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-15

The profit seeking monopolist operates at a level of output, where

A) P = MC B) MC = AC C) MR = MC D) All of the above

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Answer & Solution

Answer: Option C

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Match the following.

List-I	List-II
a. Homogeneous product	1. Perfect competition
b. Barriers to entry	2. Monopoly
c. Differentiated product	3. Oligopoly
d. Absence of close substitutes	4. Monopolistic competition

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

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Answer: Option B

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Consider two straight line demand curves NM and RS in the given figure.
Economics mcq question image

Select the correct statement from amongst the following.

A) Price elasticity of demand will be equal to 1 at point A and less than 1 at point B B) Price elasticity of demand will be greater than 1 at point A and equal to 1 at point B C) Price elasticity of demand will be less than 1 at point A and greater than 1 at point B D) Price elasticity of demand will be greater than 1 at point A and less than 1 at point B

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Answer: Option A

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What is the degree of elasticity of demand in case the demand is represented by a straight line parallel to the x-axis?

A) e > 1 B) e = 0 C) e = ∞ D) e < 1

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Answer: Option C

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A rise in the price of a good causes producers to supply more of the good. This statement illustrates

A) The nature of an inferior good B) The law of demand C) The law of supply D) A change in supply

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Answer: Option C

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The tax burden on the seller in the market will be the highest when the goods?

A) If both supply and demand are elastic B) If both supply and demand are not elastic C) If demand is inelastic but supply is elastic D) If demand is elastic but supply is inelastic

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Answer: Option D

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A firm that produces highly substitute goods can adopt which one of the following pricing strategies?

A) Transfer pricing B) Going Rate pricing C) Product bundling D) Full cost pricing

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Answer: Option B

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Demand Schedule is shown as

A) a result of increase in the size of the family B) a result of change in taste C) a function of price alone D) none of these

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Answer: Option C

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Assume that the leading firms in an industry combine to carry out a common policy in their interests, but that they keep their own, separate identities. Such a combination is usually known as a

A) trust B) cartel C) joint-Stock company D) pure monopoly

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Answer: Option B

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The process of capital formation depends on

A) National income B) Expenses C) Foreign aid D) Savings

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Answer: Option D

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