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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-2

Each section contains 100 MCQs on Economics .
51
Economies of scale are of two kinds
Discuss
Answer & Solution
Answer: Option B
Solution:
Economies of scale are of two kinds Internal and external. Internal economies of scale are firm-specific or caused internally while external economies of scale occur based on larger changes outside the firm. Both result in declining marginal costs of production, yet the net effect is the same.
52
Which statement is true
Discuss
Answer & Solution
Answer: Option D
Solution:
AFC + AVC = ATC is true.
53
Identify the economist who had little formal education and started working in the money market at an early age of fourteen.
Discuss
Answer & Solution
Answer: Option A
Solution:
David Ricardo the economist had little formal education and started working in the money market at an early age of fourteen. At the age of 14 he entered into business with his father, who had made a fortune on the London Stock Exchange.
54
In which form, the largest percentage of national income is earned?
Discuss
Answer & Solution
Answer: Option C
Solution:
In the form of Employee' wages, the largest percentage of national income is earned.
55
Law of return applies to firms working in
Discuss
Answer & Solution
Answer: Option D
Solution:
Law of return applies to firms working in all kinds of market situations. A firm's production function could exhibit different types of returns to scale in different ranges of output.
56
Which is NOT a cause of shift in cost curves of a firm?
Discuss
Answer & Solution
Answer: Option D
Solution:
Price of product is not a cause of shift in cost curves of a firm. Cost curves shift in response to changes in two factors: If a technological change results in the firm using more capital, the average fixed cost curve shifts upward and at low levels of output, the average total cost curve may shift upward. At large output levels, average total cost decreases.
57
Who first raised the fear of a world food shortage?
Discuss
Answer & Solution
Answer: Option B
Solution:
T.R.Malthus first raised the fear of a world food shortage. In 1798 Thomas Robert Malthus famously predicted that short-term gains in living standards would inevitably be undermined as human population growth outstripped food production, and thereby drive living standards back toward subsistence.
58
The minimum wage is an example of
Discuss
Answer & Solution
Answer: Option A
Solution:
The minimum wage is an example of Price floor. A price floor is the absolute minimum price at which a good or service (labor in this case) can be sold and it is usually set by the government. Price floors are set above the market equilibrium price of a good or service.
59
During short period, diminishing returns may follow because
Discuss
Answer & Solution
Answer: Option D
Solution:
During short period, diminishing returns may follow because quantity of any one factor is fixed.
60
MC is given by
Discuss
Answer & Solution
Answer: Option B
Solution:
MC is given by Slope of TC. Slope tells us how (total) costs change when we change output/quantity produced.