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-6 section-13

Match the items of List I with items of List II and indicate the correct matching.

List-I	List-II
a. Non-price quantity relationships of demand	1. Extension and contraction of demand
b. Income effect of a price rise greater than its substitution effect	2. Ordinal utility approach
c. Transitivity and consistency of choices	3. Increase and decrease in demand
d. Price quantity relationships of demand	4. Giffen goods

A) a-4, b-2, c-3, d-1 B) a-2, b-1, c-4, d-3 C) a-3, b-4, c-2, d-1 D) a-1, b-2, c-3, d-4

Discuss

Answer & Solution

Answer: Option C

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

When does the problem of adverse balance of payments arise?

A) When imports fall B) When imports are more than exports C) When exports fall D) When exports increase

Discuss

Answer & Solution

Answer: Option B

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

The Kinked demand curve model of oligopoly was developed by

A) Augustin Cournot B) Stackelberg C) Edgeworth D) Sweezy

Discuss

Answer & Solution

Answer: Option D

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

Which of the following factor is not directly responsible for slowing down the growth of infrastructure?

A) High level of perceived political risk B) High level of sunk cost C) High probability of time and cost over-run D) Introduction of competition in all sectors

Discuss

Answer & Solution

Answer: Option D

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

If the prices increase by 100% over the previous year and GNP is constant, it means that

A) production is constant B) this year the production has halved C) the production has doubled this year D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

Oligopoly Competition is charecterised by

A) A few dominant firms and substantial barriers to entry B) A few large firms and no entry barriers C) A large number of small firms and no entry barriers D) One dominant firm and low entry barriers

Discuss

Answer & Solution

Answer: Option A

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

If the income elasticity of demand is more than one unit, then the good is a

A) Inferior goods B) Luxury C) Imperative D) Unrelated object

Discuss

Answer & Solution

Answer: Option B

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

What is the objective while setting up a public sector undertaking?

A) Social welfare B) National interest C) Labour welfare D) All of the above

Discuss

Answer & Solution

Answer: Option D

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

In a diagram below is shown the total product curve OA of labour. For it which of the following statements is true-
Economics mcq question image

A) the MP of labour always rises B) first rises and then falls C) always declines D) first falls and then rises

Discuss

Answer & Solution

Answer: Option B

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

Which of the following is a characteristic of pure monopoly?

A) One seller of the product B) Low barriers to entry C) Close substitute products D) Perfect information

Discuss

Answer & Solution

Answer: Option A

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