Economics MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16

51.
Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its

A. Demand

B. Price

C. Cost of production

D. State of technology

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52.
When demand is perfectly inelastic, an increase in price will result in

A. A decrease in total revenue

B. An increase in total revenue

C. No change in total revenue

D. A decrease in quantity demanded

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53.
The cost on one thing in terms of the alternative given up is known as

A. Production cost

B. Physical cost

C. Real cost

D. Opportunity cost

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54.
When equilibrium price rises but equilibrium quantity remains unchanged, the cause is

A. Supply and demand both increase equally

B. Supply and demand both decrease equally

C. Supply decreases and demand increases

D. Supply increases and demand decreases

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55.
If demand is unitary elastic, a 25% increase in price will result in

A. 25% change in total revenue

B. No change in quantity demanded

C. 1% decrease in quantity demanded

D. 25% decrease in quantity demanded

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56.
Contraction of demand is the result of

A. Decrease in the number of consumers

B. Increase in the price of the commodity concerned

C. Increase in the prices of other goods

D. Decrease in the income of purchasers

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57.
According to M. Kalecki, the true measure of the degree of monopoly power is the

A. Ratio between price and marginal cost

B. Extent of monopolistic profit enjoyed by the monopolist

C. Cross-elasticity of demand for the product of the monopolist

D. Price charged by the monopolist minus marginal cost of production

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58.
Price of a product is determined in a free market by

A. Demand for the product

B. Supply of the product

C. Both demand and supply

D. The government

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59.
When cross elasticity of demand is a large positive number, one can conclude that

A. The good is normal

B. The good is inferior

C. The good is a substitute

D. The good is complement

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60.
All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?

A. The preferences of the individual

B. His monetary income

C. The price of the commodity under consideration

D. The prices of other goods

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Economics MCQ Questions and Solutions with Explanations | Commerce

51. Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its

Answer & Solution

52. When demand is perfectly inelastic, an increase in price will result in

Answer & Solution

53. The cost on one thing in terms of the alternative given up is known as

Answer & Solution

54. When equilibrium price rises but equilibrium quantity remains unchanged, the cause is

Answer & Solution

55. If demand is unitary elastic, a 25% increase in price will result in

Answer & Solution

56. Contraction of demand is the result of

Answer & Solution

57. According to M. Kalecki, the true measure of the degree of monopoly power is the

Answer & Solution

58. Price of a product is determined in a free market by

Answer & Solution

59. When cross elasticity of demand is a large positive number, one can conclude that

Answer & Solution

60. All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?

Answer & Solution

Read More Section(Economics)

51.
Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its

52.
When demand is perfectly inelastic, an increase in price will result in

53.
The cost on one thing in terms of the alternative given up is known as

54.
When equilibrium price rises but equilibrium quantity remains unchanged, the cause is

55.
If demand is unitary elastic, a 25% increase in price will result in

56.
Contraction of demand is the result of

57.
According to M. Kalecki, the true measure of the degree of monopoly power is the

58.
Price of a product is determined in a free market by

59.
When cross elasticity of demand is a large positive number, one can conclude that

60.
All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?