) Both monetary and fiscal policies are effective C) Monetary policy is effective but fiscal policy is ineffective D) Monetary policy is ineffective but fiscal policy is effective

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Answer & Solution

Answer: Option D

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An indifference curve shows combination that yields . . . . . . . .

A) Equal utility B) Equal output C) Different output D) Different utility

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Answer & Solution

Answer: Option A

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Total Revenue =

A) Price × Quantity B) Price × Income C) Income × Quantity D) None of these

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Answer & Solution

Answer: Option A

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Price discrimination policy helps in increasing profits in case of

A) perfect competition B) monopolistic competition C) monopoly D) oligopoly

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Answer & Solution

Answer: Option C

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An income demand curve for an inferior commodity slopes

A) horizontal B) vertical C) upwards to the right D) downwards to the right

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Answer & Solution

Answer: Option C

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Economic liberalism started in India-

A) by substantial changes in the licensing policy B) by removing procedural hurdles for foreign direct investment C) by significantly reducing the import tax rates D) All of the above

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Answer & Solution

Answer: Option D

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'A seller market is one' where-

A) Where sellers find it difficult to sell B) It is convinient for the buyers to buy C) Sellers can sell what they produce D) Buyers dominate the market

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Answer & Solution

Answer: Option C

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The elasticity of supply for the supply function of q = 20p is

A) zero B) unity C) more than unity D) less than unity

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Answer & Solution

Answer: Option B

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Statement-I: The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement-II: After the New Industrial Policy - 1991, the Balance of Trade for India has always been positive.

A) Statement (I) is correct, but (II) is incorrect B) Statement (II) is correct, but (I) is incorrect C) Both Statements (I) and (II) are correct D) Both Statements (I) and (II) are incorrect

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Answer & Solution

Answer: Option A

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Government accounting is based on:

A) Inflation accounting B) Social accounting C) Single accounting system D) Double accounting system

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Answer & Solution

Answer: Option C

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